FinTech IPO Index Sinks 6.3% as Asia Soars but BNPL Firms Decline
Even a surge in Asia-based firms — a continuation of rallies seen in the wake of macro stimulus packages in China — were not enough to boost the fortunes of the FinTech IPO Index.
The overall group was down 6.3% through the week.
As for the names outside the U.S. that had rocketed up, though without company specific news, 9F Group surged 79%, and AMTD Digital gathered roughly 60%, followed by OneConnect, which gained 57.3%.
Alkami’s stock was up 2.7%
As reported, Alkami Technology announced a new partnership with Intrepid Credit Union to give the latter’s members access to new financial tools. Through Alkami’s digital banking platform, which integrates digital banking services including online account opening, payments and financial wellness features, Intrepid can drive better customer engagement and offer a more personalized user experience, per the companies’ release.
SoFi shares inched ahead by 0.9%.
The company said that it launched DSP2.0, an advanced Directed Share Platform (DSP) that offers a modern and streamlined approach to equity program management for companies looking to raise capital in the U.S.
BNPL Names Trim Some Gains
But Sezzle shares were down 16%, followed by Affirm, which was down 7.5% through the past five sessions. Both names gave back some of the gains that come in the wake of rate cuts enacted by the Federal Reserve last month. Sezzle posted an 8-K with the Securities and Exchange Commission detailing the already announced efforts with WebBank.
Separately, Affirm CFO Michael Linford remarked during a podcast that lower interest rates may enable the company to offer 0% interest rates on at least some transactions.
Upstart shares lost 4.8%.
In a Wednesday (Oct. 2) announcement, MIT Federal Credit Union, a full-service, Massachusetts-based credit union serving over 35,000 members, said it partnered with Upstart to provide personal loans to new and existing members. MIT Federal Credit Union started lending as a partner on the Upstart Referral Network in March. Through the network, qualified personal loan applicants on Upstart.com who meet MIT FCU’s credit policies will receive tailored offers as they complete the online member application and closing process.
Paymentus shares lost 1.5%. PYMNTS reported that the billing company launched a partnership with Altera Digital Health.
The new agreement adds Paymentus’ electronic bill presentment and payments platform to Altera’s suite of healthcare IT solutions, the company said on Sept. 26.
Robinhood, with a flat share performance, said this week that it is offering cryptocurrency transfers to European customers amid regulatory pressure in the United States.
The service, “one of the most requested features in the region,” allows customers to deposit and withdraw more than 20 cryptocurrencies, including bitcoin, ethereum and USD Coin, according to a company release. Robinhood Crypto is also offering European customers a 1% match on all crypto deposits for a limited time, paid out in the same cryptocurrency they deposit and subject to a cap of 10,000 euros (about $11,000) per customer.
Doma is being acquired, and its shares will no longer trade in the wake of the go-private deal. Title Resources Group (TRG), one of the nation’s leading title insurance underwriters, announced its acquisition of Doma Holdings on Sept. 27. Additionally, LENX, the strategic investment arm of Lennar, one of the nation’s leading homebuilders, has made an investment to become a minority owner of TRG, as was announced at the end of last month. Doma’s underwriting division, Doma Title Insurance, is now a wholly owned subsidiary of TRG.
The post FinTech IPO Index Sinks 6.3% as Asia Soars but BNPL Firms Decline appeared first on PYMNTS.com.