New research from KPMG International is urging banks and retailers to form strategic partnerships—or risk falling behind—as businesses attempt to keep up with the rapid pace of change in the payments space.

The report, Partnering for payment modernization by KPMG International, includes responses from 500 banks and 500 retailers to assess their progress on payment modernization. It identifies that while costs are high and modern technology continues to disrupt; a better ecosystem of partnerships between banks, retailers, technology providers and regulators can help improve operations and enhance the payments experience for customers.

The survey reveals that 54 percent of retailers believe that payment modernization is crucial to the future of their business, including delivering major efficiency and operational gains. However, just over half (53 percent) of retailers believe that their banks understand their payment modernization goals, with 45 percent saying their banks are proactively delivering payment solutions tailored to their needs. With the average retailer planning to increase modernization budgets by 2.5 percent over the next year, there is scope for more cohesion and development in the area. Banks don’t disagree, with 51 percent believing that the future winners in payments will be those with the best ecosystems. 60 percent of banks also indicate an increase in spending this year, with 21 percent reporting expected increases of five to nine percent over their existing budgets.

Furthermore, it was found that common goals across both sectors include the replacement of legacy payment infrastructure, enhancing fraud prevention and meeting customer expectations. High implementation costs and budget constraints were noted as the top barrier for those starting out on their payment journey (66 percent in banking and 69 percent in retail), while 62 percent in the banking sector also noted outdated legacy infrastructure and technical debt as a major frustration. As they mature their payments modernization capabilities, each sector highlighted meeting customer demand as the main concern (41 percent of banking leaders and 35 percent of retail leaders).

Isabelle Allen, Global Head of Consumer, Retail and Leisure at KPMG International, said: “The quest by consumers for ever faster, lower friction and more secure payment options is relentless and fueling innovation and disruption. Banks and retailers cannot afford to work in isolation or indulge in traditional vendor-customer relationships. The future of payments will likely be defined by a broader ecosystem which extends beyond banks and retailers, to include technology providers, regulators, fintech startups and consumers themselves. Success should be measured by the way companies access new technologies, reduce costs, share expertise, fill skill gaps, accelerate time to market, and mitigate risks.”

Investing in the future of payments

The importance of modernizing payment systems is reflected in the level of capital now being channeled into these programs. The data indicates that banks spent an average of US$96.9 million on payment modernization over the past fiscal year, demonstrating the magnitude of the transformation underway across the industry. Full-service and corporate banks lead the investment charge, allocating US$151.1 million and US$146.7 million, respectively.

On the retail side, hypermarkets and warehouse clubs report the highest levels of investment due to their high-volume, low-margin models, which rely on fast, efficient checkout processes. Online retailers also invest heavily to support their digital business models. At the same time, more traditional segments (such as department and specialty stores) invest less, likely reflecting limited budgets and customer preferences. Some of the biggest increases over the next year will be invested by those seeking to catch up; department and discount stores will boost spending by over three percent, while supermarkets are targeting increases of nearly four percent.

Modern technology is a key disruptorThe report highlights the length to which modern technology, mainly AI and digital currencies, are disrupting payments systems and processes. It states that in three years, the lion’s share of banks will be using AI-enabled biometrics to secure payments and agentic AI to process transactions autonomously. AI is also expected to catapult fraud detection to new levels, with 85 percent of banks saying they will turn to AI for instant risk resolution. Seventy-eight percent of respondents also noted the use of behavioral and contextual data to create personalized services, and 71 percent noted that extracting insights from payment data for pricing and liquidity decisions will be the top AI uses that will grow the fastest over the next three years.

In addition, 60 percent of banks are currently upgrading core systems to support programmable money and digital ledgers, with 76 percent looking to do this over the next three years. The banking industry will also focus much of their attention on using Central Bank Digital Currencies (CBDCs) for atomic settlement for SMEs, alongside efforts to establish stablecoin and token fintech platforms.

Harnessing regulatory shifts

Rather than viewing compliance as a cost or constraint, the report finds that leading retailers are harnessing regulatory shifts to advance their growth strategies. Seventy-nine percent of the leaders (versus 37 percent of those just beginning their modernization journey) say they collaborate with regulatory bodies to help shape effective regulations that foster innovation. Leaders are also highly focused on implementing a range of payments regulations. They are particularly ahead of beginners in anti-fraud regulations and those for new payment types, such as digital wallets and BNPL (Buy Now, Pay Later). The data also suggests they are making more progress meeting international standards such as ISO 20022.

