Payments
Payments company Nium has acquired cryptocurrency digital wallet business Cypher to further develop crypto services for digital transactions, following its March addition of stablecoin services that allow clients to issue Visa and Mastercard cards. In an interview, CEO Prajit Nanu explained that stablecoins are gaining legitimacy and that the Cypher acquisition will help Nium turn the consumer company into APIs for on-chain financial services. Nium, which has raised $339 million, serves banks, corporates, fintechs, payroll companies, and marketplaces. Nanu said Nium focuses on moving money efficiently on bank networks rather than card acquiring, sees massive opportunity in real-time payments like FedNow, and plans more acquisitions, particularly in Latin America and Africa where it aims to strengthen its presence.
Cross-border payment company Nium continues to make strides in the stablecoin space: in March, it launched a stablecoin card issuance platform supporting Visa and Mastercard networks, and this month it acquired crypto wallet business Cypher. CEO Prajit Nanu stated that the company will strengthen its presence in Latin America and Africa through acquisitions and is optimistic about the cross-border application prospects of the real-time payment system FedNow.
Fintech Ramp and payments processor FIS are advancing their use of artificial intelligence. Ramp launched a spend management tool to help finance teams track and control corporate AI expenses, including token usage from providers like OpenAI, Anthropic, and Gemini. FIS is participating in Anthropic's Project Glasswing cybersecurity initiative, testing the Mythos 5 model to protect its payments infrastructure. These moves address the growing financial and security challenges posed by AI adoption.
Ramp and FIS each announced new moves in artificial intelligence last week: Ramp introduced an AI token spending control tool to help finance teams monitor AI-related expenses, while FIS joined Anthropic's Project Glasswing cybersecurity program to test its Mythos 5 model to enhance payment system security.
Stripe has reportedly partnered with Advent International to bid $53 billion for PayPal Holdings, a move that could create a major digital payments processor with enhanced capabilities in stablecoins and artificial intelligence. The bid, reported by Reuters, follows an initial approach in April. Analysts consider the offer credible given Stripe's $159 billion valuation and Advent's $100 billion in assets under management. While Stripe and PayPal overlap in payment processing, the combined entity could benefit from PayPal's brand and Venmo's consumer base, though questions remain about strategic fit. The deal would take PayPal private with equal ownership. PayPal has struggled with growth and recently replaced its CEO, while Stripe has become an international juggernaut. Analysts suggest the combination could unlock value in under-monetized businesses like Venmo and bolster merchant offerings for AI-driven commerce.
According to Reuters, Stripe has teamed up with Advent International to acquire PayPal for $53 billion. Analysts believe that if this bid succeeds, it will create a digital payment giant with strong capabilities in stablecoins and artificial intelligence.
Fintech Bottomline has added stablecoin capabilities to its CFO suite, allowing corporate finance teams to incorporate digital dollar transactions into existing payment and treasury workflows. The new features let finance teams send, receive and manage stablecoins while establishing approvals, controls and audit processes. The move reflects growing interest in stablecoins as a payment rail, with companies like Stripe, Visa, Mastercard and PayPal launching related initiatives, and follows the Genius Act's establishment of a federal framework for dollar-backed payment stablecoins. Bottomline said the capabilities allow companies to explore stablecoin payments within the same controls, visibility and governance frameworks they use for corporate finance operations.
Fintech company Bottomline announced on Monday that its CFO suite now includes stablecoin capabilities, allowing corporate finance teams to send, receive, and manage stablecoins within existing payment and treasury management workflows, and to establish approval, control, and audit processes.
The Federal Reserve's FedNow instant payment system has made significant progress three years after its launch: the number of settled payments jumped 85% quarter-over-quarter in the second quarter, with 1,800 institutions connected, covering about half of U.S. savings and checking accounts. Although the U.S. still lags behind countries like India and Brazil in real-time payments, industry experts believe it has moved past its lagging phase. However, the system still faces challenges in sender-side participation, cross-bank penetration, and federal agency adoption.
The Federal Reserve's FedNow instant payments system saw settled payments jump 85% in Q2 compared to Q1, with 1,800 banks and credit unions now participating, including seven of the top 10 U.S. banks. However, only about a fifth of U.S. financial institutions have signed up, and many only receive payments rather than send them. The Fed is proposing regulatory changes to enable cross-border payments and is pushing use cases like insurance payouts and earned wage access, while industry experts suggest government adoption could spur further growth.