Payments News

On The Web

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How a Silicon Valley Startup Is Trying to Rebrand Payday Loans

“Once every few weeks, Myra Haq withdraws $100 or so from Earnin, an app that lets people borrow small sums of money. “I started using Earnin when I was a minimum wage intern so I could pay for [things like] the bus to work and food,” Haq said. Now that she’s no longer an intern […]
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Deals

Why Mastercard Bought a Point-of-Sale Lending Platform

“As banks, merchants, and even tech companies offer consumers new and different ways to pay for stuff, credit card companies are trying to protect their role as the pre-eminent platform for everyday purchases by offering more buy-now-pay-later options. That’s why MasterCard paid an undisclosed amount this week for the point-of-sale loan platform Vyze, which lets […]
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Fintech Algorithms Discriminate 40% Less Than Traditional Lenders

“Algorithms tend to have a better record. Online financial technology companies discriminate, too, but 40% less than loan officers who make decisions face-to-face, the NBER researchers found. They also found no discrimination from the robots when it comes to loan approvals.”
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Deals

Crypto Interest Platform Compound Lets Lenders Earn More Than 5%

“At a time when high interest savings accounts are languishing at an anemic 2%, Craig Hammell found a way to earn more than 8% this past summer. Instead of storing his money with a bank, the software engineer lent it out to cryptocurrency owners on Compound, an automated lending platform .”
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Toast Launches Toast Capital To Help Restaurants Secure Loans

“Toast has launched Toast Capital so its customers can secure loans, with restaurant-specific quirks in mind, like “seasonality and restaurant profit margins,” according to Tim Barash , chief financial officer at Toast. Toast will offer loans between $5,000 to $250,000 to restaurants that already work within the Toast network.”
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More Borrowers Are Going Underwater on Car Loans

“Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to car-shopping site Edmunds. Those borrowers owed about $5,000 on average after they traded in their cars, before taking on new […]
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On The Wires

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Verishop and Affirm Partner to Enable Customers to Shop Now and Pay Over Time

“Through Affirm’s consumer-friendly alternative to traditional credit cards, Verishop customers now have a simple, no-interest payment option1 allowing them to spread out the cost of a purchase over three easy, monthly payments. Whether a customer is redecorating their home, finding that perfect outfit or maintaining their beauty routine, the partnership with Affirm can help Verishop customers […]