Geoff Rush, Global Head of Banking and Capital Markets at KPMG International, said: “With the rise of digital currencies, it is increasingly clear that the future of payments lies in dynamic and value-driven ecosystems and partnerships — banks, fintechs, retailers and tech companies, for example — where banks play a key orchestration role in providing a variety of services on top of advanced technology and modern payment infrastructure. Such alliances amongst these sectors should be encouraged by shared goals around operational efficiency, fraud prevention and regulatory compliance. The big question is, who will be the first to tie up some of these strategic partnerships and really differentiate themselves?”

The post Why Strategic Partnerships Set to Reshape Payments Industry Says KPMG appeared first on European Business & Finance Magazine.

Wero has signed 43.5 million users in its first year and is launching e-commerce payments in 2026. Combined with the digital euro vote and a new euro stablecoin, Europe’s breakup with Visa and Mastercard is accelerating.” (210 chars — trim to:)

“Wero has 43.5 million users after one year. E-commerce payments launch in 2026, iDEAL is migrating, and the European Parliament just backed the digital euro. Europe’s payments breakup with Visa and Mastercard is real.” (198 chars)

Quick Answer: Europe’s push to break its dependence on Visa and Mastercard is accelerating on three fronts. Wero, the pan-European digital wallet backed by 16 banks, has reached 43.5 million registered users and processed over €7.5 billion in transfers in its first year. E-commerce payments go live in 2026. In parallel, the European Parliament voted on 10 February to back the digital euro for a 2029 launch, and a consortium of 11 European banks is building a euro-backed stablecoin. Together, these initiatives represent the most coordinated challenge to US payments dominance in decades.

When EBM first reported on Europe’s $24 trillion breakup with Visa and Mastercard, the question was whether the ambition could translate into adoption. The early data suggests it can.

Wero, the digital wallet built by the European Payments Initiative, has signed up 43.5 million users across Germany, France and Belgium in its first twelve months of operation. More than 100 million transactions have been processed, totalling over €7.5 billion in transfers. For a system that launched in mid-2024 with peer-to-peer payments only, those figures represent meaningful traction — not a pilot, but a payments network building real scale.

The next twelve months will determine whether Wero can move from person-to-person transfers into the far larger and more commercially significant world of online shopping and in-store payments.

E-Commerce Is the Real Test

Peer-to-peer transfers prove the technology works. But the revenue — and the threat to Visa and Mastercard — sits in e-commerce and point-of-sale transactions. That is where the card networks earn their fees, and where European merchants pay the toll.

Wero’s e-commerce functionality launched in Germany at the end of 2025 and is rolling out across Belgium and France in 2026. The first online retailers are already live. In France, Air France, E.Leclerc, Orange, Veepee and Dott have signed agreements to accept Wero payments. The French government’s tax authority, the DGFIP, has also announced plans to integrate Wero as a payment method for public services — a signal of institutional confidence that goes beyond the private sector.

NFC-enabled point-of-sale payments — allowing consumers to tap and pay in physical shops — are scheduled for 2026 and 2027. If Wero can deliver a consumer experience comparable to Apple Pay or contactless card payments, it will compete directly with the infrastructure that underpins Visa and Mastercard’s European revenues.

The Network Is Expanding

Two new countries join in 2026. Luxembourg goes live in June. In the Netherlands, the migration from iDEAL — the country’s dominant online payment system — to Wero begins with a co-branding phase in early 2026 and is expected to be fully complete by the end of 2027. That means every Dutch merchant currently accepting iDEAL will need to transition to Wero, effectively delivering an entire national payments market to the European system.

The partnership between EPI and the EuroPA Alliance, signed in late 2025, extends Wero’s potential reach to 15 countries and more than 382 million people. Revolut joined EPI in June 2025, bringing its massive European customer base into the network. N26 signed in December 2025, planning to offer Wero in Germany, France and the Netherlands by the second half of 2026. Austrian banks have also signalled support, with Payment Services Austria confirming backing for the initiative.

This matters because payments networks live or die on scale. Merchants accept payment methods that consumers carry. Consumers adopt methods that merchants accept. Breaking the Visa-Mastercard loop requires reaching a critical mass of both — which is precisely why Europe’s fintechs have been building alternative payment rails for years.

