PayPal Moves Toward Becoming a Bank for Small Businesses
PayPal has submitted applications to establish an industrial bank in the US, a move that would significantly expand its ability to serve small businesses. If approved, the license would allow PayPal to hold deposits directly and offer more integrated lending and financial products. This marks a strategic shift from being primarily a payments provider to a more full-stack financial services platform. For SMBs, this could mean faster access to credit and simplified money management within PayPalβs ecosystem. The move also signals growing convergence between fintechs and traditional banking. For the wider fintech sector, it underscores how scale players are pushing deeper into regulated financial infrastructure.
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Payment reconciliation involves several steps that help ensure the payments recorded in the financial statements are consistent with the payments made or received. The exact process varies from business to business, but generally includes the following steps:
πΉ Gather data
Collect all the relevant financial documents and records, such as bank statements, invoices, receipts, and the records in the accounting system. You will use this data to verify the accuracy of the payments.
πΉ Match transactions
Compare the records from the bank statements with the entries in the accounting system. Ensure that the dates, amounts, and descriptions of the transactions match.
πΉ Identify discrepancies
During the matching process, you might find transactions that donβt align. These discrepancies might come from differences in timing, errors, or fraud. Make a list of these discrepancies for further investigation.
πΉ Resolve discrepancies
Investigate the discrepancies to determine their causes. This could involve contacting the issuing bank, checking the original transaction documents, or reviewing the accounting entries. Once you have identified the reasons for the discrepancies, make the necessary corrections or adjustments in the accounting records.
πΉ Record adjustments
Sometimes, you may find that certain transactions are recorded incorrectly in the accounting system or are missing entirely. Record any adjustments needed to reconcile the account, such as bank fees, interest earned, or correcting errors.
πΉ Verify balances
After you have made all the adjustments, verify that the adjusted balance in the accounting records matches the ending balance on the bank statement.
πΉ Document the process
Curated News
π³ Payments
Stripe Unveils Agentic Commerce Suite for AI-Driven Sales
Stripe has launched a new Agentic Commerce Suite designed to let AI agents discover products, negotiate, and complete transactions autonomously. The move positions Stripe at the center of emerging AI-native commerce workflows.
Source
Ottu and Mastercard Partner to Accelerate Digital Commerce in the GCC
Ottu has signed a strategic partnership with Mastercard to support digital commerce growth across the GCC. The collaboration focuses on improving payment orchestration and merchant acceptance in the region.
Source
Square Tests Cash Rounding as Penny Production Ends
Square is piloting cash-rounding functionality in response to the end of penny production. The update aims to help merchants handle cash transactions smoothly without operational disruption.
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π¦ Banking
Monzo Acquires Habito to Strengthen Mortgage Offering
Monzo has acquired mortgage broker Habito, deepening its push into home finance. The deal supports Monzoβs ambition to become a primary bank for its customers.
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Starling Bank Expands SaaS Unit Engine With New HQ
Starling is embarking on a hiring spree as its SaaS arm, Engine, moves into a new headquarters. The expansion highlights growing demand for banking-as-a-service platforms.
Source
π§ Fintech
Klarna Launches Open Standard for Agentic Commerce
Klarna has introduced an open standard to make products discoverable by AI agents. This positions Klarna at the forefront of AI-led shopping and next-generation commerce.
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Informed.IQ Raises $63M to Scale AI Loan Verification
Informed.IQ has secured $63 million to expand its AI-powered loan verification tools. The funding reflects rising demand for automation in credit and mortgage processes.
Source
CapRelease Secures $36M to Expand Home Equity Solutions
CapRelease has raised $36 million in combined debt and equity financing. The capital will support growth in alternative home equity products.
Source
πͺ Crypto
RedotPay Raises $107M in Series B to Scale Crypto Payments
Hong Kong-based RedotPay has closed a $107 million Series B round. The funding will support global expansion of its crypto payments platform.
Source
Exodus Joins PayPal in Launching USD Stablecoin
Crypto wallet Exodus has launched a USD-backed stablecoin, following PayPalβs move into the space. The development highlights growing competition in regulated stablecoins.
Source
Tether Backs Stablecoin Payments Firm Speed in $8M Round
Tether has invested in Speed, a stablecoin payments startup. The deal reinforces Tetherβs push into real-world payment use cases.
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Visa Launches Stablecoin Settlement for US Banks
Visa has introduced stablecoin settlement capabilities for US banks, marking a major step toward blockchain-based payments. The move signals increasing institutional adoption of stablecoins.
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FTC Orders Nomad Operator to Repay Users After $186M Hack
The FTC has compelled the operator of Nomad to repay users following a $186 million crypto bridge hack in 2022. The case sets a precedent for consumer protection in crypto.
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Bitcoin Treasury Firm KindlyMD Faces Nasdaq Delisting
KindlyMD is at risk of Nasdaq delisting after its stock fell 99%. The situation underscores volatility and governance risks in crypto-linked public companies.
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π WealthTech
Duco and Phoenix Group Modernise Asset Management Data
Duco has partnered with Phoenix Group to modernise data reconciliation across asset management operations. The collaboration aims to improve efficiency and data accuracy.
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π Regulation
FCA Confirms Commercial VRP Scheme for 2025
The UKβs FCA has announced that a commercial Variable Recurring Payments scheme will launch in 2025. This is a major milestone for open banking-powered payments.
Source
Aspire Hits Key Regulatory Milestones Across Australia, EU and US
Aspire has announced major regulatory approvals supporting its global expansion. The milestones strengthen its position as a cross-border fintech platform.
Source
𧩠Other
AMINA Bank Launches Web3-Native Partnership Programme
AMINA Bank has unveiled a Web3-focused partnership programme connecting startups with 17 specialist partners. The initiative aims to accelerate institutional adoption of digital assets.
Source
Sutherland and ComplyAdvantage Launch AI-Native FinCrime Platform
Sutherland and ComplyAdvantage have introduced a unified, AI-native financial crime compliance solution. The platform targets increasingly sophisticated fraud and AML threats.
Source
Equifax Launches Tools to Support Motor Finance Redress
Equifax has introduced new solutions to help lenders manage motor finance redress requirements. The tools aim to reduce compliance risk and operational complexity.
Source
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