DD
MM
YYYY

CATEGORIES

PAGES

DD
MM
YYYY

spot_img

CATEGORIES

PAGES

Home Blog Page 5518

PayPal Planned $45 Billion Acquisition of Pinterest Reveals How Empires of the Future Will Win

By
Ndubuisi Ekekwe
-
0

The fundamental construct of the digital economy is that those who control demand will win the future. Because supply is unbounded, value now rests on companies who control demand. The best feature in Facebook is that it has users. The future winners in fintech will be those who control demand, not just the supply of APIs. If you fail to control demand, you have no future in the digital economy.

The Internet has normalized all digital properties. We begin all searches on Google because Google takes us to the best supply (the newspapers or websites). Magically, power has moved to Google which does not supply the contents but it does one critical thing well: it brings order in a world of too much supply. What happens is that Google has normalized all websites who are now competing to be discovered by Google!

On that construct, when Facebook enters any category, it has a chance because on the day of launch, it has millions of users already. PayPal understands that also – to win the future of finance, it needs users, not just relying on making the best financial tech products. 

That is the motivation for that planned $45 billion acquisition of Pinterest, a “buzzy digital pinning site that allows shoppers to save images to digital pinboards and at times purchase from sellers directly”. With this deal, PayPal has another platform to spread its codes and tax users and merchants on transaction fees.

In Harvard Business Review, I have called this a double play strategy, around a “one oasis”. Provided Pinterest grows, PayPal will capture value by processing all the transactions in the platform. Largely, PayPal is paying for a new market. It has to do so because the old model of fintech is now crowded with Stripe and other emergent startups like Afterpay which links directly to bank accounts, disintermediating companies like  PayPal.

Digital payments and online shopping go hand in hand. Now PayPal is trying to unite one with the other.

The Silicon Valley digital payments giant has offered to buy Pinterest, the digital pinboard company that enables e-commerce within its app, in a deal valued at about $45 billion, according to people with knowledge of the discussions. PayPal has offered around $70 a share for Pinterest, the people said, a 25 percent increase from Pinterest’s opening share price on Wednesday.

If completed, the deal would be the largest in the consumer internet industry over the past decade, topping Microsoft’s $26 billion purchase of LinkedIn in 2016 and Salesforce’s $27.7 billion acquisition of Slack last year, according to the data service firm Dealogic. It would also be among the largest deals for PayPal, which was spun off from eBay in 2015 and has snapped up payments companies globally.

Buying Pinterest would underline PayPal’s interest in moving further into e-commerce. In 2019, PayPal agreed to pay $4 billion for the coupon payment platform Honey, which shows people discounts while they shop online. Through Pinterest’s app, people can save images to digital pinboards and buy goods directly through what are known as “buyable pins.”

A Minor Delay On Product Launch – The Texas-Based Digital Bank for Immigrants

By
Ndubuisi Ekekwe
-
0

Good People, I noted here that we would be launching a digital bank with focus on immigrants in the US, Canada, Europe and Australia – and the same bank will support expatriates in all continents. Specifically for Africa, we will make it easier for you to sell to Africa’s  deepest market: African diaspora. When you open an account in our startup, you will get a US bank account which has been visualized within the US banking ordinance. 

The goal here is to reduce the frictions on receiving payment when those in diasporas cannot easily pay you while in Africa. You will like it because you can be paid in a US bank, open US fintech wallets (say Stripe, Paypal, etc), and that payment can also be moved in seconds to your nation. We are launching with support for at least 36 countries.

We are at the last phase of US regulatory approval to go live, and we hope we will do so before Dec 1. Largely, we need to make deposits (like the money you deposit with the Central Bank of Nigeria as it works on your license; the apex bank will return that money later) as the regulator requires. The regulator has approved but is asking for a deposit which must be equity (not loaned).

As I write, Tekedia Capital Syndicate members are reviewing this startup for further investment (you can join the Syndicate here). Once that money is raised, we will do as the US government wants and then go live. We have close to 30,000 users waiting.  

For all those asking, apologies for the delay. We are coming.

Bitcoin Hits $66k All-time High, Buoyed By ETF

By
Samuel Nwite
-
0

The much anticipated new bitcoin all-time high was reached on Wednesday after the cryptocurrency hit a record $66,000, amplifying crypto market value.

Bitcoin rose 3.7% to hit as high as $66,477 on Tuesday, bringing its gain for the year to almost 130%. The largest digital currency by market value gained more than 300% last year and 95% in 2019 after tumbling 73% the previous year.

The new high came following the successful launch of the first US bitcoin futures exchange-traded fund.

“Clearly, the launch of a Bitcoin futures ETF in the U.S. has sent prices soaring to these levels,” said Leah Wald, chief executive at Valkyrie Investments, which has an application out for a futures-based fund. “Traders and investors perhaps see this is precursor to the holy grail — a spot Bitcoin ETF — and their optimism is pouring into the largest cryptocurrency at a furious pace, with all money FOMOing into the trade from all corners of the market.”