Three Fronts, One Strategy

What makes this moment different from previous European attempts at payments independence is the convergence of three parallel initiatives.

First, Wero is delivering commercial-grade infrastructure with real users and real transactions. Second, the European Parliament voted on 10 February to back the digital euro — a state-backed central bank digital currency targeting a 2029 launch. Third, a consortium of 11 European banks is developing a euro-backed stablecoin to compete with dollar-denominated tokens in the digital asset space.

Each addresses a different layer of the payments stack. Wero targets everyday consumer and merchant transactions. The digital euro provides a public, sovereign settlement layer. The stablecoin competes in cross-border and crypto-native markets. Together, they represent the most coordinated effort to build European-owned financial infrastructure since the creation of SEPA.

The Risks Haven’t Disappeared

Sceptics point to Europe’s long history of fragmented payments initiatives that promised scale but never delivered. Wero must still prove it can convert 43 million peer-to-peer users into habitual e-commerce and in-store customers. The iDEAL migration in the Netherlands will be a critical test — forced transitions create friction, and friction creates backlash.

There is also the competitive reality. Apple Pay, Google Pay and PayPal are deeply embedded in European consumer behaviour. Convincing shoppers to switch to a less familiar system requires not just functionality but a meaningfully better experience — lower fees, faster settlement, stronger consumer protections.

And the broader European payments landscape remains fragmented. Southern and Eastern European markets are largely absent from Wero’s current roadmap. Until the system reaches Spain, Italy, Poland and the Nordics, it remains a Western European project with continental ambitions.

The Direction Is Clear

None of this is guaranteed to succeed. But the trajectory has shifted. A year ago, Europe’s payments sovereignty agenda was a policy discussion. Today, it has 43.5 million users, €7.5 billion in transfers, parliamentary backing for a digital currency and a growing coalition of banks, fintechs and governments pulling in the same direction.

The breakup with Visa and Mastercard has not happened. But the alternative infrastructure is no longer theoretical. It is live, it is growing, and in 2026, it enters the market that actually matters: the one where merchants and consumers spend money.

The post Europe’s Payments Disruptor: How Wero Scaled to 43 Million Users appeared first on European Business & Finance Magazine.

The Stockholm-founded company has tripled its valuation in four months and grown nearly 9x in under a year, as law firms race to embed artificial intelligence into their workflows before competitors do it first

Legora, the Swedish legal AI startup, is in talks to raise a new funding round that would value the company at $6 billion — tripling its valuation just four months after its last raise, according to Bloomberg.

The round has not been finalised and the amount being raised remains unclear, but it is expected to be led by an existing investor. If it closes, it would cap one of the most extraordinary growth trajectories in European startup history: Legora was valued at $675 million in May 2025, hit $1.8 billion by October, and now stands at $6 billion — a nearly ninefold increase in under a year.

Founded in 2023 by Max Junestrand, August Erseus, and Sigge Labor, Legora builds a collaborative AI platform designed to help lawyers research, review, draft, and advise. The platform now serves more than 600 law firms and in-house legal teams across 50 markets, up from 250 firms in 20 markets as recently as May. Its client list includes some of the world’s most prestigious firms, among them Linklaters, Bird & Bird, and Cleary Gottlieb.

The company has raised $266 million to date across six rounds, backed by a roster of top-tier investors including Bessemer Venture Partners, ICONIQ Growth, General Catalyst, Andreessen Horowitz, Benchmark, Redpoint Ventures, and Y Combinator.

The speed of Legora’s ascent reflects the extraordinary pace at which legal AI is being adopted. Law firms, traditionally among the slowest industries to embrace technology, are now racing to integrate AI into their workflows — driven partly by client pressure, partly by competitive anxiety, and partly by the sheer productivity gains the tools offer. Contract review, due diligence, legal research, and document drafting — tasks that once consumed thousands of billable hours — can now be completed in a fraction of the time.

But the valuation also raises questions. Analysis from Best Practice AI estimates that Legora’s $6 billion price tag would represent roughly 260 times its current annual recurring revenue of approximately $23 million — or around 150 times even if the company hits its reported $40 million ARR target for this year. For context, best-in-class SaaS companies typically trade at 10 to 15 times revenue. The gap suggests investors are pricing in explosive future growth, but also that the valuation is heavily dependent on strong renewal rates and continued expansion within existing accounts.

