Nicolas Pinto’s Post

After years of decline (-36% in 15 years), the number of banks in the EU is poised to rise again, as fintechs are becoming the new normal. Memo Bank used to be a singularity, securing a banking licence from day 1. Qonto, SumUp, Lydia, Rauva and other large scale ups are now running towards the finish line with regulator discussions to secure their own licence. It's bound to reshape the market with larger offers including native credit and saving offers, and should help them offer a larger range of "regulated" accounts that are still eluding fintechs in their race to conquer the retail market. The last edge of traditional banks is quickly eroding. For individuals and SME, it's a done deal. It'll happen, rather sooner than later. For larger entreprises, it remains to be seen!

𝐁𝐍𝐏𝐋’𝐬 𝐒𝐞𝐜𝐨𝐧𝐝 𝐀𝐜𝐭: 𝐅𝐫𝐨𝐦 𝐆𝐫𝐨𝐰𝐭𝐡-𝐚𝐭-𝐀𝐥𝐥-𝐂𝐨𝐬𝐭𝐬 𝐭𝐨 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐞𝐝 𝐑𝐞𝐢𝐧𝐯𝐞𝐧𝐭𝐢𝐨𝐧. 2025 is the year BNPL grows up. After years of breakneck expansion and mounting defaults, Buy-Now-Pay-Later players are rewriting their playbooks, tightening risk, reporting to bureaus, and embedding compliance into every checkout flow. The new question for banks and fintechs isn’t “should we offer BNPL?”, it’s “how do we offer it responsibly?” In this blog, we dive into how leading players are rebuilding the ecosystem: Affirm → achieving profitability while integrating credit reporting. Klarna → evolving from disruptor to merchant growth ecosystem. Splitit → reinventing BNPL via existing credit-line infrastructure. Zilch → proving regulation can be a competitive advantage. Galileo → powering BNPL-as-a-Service for banks. The takeaway: BNPL is no longer a product; it’s becoming a regulated financial capability embedded deep in digital banking stacks. 🔗Read the full blog: https://lnkd.in/gJyqR2KD #BNPL #Fintech #DigitalPayments #FinancialInclusion #EmbeddedFinance #RegTech #ConsumerCredit #FintechInnovation #PaymentsTransformation #BNPL2025 TechBuzz Media

Klarna: From BNPL Leader to Global Digital Bank – The Next Chapter In the fast-evolving fintech world, few companies illustrate transformation as clearly as Klarna. With over 111 million active consumers and nearly 790,000 merchant partners, the company has built significant scale. Recently, Klarna released its H1 2025 results: • GMV grew approximately 17% YoY to SEK 571 billion. • Net operating income increased approximately 12% YoY to SEK 12.3 billion. • Q2 revenue reached US$823 million with an adjusted operating profit of US$29 million. However, the key story isn’t just growth; it’s transition. Klarna is moving beyond “buy-now-pay-later” into full-service digital banking, offering deposits, cards, and savings. This shift has the potential to lower its cost of funds, improve margins, and better monetize its large user base. With its scale, Klarna can provide more than just checkout credit, expanding into banking services, personal finance, and spending cards, with user acquisition costs already covered. Klarna is embedding deeper into payment flows through merchant partnerships and integrations with major payment service providers, reinforcing its platform position. If Klarna can successfully transition to a digital bank, it could evolve into a “super app” of finance rather than remaining a niche BNPL player, shifting its competitive landscape from BNPL competitors to neo-banks and traditional banks. However, challenges remain: • Profitability remains fragile, with net losses persisting when full costs are considered. • Credit and funding risks arise as Klarna expands into longer-term loans or deposit-backed lending, exposing it to macroeconomic downturns and tighter regulatory scrutiny. • Execution is critical; transforming from a checkout-credit provider into a full digital bank involves complexities in technology, regulation, trust, and operations. #investment #fintech