Ethereum also rose 7.4% to cross back over the $4,000 level. The world’s second-largest cryptocurrency reached 4,104,61 on Wednesday.

ETF, the ProShares Bitcoin Strategy, which tracks bitcoin futures contracts pegged to the future price of the cryptocurrency, rose about 5% on its first day of trading Tuesday.

Bitcoin has found a place in the hearts of many investors looking for an inflation hedge, and they are betting big wads of cash on it.

“Bitcoin would be a great hedge. There is a plan in place for crypto and clearly it’s winning the race against gold at the moment … I would think that would also be a very good inflation hedge. It would be my preferred one over gold at the moment,” billionaire investor, Paul Tudor Jones told CNBC’s Squawk Box.

Bitcoin’s biggest proponents back controversial arguments that the virtual currency is a store of wealth and a hedge against the most potent threat from inflation in many years.

However, not every crypto investor is impressed, as several people in the market would prefer ETF that tracks spot prices rather than futures. But the ETF was a brilliant idea to many others. Bloomberg reported on the enthusiasm of investors across institutions.

Wall Street

Bank of New York Mellon Corp., Goldman Sachs Group Inc. and Morgan Stanley are among firms offering crypto-related services. Dawn Fitzpatrick, chief investment officer of Soros Fund Management LLC, said her firm holds some coins and that crypto “has gone mainstream.”

At the same time, there is still a long way to go. For instance, SkyBridge Capital founder Anthony Scaramucci said that while there’s a “feeding frenzy” in crypto among about 10% of financial-services firms, the vast majority are hesitant about the asset class.

Over the past few years, a whole new crypto-economy has formed. Non-fungible tokens or NFTs — which allow holders of digital art and collectibles to track ownership — have surged into the limelight.

Decentralized Finance

So has the decentralized finance — DeFi — ecosystem, which allows people to lend, borrow, trade and take out insurance directly from each other, without use of intermediaries such as banks.

With turnover of almost $1 billion, the ProShares fund debut was behind only a BlackRock carbon fund for a first day of trading, the latter ranking higher due to pre-seed investments, according to Athanasios Psarofagis at Bloomberg Intelligence. The total market value of cryptocurrencies exceeds $2.5 trillion.

Bitcoin has come a long way this year, defying China’s crackdown and the apathy stemming from its carbon footprint to record its all-time high. It is expected to surge further in November, as investors seek strong support on $65,000.

African Development Bank, MTN sign $500,000 grant agreement to study women’s access to financial services

By
Amarachi Uche
-
0

The African Development Bank (AfDB.org) has signed a grant agreement for $500,000 with Y’ello Digital Financial Services (YDFS), a fintech subsidiary of MTN Nigeria, to be used for a study into economic, religious, and social factors hampering access to finance for women in northern Nigeria.

The research, which includes a feasibility study, women-focused design and testing, will focus on both agents and customers to provide insights into women’s use of mobile money services, will be funded through the Africa Digital Financial Inclusion Facility (ADFI).

Despite being the continent’s largest economy, 55% of rural Nigerians still lack access to financial services [1]. The rate of mobile money adoption currently stands at 4% [2],  with an agent ratio of 228.8 agents per 1,000 adults [3]. Political instability and conservative cultural norms in parts of Northern Nigeria are thought to present barriers to women’s access to finance. Additionally, 80% of agents in the region are men.

“The African Development Bank, through the Africa Digital Financial Inclusion Facility (ADFI), is delighted to support this project, furthering our work to improve the quality of life for people in Nigeria and contribute to the Sustainable Development Goals, particularly as relates to poverty, and gender inclusion,” said Stefan Nalletamby, African Development Bank Director of Financial Sector Development.

On behalf of YDFS, Usoro Usoro, Chief Executive Officer, said, “We are truly excited about this partnership with the African Development Bank, and the possibilities for advancing financial inclusion in Nigeria, particularly for the traditionally excluded segment of women in Northern Nigeria.”

How the Economies of Africa have compared for the last 60 years

By
John Mc Keown
-
0

This article was prompted by a post I found on LinkedIn. An animation charted the proportion of GDP of the African Continent from 1961 to 2020. The space afforded by the comments section would not be sufficient for my thoughts.

There are a number of observations I would make, mostly about the two top performers over the period, which are South Africa, and of course, Nigeria which is my market and 85% of my LinkedIn Network.

