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Despite $75B in VC Investments in Q4, Startups Struggle to Secure Funding

Venture capital investment in U.S. startups surged to $74.6 billion in the fourth quarter of 2024, a significant rise from the $42 billion average...
HomePlatformsDigital BankingMonzo, the UK digital bank, reaches a valuation of $5 billion following...

Monzo, the UK digital bank, reaches a valuation of $5 billion following its latest funding round

In this week’s global payments news roundup, Monzo secures a significant investment of $430 million to fuel its expansion plans in the U.S., with Alphabet’s CapitalG among the key investors. This infusion brings Monzo’s valuation to $5 billion, marking a remarkable turnaround from its previous valuation of $2 billion in 2022. Monzo, which achieved profitability in 2023, aims to renew its U.S. market ambitions, this time seeking a partnership instead of pursuing a banking license.

Meanwhile, Stripe introduces Tap to Pay technology for iPhone in the U.K., enabling businesses to accept contactless payments without additional hardware. This move follows Stripe’s successful implementation of Tap to Pay in the U.S. The technology, also known as softPOS, offers a low-cost payment option, particularly beneficial for small businesses and sole proprietors. Banks like TD Bank and JPMorgan Chase are incorporating Tap to Pay into their mobile banking apps to expand merchant acquiring services.

In Ireland, the Central Bank expresses concerns over the slow adoption of payment innovations in the country’s banking system. Despite the availability of instant payments infrastructure since 2017, material providers have yet to implement it fully. Deputy Governor Vasileios Madouros emphasizes the need for accelerated adoption of real-time payments and open banking initiatives to ensure Irish consumers and businesses can benefit from these advancements. Additionally, Madouros underscores the importance of preserving access to cash and enhancing security and resilience in Ireland’s payment ecosystem amidst its evolution into a fintech hub.

These developments underscore the dynamic landscape of global payments, with digital banks, payment processors, and regulatory bodies navigating opportunities and challenges to drive innovation and financial inclusion.