“The Secret Flow of Buy Now, Pay Later 🛍️→🏦” 💳 BNPL Backend Flow 1️⃣ User Checkout: ▪️ User selects BNPL at merchant site. ▪️User data (ID, credit score, limits) sent to Fintech. 2️⃣ Merchant → Fintech: ▪️Merchant requests payment approval from Simpl. ▪️Simpl verifies user eligibility instantly using risk scoring & credit checks. 3️⃣ Fintech → Lender / Own Capital: ▪️Simpl either uses its own funds or partners with a bank/lender to pay the merchant immediately. ▪️Payment confirmation sent to merchant. 4️⃣ Fintech → User Repayment: ▪️User is billed via app/UPI/card. ▪️Simpl tracks repayments, sends reminders, calculates late fees. 5️⃣ Compliance Layer (RBI Guidelines): All transactions follow RBI digital lending rules: ▪️Interest & fee transparency ▪️Fair collection practices ▪️Data security & reporting 🔎 Backend Flow Diagram (Simple): User → Merchant → Fintech System → Lender / Bank → User Repayment → RBI Compliance 💡 Key Backend Notes: 🔄 Real-time eligibility check 🔄Instant payout to merchant 🔄Repayment tracking & risk management 🔄RBI audits & reporting #FinTech #Day54|100ofReadingFintechSector #BNPL #BuyNowPayLate #DigitalPayments #Simpl #PaymentsTech #RBI #FintechIndia #CreditTech #SmartPayments #FinanceSimplified #PayLater #DigitalLending

𝐈𝐟 𝐈 𝐡𝐚𝐝 𝐚 𝐦𝐚𝐠𝐢𝐜 𝐰𝐚𝐧𝐝... 🪄 and could fast-forward the next 3–5 years in fintech, here’s what I think we’d see: 1️⃣ 𝐁𝐍𝐏𝐋 (𝐁𝐮𝐲 𝐍𝐨𝐰, 𝐏𝐚𝐲 𝐋𝐚𝐭𝐞𝐫) will become a go-to option for customers who want the flexibility to spread payments over time — without relying on traditional credit. And the next wave? B2B BNPL — where small retailers can access short-term financing right at checkout, unlocking cash flow without heavy underwriting or long approvals. 2️⃣ 𝐎𝐩𝐞𝐧 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐚𝐧𝐝 𝐀𝐏𝐈 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧𝐬 revolutionizing how we access and use financial data. Imagine smoother logins across platforms, real-time analytics for smarter decision-making, and instant data-sharing between banks, processors, and business software — all while maintaining top-tier security. This is already happening across many Credit Unions and top tier banks. 3️⃣ 𝐈𝐧𝐬𝐭𝐚𝐧𝐭 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 evolving from a “nice to have” to a must-have. Merchants will expect same-day settlement, instant payouts, and capital that moves at the same speed as their sales. Together, these innovations will democratize access to what used to be million-dollar technology — now available to every entrepreneur for a fraction of the cost. They will help small businesses scale faster, compete globally, and serve customers better than ever before. And with the talent, regulatory stability, and collaborative ecosystem we have, Canada is positioned to play a major role in shaping the next wave of global fintech innovation. 𝐖𝐡𝐚𝐭 𝐝𝐨 𝐲𝐨𝐮 𝐭𝐡𝐢𝐧𝐤 𝐰𝐢𝐥𝐥 𝐝𝐫𝐢𝐯𝐞 𝐭𝐡𝐞 𝐧𝐞𝐱𝐭 𝐛𝐢𝐠 𝐥𝐞𝐚𝐩? #Fintech #Payments #BNPL #OpenBanking #InstantFunding #DigitalCommerce #Innovation #Canada #Smallbusiness #Interchange #Interac #Bank2Bank #Paymentprocessing #Enterprise #APIintegration #Affirm #Klarna #CoastCapital #GlobalPayments

Behind every seamless digital payment lies an ecosystem connecting banks, merchants, and platforms, making money movement instant and invisible. But not all systems work the same way. Here’s how they differ and why their collaboration defines the future of digital commerce: 🔹 Traditional Model — Each merchant applies separately and manages its own compliance, settlements, and integrations. Reliable but time-consuming; best for large enterprises. 🔹 Payment Facilitator (PayFac) — Onboards sub-merchants under a master account for faster approval, centralized compliance, and unified reporting. Ideal for platforms and marketplaces. 🔹 Payment Processor — Provides the infrastructure that moves funds securely between banks, PayFacs, and acquirers. The backbone of digital payments. At AltPayNet, we bridge both worlds.    As a Payment Processor and Payment Facilitator, we deliver the infrastructure and agility businesses need to move money faster, safer, and smarter across any channel, currency, or country. 🔗 www.altpaynet.com | 📧 info@altpaynet.com 