GENERAL

  • – No country other than Nigeria and South Africa has held the pole position at any time between 1961 and 2020.
  • – The only country to never fall out of a podium position (1,2,3) over the entire period, has been South Africa.
  • – Countries to have held podium positions over the period are: Algeria, DRC, Egypt, Nigeria and South Africa.
  • – The only country to hold a podium position, and be completely off the pie chart by 2020 is DRC, ( best position: #2 in 1964 and 15% of the pie).
  • – The animation ends with South Africa relegated to third place. While Nigeria still leads the continent, at 18% it is barely over half its period high of 35% and the trend has been downwards. The combined portion of the pie occupied by other countries is rising. With Egypt share having recovered to 15%, perhaps the lead swapping monopoly of Nigeria and South Africa that has lasted 60 years may soon be over?

NIGERIA

  1. At Independence, Nigeria’s share of African GDP was 14% just over half of continent leader South Africa at 25%
  2. The high point of Nigeria’s African Dominance was 35% of Africa total GDP achieved in 1982. This was in the leadership of Shehu Usman Aliyu Shagari of the ‘Second Republic’
  3. During the years of an Independent Biafra, Nigeria’s contribution to Africa’s GDP was 9-11%
  4. The low point in Nigeria’s contribution to Africa GDP was 6% in 1994. This was under General Sani Abacha. Though to be fair, Abacha had only come to power since November 1993 after overthrowing an Interim Government of Chief Ernest Shonekan, who only led for 3 months. The ‘condition’ of Nigeria inherited at the time would have most likely been down to the military rule of Ibrahim Babangida, who led from 1985-1993.
  5. Nigeria’s share on Abachas departure in 1998 was 9%
  6. Nigeria’s high, post the recovery from 1994, briefly hit 22% in early 2015 in the final few months of the Goodluck Jonathan Presidency, though surprisingly, he did not achieve a second term.
FOCUS ECONOMICS displays both Nigeria and South Africa performance taking a hit in 2016. This was after CBN made the decision to remove the Naira peg with the US Dollar

SOUTH AFRICA

  1. South Africa’s highest position was 29% in 1995, possibly benefiting from the ‘Mandela Effect’.
  2. South Africa’s highest slice of African GDP during apartheid years was at several points in the 1970’s when it intermittently rose to 26% and again 26% in 1992.
  3. South Africa’s highest point post Mandela was 24% in 2005 during the second term of the Thabo Mbeki regime. No leader post Mandela has equaled his high of 29% or even the 26% best of apartheid regimes.
  4. SA finished the period in third place on 13% behind Egypt. This is the lowest share of the continental GDP that South Africa has held for the period of the pie animation. The current President of South Africa is Cyril Ramaphosa who has been in power for 3 years and 9 months.
Illustration from Kenyanwallstreet site from article which claims ‘Africa poised to have USD 3-trillion economy by 2030’ overtly hints major players by featuring Naira and Rand notes

Closing comments:

It’s important to understand that the pie animation represents relative rather than absolute data. This means that without doing anything particularly remarkable, one country can rise position purely because of something bad happening somewhere else.

It can also mean modest improvements  in some countries don’t translate to ranking improvements due to something very remarkable happening somewhere else.

For instance, the ‘Mandela Effect’ a phrase sometimes used to refer to trade and investment benefits South Africa achieved following the end of the Apartheid Regime and the ‘honeymoon period’  the world was having with Nelson Mandela as the new leader of a ‘free’ South Africa.

There would have been nothing any other country in Africa could have done to counter that in terms of competing with SA for trade deals and FDI (Foreign Direct Investment) from outside the continent… at least in the first few years of the Mandela Presidency.

But all honeymoons end!

Links have been added at the end giving timelines of events in some of the countries that have influenced the ranking in the pie animation over time.

For those looking to invest, its also important to understand that choosing a country is a little bit like University Rankings. There are many universities with unremarkable rankings but they have niche expertise in a few very narrow aspects of subject matter or emerging technologies. For someone pursuing a course in these, then an unremarkably ranked university may be second to none.

Equally, Start-up investment destinations are not about overall metrics, they are about the metrics that are particularly important to the specific start-up.

Availability of suitable affordable labour, local demand for products/services, enabling capacity, support willingness and engagement flexibility  of Government Structures and Civic authorities, and other aspects of the business ecosystem – these need to be a fit for the investors intentions.

The animation pie starts a journey with much else to be discovered.

Thanks to Instagram Member ‘piechartpirate’ and to Inez Willeboordse for porting the content to LinkedIn where I got to see it.

 

Alignment of Nigerian and South African leaders with pie animation metrics has been courtesy of Wikipedia.

brainyhistory.com/topics/a/algeria.html

brainyhistory.com/topics/e/egypt.html

brainyhistory.com/topics/c/congo.html

brainyhistory.com/topics/l/libya.html

focus-economics.com/blog/africas-economic-giants-economic-growth-infographic

congo.org.uk/the-economies-in-africa-are-so-disjointed/

kenyanwallstreet.com/africa-poised-us-3-trillion-economy-2030/

 

1...5,5175,5185,519...7,974Page 5,518 of 7,974

© Tekedia. All rights reserved.

Term & Privacy

© Tekedia. All rights reserved.

Term & Privacy