The timing of the raise is notable. It comes less than two weeks after Anthropic, the AI company behind Claude, launched a legal plugin that rattled public markets. The announcement triggered a sharp sell-off in shares of data and legal services companies, with Swedish legal information provider Karnov falling by double digits in a single session. A Barclays survey subsequently identified the legal services sector as particularly vulnerable to AI-driven disruption.

For Legora, the Anthropic move appears to have been more catalyst than threat. CEO Junestrand responded on LinkedIn by drawing a distinction between a standalone plugin and what he described as a collaborative, matter-centric, production-grade platform — suggesting that depth of integration, not raw AI capability, is what matters in legal workflows.

Legora is not alone in the space. Rival Harvey, also backed by top-tier venture capital, is reportedly raising $200 million at an $11 billion valuation. Between them, the two companies now account for a combined $17 billion in anticipated valuation — a remarkable figure for a sector that barely existed three years ago.

Whether these valuations prove justified will depend on whether legal AI can move from pilot programmes to firm-wide adoption, and whether clients renew once the novelty fades. For now, the money is betting they will.

The post 675 Million to $6 Billion: How Legora Became Europe’s Fastest-Growing Company appeared first on European Business & Finance Magazine.

Brazil’s fintech giant just secured US bank approval — and now the fight for digital banking supremacy moves to the world’s most competitive market

Quick Answer

Is Nubank bigger than Revolut? Yes. Brazil’s Nubank is currently valued at approximately $90 billion with 127 million customers, compared to Revolut’s $75 billion valuation. Nubank received conditional US bank charter approval in January 2026 and plans to launch American operations within 18 months. Revolut has yet to complete its IPO. Both fintechs are racing to become the dominant global digital bank, with the US market emerging as the decisive battleground.

The race to become the West’s most valuable digital bank has reached its most critical phase. Two fintech giants — one forged in the chaos of Brazilian banking, the other in post-Brexit London — are converging on the same prize: the United States.

Nubank has drawn first blood. The São Paulo-based neobank last week secured conditional approval from the Office of the Comptroller of the Currency to establish a US national bank, positioning the $90 billion company to launch deposit accounts, credit cards, lending and digital asset custody for American consumers within 18 months.

For investors tracking the global fintech landscape, this approval reshapes the competitive calculus entirely.

The Tale of the Tape

The numbers tell a striking story of divergent paths to similar destinations.

Nubank, founded in 2013 by Colombian entrepreneur David Vélez and Brazilian co-founder Cristina Junqueira, has built a customer base of 127 million across Brazil, Mexico and Colombia. The company went public on the New York Stock Exchange in 2021 and has watched its valuation climb to roughly $90 billion — making it Latin America’s most valuable financial institution, ahead of established giants like Itaú Unibanco and Banco Bradesco.

Revenue hit $4.2 billion in the third quarter of 2025, representing 39% year-over-year growth. Profitability has followed: Nubank has delivered increasing quarterly profits while maintaining an activity rate exceeding 83% — a metric that proves customers actually use the platform rather than simply downloading the app.

Revolut, founded two years later in London, has taken a different route. The British challenger bank claims over 50 million customers globally and a $75 billion valuation following its most recent funding round — a two-thirds increase over the past two years. Yet Revolut remains private, with an IPO perpetually on the horizon but never quite materialising.

The valuation gap matters. At $90 billion versus $75 billion, Nubank has established clear leadership in the race for digital banking supremacy. But valuations shift, and the American market could determine which company ultimately prevails.

Why the US Matters More Than Anywhere Else

Both fintechs have conquered their home regions. Nubank dominates Latin America’s largest economy; Revolut has established itself as Europe’s fintech champion. But neither market offers the scale, profitability and prestige that comes with succeeding in the United States.

American banking remains the world’s deepest profit pool. Despite — or perhaps because of — decades of consolidation, the sector generates returns that European and Latin American banks can only envy. Customer acquisition costs are high, but lifetime values are higher.

For Nubank, the US expansion represents a transformation from regional champion to genuine global technology company. As Vélez told the Financial Times: “The next decade is going to be around how do we go from being a Brazil bank to a global technology company that happens to be in financial services.”

The ambitions extend beyond America. Vélez has signalled plans for markets “even beyond the Americas over the next 12 to 24 months” — suggesting Nubank sees the US charter as a template for worldwide expansion.

For companies analysing digital banking business models, Nubank’s progression from Latin American disruptor to aspiring global institution offers a case study in strategic evolution.