🌍 Transforming Retail Cross-Border Payments – The Future is Here! Cross-border retail payments have always been a pain point: slow, costly, and opaque. SWIFT is changing that by delivering speed, transparency, and predictability for customers worldwide. Key highlights: ✅ From Days to Seconds – Real-time or near-instant settlements. ✅ Full Transparency – End-to-end payment tracking for customers. ✅ Global Interoperability – Connecting banks, fintechs, and payment providers seamlessly. 💬 Your Voice Matters! What do you think is the biggest challenge in making cross-border retail payments truly seamless? 🔘 Cost 🔘 Speed 🔘 Compliance 🔘 Technology Integration Read the full article here: https://lnkd.in/eCKmcCNB #SWIFT #CrossBorderPayments #RetailPayments #PaymentsInnovation #DigitalTransformation #FutureOfFinance #InstantPayments #FinancialServices

Fintechs are eating banks' lunch in the B2B commercial card space — and the stakes couldn't be higher. With more than $4 trillion in annual spend today and projections to reach $6 trillion by 2029, this isn't a niche market—it's a defining battleground for the future of commercial payments. Fintechs like Brex and Ramp are winning because they've built modern, API-driven, embedded platforms that deliver personalization, integration, and speed. Banks, meanwhile, remain constrained by legacy infrastructure that takes 12–18 months to roll out even modest product updates. But it's not too late. The most significant opportunities—travel, fleet, and virtual cards—are ripe for reinvention. If banks invest in modular technology, creative pricing, and real-time data-driven experiences, they can reclaim relevance and growth. In this next wave of B2B payments, agility—not capital—will determine who leads and who lags.

There’s a $4 trillion opportunity hiding in plain sight. Commercial cards have barely scratched the surface of B2B payments — but that’s starting to change, with fintechs like Ramp, Brex, Aspire, and Pliant rapidly disrupting the industry. As I shared with American Banker, the story isn’t just about banks missing an opportunity. It’s about how they can own it. Most banks already have the customer relationships, trust, and balance sheet to lead in this space. What they’ve lacked is flexibility — the ability to launch new products at speed, configured to meet specific customer use cases, without waiting for legacy systems to catch up (spolier alert - they won't ). That’s where modernization makes all the difference. By layering real-time, API-first infrastructure alongside existing cores, banks can unlock the agility they need to innovate, grow, and better serve their customers — all without disrupting what already works. It’s an exciting moment for commercial cards — and for banks ready to reimagine what’s possible in B2B payments. Grateful to Cheryl Winokur Munk and American Banker for the feature and the chance to share my perspective. https://lnkd.in/gFt7y8S9

Banks vs Fintech > who really holds the cards? The competition between traditional #banks and #fintech companies has intensified, with each bringing unique advantages and challenges to the table. At SmartCard Marketing Systems Inc (OTC:SMKG) its #Walmart vs #Amazon: Banks become Fintechs and Fintechs want to become Banks. Strengths of Traditional Banks: 1. Established Trust: Banks have established reputations and customer trust built over decades, making them a preferred choice for many consumers. 2. Regulatory Compliance: They are heavily regulated, which can assure customers of the safety of their deposits and adherence to legal standards. 3. Comprehensive Services: Traditional banks offer a wide range of services, including loans, savings accounts, and investment products, often with personalized customer service. Advantages of Fintech: 1. Innovation and Agility: Fintech companies often develop innovative solutions faster than traditional banks, utilizing advanced technology to streamline operations and enhance user experience. 2. Lower Costs: Many fintech services come with lower fees than traditional banks, appealing to cost-conscious consumers. 3. Convenience: Fintech apps provide user-friendly interfaces and services that can be accessed anywhere, attracting a younger, tech-savvy demographic. Current Trends: - Partnerships: Many traditional banks are collaborating with fintech firms to leverage technology while maintaining their customer base and offering improved services. - Regulatory Changes: As fintech grows, regulators are adjusting frameworks to ensure consumer protection while fostering innovation. - Customer Preferences: Younger consumers often prefer fintech solutions for their accessibility and convenience, while older generations may lean towards banks for familiarity.