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Fintech faces its reckoning: It’s only a matter of time until the house of cards collapses

TechCrunch · 1y ago

Fintech faces its reckoning: It’s only a matter of time until the house of cards collapses

The rise of fintechs, fueled by cheap money and interchange fees, faces challenges as central banks raise interest rates. Many fintechs rely heavily on interchange fees as a source of revenue, but these fees are capped, while interest rates are not. This creates a dilemma as borrowing costs for fintechs can spiral out of control in times of rising interest rates. To survive, fintechs need to diversify their revenue streams, focus on building great software, and reevaluate their customer incentives.

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Zaggle Partners Hero MotoCorp To Help Streamline And Optimise Management Of Its Staff Expenses

Inc42 · 1y ago

Zaggle Partners Hero MotoCorp To Help Streamline And Optimise Management Of Its Staff Expenses

Fintech SaaS startup Zaggle has entered into an agreement with Hero MotoCorp to provide its employee expense management platform, Zaggle Save. Zaggle Save is a multi-purpose card that can replace food cards, fuel cards, travel vouchers, gift cards, and more. The agreement with Hero MotoCorp will be in effect from July 4, 2024, until the agreement is terminated according to mutually agreed terms.

Visa, Mastercard stop business payments via cards post RBI instructions

Economic Times

Economic Times · 1y ago

Visa, Mastercard stop business payments via cards post RBI instructions

The Reserve Bank of India (RBI) has instructed card networks like Visa and Mastercard to halt card-based vendor payments made by corporations. Fintech startups operating in this sector have received a notice to pause business payments made by commercial cards until further notice. The exact reason for this regulatory action remains unknown, with speculation focusing on payment aggregator guidelines and potential issues regarding KYC compliance for vendors and merchants.

Fintech startups freeze salary loan products as RBI cracks down on unsecured loans

Economic Times

Economic Times · 6m ago

Fintech startups freeze salary loan products as RBI cracks down on unsecured loans

Many fintech startups offering short-term credit have curtailed or discontinued their products due to stricter Reserve Bank of India regulations on unsecured lending. Companies like Uni Cards and Jupiter are affected, with Uni Cards halting its ‘advance salary’ product, Paychek, following regulatory changes. An advance salary typically involves offering a month-long loan with an upfront fee and high-interest rates if not repaid on time. The RBI aims to restrict exorbitant interest rates and manage regulatory ecosystems for such products.

Bumble cuts ~350 employees as dating apps face a reckoning

TechCrunch · 1y ago

Bumble cuts ~350 employees as dating apps face a reckoning

Bumble, the online dating platform, has reported weak Q4 2023 results, with a net loss of $32 million and $273.6 million in revenue. This comes alongside a disappointing Q1 2024 forecast, leading to a 10% drop in Bumble's stock. As a result, Bumble is making significant changes, including a workforce reduction of 37% and an app overhaul to stimulate growth. The company plans to focus on AI, enhanced safety measures, and features targeting younger audiences. Bumble faces stiff competition from Match Group, owner of Tinder, Hinge, and Match, as they aggressively target Gen Z users.

Govt Has Nothing To Do With RBI’s Action On Paytm Payments Bank: Financial Services Secy

Inc42 · 1y ago

Govt Has Nothing To Do With RBI’s Action On Paytm Payments Bank: Financial Services Secy

Paytm Payments Bank faces no systemic risks to financial stability, according to Vivek Joshi, the financial services secretary. The Ministry of Finance also supports the Reserve Bank of India's crackdown on the bank, deeming it in the interest of consumers and the Indian economy. Joshi mentioned that the matter should be resolved at the level of the central bank, and the government had no involvement until now. The RBI is expected to issue clarification on the situation due to the large user base of Paytm.

Mediation collapses between Meta and Kenyan moderators, rights group says

Economic Times

Economic Times · 1y ago

Mediation collapses between Meta and Kenyan moderators, rights group says

Settlement talks have failed between Meta and Kenyan content moderators, who filed a lawsuit accusing the company of unfair dismissal. The moderators claim they were let go for attempting to unionize and were subsequently blacklisted. British tech rights group Foxglove stated that Meta and its subcontractor Sama made little effort to address the concerns raised by the plaintiffs. A hearing on the matter is scheduled for October 31. Meta has faced similar allegations in Kenya and is being sued for allowing hateful content on its platform.

Build for customers, not VCs

Ycombinator

Ycombinator · 4m ago

Build for customers, not VCs

It’s easy to analyze your way out of taking the first step. It’s something YC sees a lot, particularly when founders try to choose what to build based on what they think VCs will like. These founders will find a great problem that they could solve, only to convince themselves it’s not “venture scale.” Before they’ve written a line of code or even talked to a single person about it, they’re trying to predict market opportunities and exit strategies a decade down the road. That’s just not how early stage startups work. In this one, they talk about the risks of “thinking like a VC”, how to know when you’re stuck in this mindset, and how to unlearn it (spoiler: stop reading so much about who’s raising what.) They’ll also cover a short list of things that we’ve found actually matter when starting a company — it’s simpler than a lot of people think.

RBI Cracks Down On Card Networks’ Tie-Ups With Payments Intermediaries

Inc42 · 1y ago

RBI Cracks Down On Card Networks’ Tie-Ups With Payments Intermediaries

The Reserve Bank of India (RBI) has directed an unnamed card network to suspend all card-based business payments made through payments intermediaries to entities that do not accept card payments. The RBI found that a card network had an arrangement allowing businesses to make card payments through intermediaries to entities that do not accept cards. The regulatory authority has advised the card network to halt such arrangements until further notice, as the matter is being examined in detail. The RBI also highlighted issues with fund pooling accounts, compliance with information requirements, and lack of required authorizations for such transactions.

Set age-limit for social media platforms: Karnataka High Court

Economic Times

Economic Times · 1y ago

Set age-limit for social media platforms: Karnataka High Court

The Karnataka High Court has suggested that the government should consider implementing age limits for social media users. The court proposed that platforms could verify user ages using documents like Aadhaar cards, similar to how online gaming platforms are required to do. The suggestion came during a hearing in a case involving the Center's orders to block certain tweets and accounts. The High Court stated that users should be at least 21 years old and expressed concerns about school-going children being addicted to social media. The matter has been adjourned until Wednesday.

Flipkart secures NBFC licence from RBI, to begin lending from own books

Economic Times

Economic Times · 2m ago

Flipkart secures NBFC licence from RBI, to begin lending from own books

E-commerce giant Flipkart has obtained a non-banking finance company (NBFC) license from the Reserve Bank of India, allowing it to extend credit from its own resources. This move marks Flipkart's second major fintech venture after entering the UPI payments sector. With plans to list on Indian stock exchanges, Flipkart is now positioned to offer in-house lending, working alongside existing collaborations with Axis Bank for credit cards and other lenders for consumer loans and buy-now-pay-later options.

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