Below are news related to the fintech industry this week.

Inflation Scare or Real inflation?

U.S. consumer price index (CPI) numbers for April were published earlier this week. The CPI was 4.2% higher than the same time last year. Such a rise was previously observed during the 2008 financial crisis when the U.S. was in recession. The April CPI numbers sent the U.S. stock market down. As we wrote in our previous newsletter, the U.S. could only add 266k jobs, the lowest for the year and well below market expectations. …


Below are news related to the fintech industry this week.

General News

Fintech companies PayPal and Square reported earnings this week.

PayPal earnings report

PayPal (PYPL) reported $6.03B revenue with a 31% YoY growth and a net income of $1.1B with a 1206% YoY growth.

Significant highlights from quarterly earnings,

By numbers

  • Total Payment Volume(TPV) of $285 Billion.

-eBay contribution to TPV this quarter was 5.5% of TPV.

-Venmo contribution to TPV of $51.4 Billion or 18% of TPV.

  • The total number of transactions was approximately 4.4 Billion.
  • Total “active accounts” of 392 million with 14.5 million net-net “active accounts” added this quarter.
  • Total merchants in the platform of 31 million with 1.4 …

Below are news related to the fintech industry this week.

Big tech companies reported their quarterly earnings ( GOOGL, MSFT, AMZN, AAPL,FB)

Major tech companies reported their earnings this week. Most tech companies registered in this article except Facebook are well above their pre-pandemic Net Income growth rates. Amazon exhibited the fastest recovery during the lockdown and continues to show tremendous growth rates.


Below are news related to fintech industry this week.

General News

PayPal(PYPL) introduces a couple of new offerings.

Venmo support for cryptocurrency

In our newsletter from earlier this month, we mentioned a new “checkout by crypto” offering from PayPal- the offering helped consumers use cryptocurrencies during the checkout process. This offering was limited to only PayPal U.S consumers.PayPal has now introduced a similar offering on its famous Venmo platform.

Let’s compare and contrast the offerings. Beginning with similarities,

  • Both offerings let its users use one of the following four cryptocurrencies -Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
  • Both offerings leverage PayPal partnership with “Paxos” -A trust company — and use the “crypto brokerage” service…

Below are news related to fintech industry this week.

General News

Bank Earnings

Last week big American banks reported their quarterly earnings. Some of the common sentiments shared by the business leaders in the banking world on earnings call were as follows,

(a) Bullish on economic recovery: Banks expected a faster recovery than previously expected recovery that was stretching into 2022.

(b) Banks released “reserves” boosting their Net Incomes: High liquidity in markets due to lower interest rates has caused borrowers to return the money, which resulted in banks making changes in their books to release the “reserves”.

What are reserves?

Some accounting background…


Background

QR (Quick Response) found its origin in Japan to overcome the limitation of Barcodes. Barcodes solved a significant problem in retail cash registers wherein the cashier could scan the barcode on an item at checkout. The price associated with that item would get displayed, tremendously decreasing the checkout times. Barcodes could store only limited information (20 or so alphanumeric characters), and users went to DENSO CORPORATION, barcode developers at that time, requesting enhancements in barcodes that could store more information.

We’d like the capability to code Kanji and Kana characters as well as alphanumeric ones.

Thus began the QR code…

Fintekcafe

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