The fintech industry is allowing innovators from every corner of the world to have their bright ideas broadcasted on a global stage. Many fintech startups are even challenging long standing financial institutions as some of these corporations are having a difficult time adapting in this fast-paced environment, such as commercial banks like JPMorgan Chase. When Elon Musk announced that he was buying almost €1.3 billion in bitcoin and that Tesla is making plans to accept it as payment in the near future, some of the first companies to comment on how they would be treating cryptocurrencies going forward were Mastercard and Visa. Their statements mainly said that they will be allowing customers to transact using select cryptocurrencies as long as they adhere to a myriad of safety and security regulations. They’ve noted that regardless of their feelings towards cryptos, it’s their responsibility to allow customers to make the financial decisions they desire, and it’s the role of the company to facilitate a safe environment for them to do so if they choose to use crypto. However, now British fintech company TrueLayer is looking to undercut both Mastercard and Visa in their own game by allowing fintech apps that use their service to initiate bank transfers, according to CNBC.
TrueLayer has raised over €58 million in fresh funding in an effort to expand its services on a global level. This is just another example of how investors are willing to fund fintech startups that show tremendous potential, and track records show that although most of these companies take a while to become profitable, the funding allows them to reach an incredible customer base leading to profitability down the road. CNBC states that “TrueLayer let’s fintech apps like Revolut and Freetrade connect with customers’ bank accounts using technology known as APIs, or application programming interfaces. This means users of those apps can then make payments from their bank or view balances and transactions from different accounts.” Some of the investors involved in this most recent investing round are Addition, Anthemis Group, Connect Ventures, and Northzone to name a few. TrueLayer CEO and co-founder Francesco Simoneschi confirmed in a statement something that has become so prevalent during this past year. That the coronavirus pandemic has done nothing but accelerate the growth of the fintech industry dramatically and TrueLayer used the opportunity to expand their services internationally. The shift to manage finances in digital means for consumers has made it much easier for TrueLayer to gain customers much faster than they would otherwise.