Revolut expands ‘pay by bank,’ Google deal | PaymentsSource

• Key Insights: Revolut is embracing “pay by bank.”
• What’s at Stake: The feature enables payments without requiring a card network. 
• Forward Look: In other news, Global Payments’ new Genius system has landed in the U.K.

Digital banking super app Revolut has added account-to-account payments to its payments gateway, allowing merchants to bypass traditional card networks and accept payments directly from a consumer’s bank account. 

The feature will be available in the U.K., Austria, Belgium, Croatia, Finland, France, Greece, Germany, Ireland, Lithuania, The Netherlands, Portugal and Spain, according to Revolut. 

“The payments landscape is evolving, and merchants are looking for solutions that eliminate fraud and increase optionality,” said Alex Codina, general manager of merchant acquiring at Revolut. “Our new Pay by Bank feature gives them exactly that. We’re empowering businesses to accept the next generation of payments, while offering their customers a secure and convenient payment experience. This can be a game-changer for everyone using our Revolut Gateway.”

The Pay by Bank rollout comes on the heels of Revolut’s  expanded multi-year, multi-million-dollar partnership with Google Cloud.

“Google’s world-leading AI and cloud infrastructure are an incredible asset,” said David Tirado, vice president of global business and profitability at Revolut. “This partnership will empower us to rapidly scale our offerings, deliver even more personalised and valuable experiences to our customers, and continue to outpace the traditional financial sector.” —Joey Pizzolato

U.K. may lift the lid on contactless payments

The U.K.’s Financial Conduct Authority has proposed giving card issuers the ability to set their own limits on contactless payments, a move that could open the technology to larger purchases. The limits could be higher than the current 100 pound ceiling, or about $135.

Contactless limits vary globally, but there has been a move toward loosening restrictions as the volume of contactless payments expands. The technology dates to the introduction of Apple Pay and other mobile wallets in the early 2010s. It began to grow quickly during the COVID-19 pandemic as retailers adopted digital payments. More recently, the growth of biometrics at the point of sale has added security for contactless transactions.

Global contactless payments volume totaled $7.4 trillion in 2024, according to Juniper Research, which noted that volume is on pace to pass $11 trillion by 2027. 

The FCA is accepting comments and consultation on the proposal through Oct. 15. Boosting contactless payments is one of more than 50 measures the regulator is floating as part of a program to encourage digital banking. The FCA said it’s unlikely the individual issuers’ contactless limits will immediately increase, and noted the fraud protections will remain the same. —John Adams 

Bloomberg

Circle bolsters stablecoin processing tech

USDC issuer Circle has signed a partnership with digital asset technology company Fireblocks to add custody and other functions that support stablecoins. Fireblocks’ customers will have access to Circle’s stablecoins and other services, such as the Circle Gateway blockchain transfer portal. Fireblocks recently launched an initiative that connects payment providers, banks, fintechs, and other organizations with stablecoin payment processing. 

Circle’s deal with Fireblocks follows Circle’s IPO and comes as dozens of banks, retailers like Walmart and Amazon, and other firms plot stablecoins, potentially creating fierce competition to issue stablecoins. Circle is also applying for a national trust charter that would enable it to support a broader range of financial services in more direct competition with banks.

“The future of money is programmable, and this collaboration with Fireblocks can make that future real for institutions worldwide,” said Jeremy Allaire, the co-founder, chairman and CEO of Circle, in a release. —John Adams  

Global Payments’ revamped payments system reaches the UK

Global Payments’ strategy to use its “Genius” point of sale system got a boost this week as the platform launched in the U.K. 

The processor is selling a range of restaurant-focused technology, including payments, kitchen management, back office systems, drive through support, digital signage and other products. 

Global Payments launched its Genius point-of-sale system earlier this year, starting with restaurants in late May, with other merchant categories scheduled for the coming quarters. Global Payments in July reported a growth rate in the mid-teens” from April to July, and called Genius a “milestone” in the company’s quest to unify Global Payments’ point of sale systems. Genius is a mix of new payment products and older systems.

“We put our best POS features, and more, under a common platform and brand, which enabled us to offer quick service and fast casual restaurants a single, compelling offering,” said Nick Corrigan, international president for Global Payments, in a release. Analysts say Global Payments faces competition in expanding its point of sale network. “We are encouraged that Global is moving forward with its software-integrated POS, but we believe innovations will prove too little, too late in an increasingly competitive market,” William Blair analyst Andrew Jeffrey said in a July research note. —John Adams  

BNP Paribas, HSBC join blockchain coalition

The Canton Foundation has added BNP Paribas and HSBC to its membership ranks, as the cross-industry consortium builds scale for its distributed finance agenda. 

Canton’s goal is to synchronize payment services and financial services that use distributed ledgers, such as stablecoins and other digital assets. The foundation has attracted more than 30 members to contribute to The Global Synchronizer, which provides critical infrastructure for synchronizing digital assets across permissioned blockchains on the Canton Network.

The foundation’s other members include Goldman Sachs, Hong Kong FMI Services Limited and Moody’s Ratings.

As banks increase their use of blockchains, they are also attempting to build interoperability between distributed ledgers to support a broader range of financial services.

“Participating in this initiative offers a valuable opportunity to collaborate with key industry players as we advance the long-term role of blockchain technologies in regulated finance,” Hubert de Lambilly, head of global markets for continental Europe, Middle East and Africa at BNP Paribas, said in a release. —John Adams  

Ripple inks digital asset custody services deal with BBVA Spain

BBVA is teaming up with Ripple for its retail bitcoin and ether trading and custody service in Spain.

BBVA will use Ripple Custody, the fintech’s digital asset self-custody technology, to power its retail crypto products. 

“Now that the EU’s Market’s in Crypto-Assets regulation (MiCA) is established across Europe, the region’s banks are emboldened to launch the digital asset offerings that their customers are asking for,” said Cassie Craddock, Ripple’s managing director for Europe, in a statement. “BBVA has long been one of the region’s most innovative banks and we’re proud to support its ambitions with the most secure and compliant digital asset technology on the market.”

Ripple says that it already provides custody technology to Garanti BBVA in Turkey and BBVA Switzerland. —Joey Pizzolato

Swift appoints chief product officer

The international payments network Swift is expanding its executive leadership team with the addition of a chief product officer.

Thomas Delaet joined Swift from McKinsey & Company, where he spent 14 years. As CPO, he will be responsible for leading Swift’s product group, including new data and technology solutions and digital assets. 

“Thomas’s leadership and broad expertise working with the financial industry on digital and technology transformation initiatives is a strong addition to Swift as we continue to support the industry’s transition to the new financial ecosystem,” said Swift CEO Javier Pérez-Tasso, in a statement. —Joey Pizzolato

Embedded payments fintech Rainforest closes $29M round

Rainforest, a fintech that provides embedded payment solutions to vertical software platforms, closed a $29 million Series B funding round, bringing the company’s total funding to $57.5 million, according to Crunchbase.

The round was led by early-stage venture capital firms Matrix and Infinity Ventures, with participation from Accel and Tech Square Ventures. 

“Embedded payments are the secret weapon of the best vertical software companies, like Shopify and Toast. It’s not uncommon to see 2-5x increases in revenue, retention, and other metrics once a platform successfully embeds payments,” said Matt Brown, a partner at Matrix and a Rainforest board member, in a statement.

Rainforest plans to use the funds to scale its servicing business, develop products such as tap-to-phone, and launch in Canada, Rainforest Founder and CEO Joshua Silver said in a blog post. —Joey Pizzolato