The Regulatory Hurdle Nubank Just Cleared

Securing a US national bank charter is notoriously difficult. Foreign institutions face particular scrutiny, with regulators examining everything from capital adequacy to anti-money laundering controls to technological infrastructure.

Nubank submitted its application on 30 September 2025 and received conditional approval 121 days later — a timeline that legal advisors described as a “strong signal” that the OCC has streamlined its historically slow-moving process.

The conditional approval moves Nubank into the bank organisation phase. The company must now satisfy specific conditions, secure additional approvals from the Federal Deposit Insurance Corporation and the Federal Reserve, fully capitalise the new institution within 12 months and launch operations within 18 months.

Cristina Junqueira, Nubank’s co-founder, will serve as CEO of the US subsidiary. Roberto Campos Neto, former president of Brazil’s Central Bank, has been appointed chairman of the board — a governance choice designed to signal regulatory credibility.

The company plans to establish hubs in Miami, the San Francisco Bay Area, Northern Virginia and the North Carolina Research Triangle — a geographic footprint that targets both Latin American diaspora communities and technology talent pools.

Revolut’s American Challenge

Revolut’s US ambitions have proven more complicated.

The company has offered American customers a limited product set for years, but a full banking licence has remained elusive. Revolut applied for a US bank charter in 2021 — and continues to wait. The contrast with Nubank’s relatively swift approval highlights how regulatory outcomes can diverge dramatically based on factors ranging from application quality to timing to political environment.

Revolut’s pending IPO adds another layer of complexity. Going public would provide capital for aggressive expansion but also subject the company to quarterly earnings pressure that might constrain the patient investment required to build a US banking franchise.

For those following European fintech expansion strategies, Revolut’s American struggles underscore how regulatory barriers can neutralise technological advantages.

What Nubank Will Offer American Customers

Once fully approved, Nubank’s US operations will include deposit accounts, credit cards, lending products and — notably — digital asset custody.

The crypto offering distinguishes Nubank from traditional banking entrants and signals intent to capture younger, digitally native customers who have embraced both neobanks and cryptocurrency. This positioning aligns with regulatory shifts under the current US administration, which has adopted a more permissive stance toward digital assets.

Nubank’s core proposition — low fees, intuitive mobile interfaces and rapid customer service — will face its sternest test against American incumbents and domestic challengers like Chime, SoFi and Marcus by Goldman Sachs. Unlike Latin America, where traditional banks remained wedded to high-fee, branch-heavy models, US digital banking is already fiercely competitive.

The company’s track record suggests confidence is warranted. Nubank has consistently demonstrated ability to acquire customers efficiently, cross-sell products effectively and operate at costs that legacy banks cannot match. Whether these capabilities transfer to a developed market remains the central question.

The Bigger Picture: Fintech Goes Global

Nubank’s US expansion and Revolut’s continued global push reflect a maturing fintech industry where regional dominance no longer satisfies investor expectations.

The first generation of digital banks disrupted domestic incumbents. The second generation must prove these models can scale across borders, regulatory regimes and customer cultures. Those that succeed will join the ranks of truly global financial institutions; those that fail will remain large but ultimately limited regional players.

For Nubank, the stakes could not be higher. Success in America would validate the thesis that digital-first, customer-centric banking represents the future of financial services everywhere. Failure would suggest that emerging market growth stories face hard ceilings when confronting developed market competition.

Vélez appears undaunted. The company’s conditional approval arrived alongside announcement of a Formula 1 partnership with Mercedes-AMG Petronas — the kind of global brand-building exercise that signals ambitions extending far beyond Brazil.

The race between Nubank and Revolut will ultimately be decided by execution rather than valuation. But with US regulatory approval now in hand, Nubank has established an early lead that Revolut must answer.

The post Nubank vs Revolut: Who Will Win the $90bn Battle for Global Banking? appeared first on European Business & Finance Magazine.

Tim Carson, CFO at Platcorp

Africa has long been a staple of impact investment discussions. But look at the data, and you’ll see this conversation has yet to convert to capital. Despite the continent’s prominence in impact investing narratives, the money flowing in is still relatively low. This disconnect between perception and reality can be a problem, discouraging investors who believe the region already ‘has enough’. Yet it’s also an opportunity. A dollar can go a very long way in Africa – especially when it’s funding local fintech operators.

Africa’s capital gap

Join a conversation on impact investing and within two minutes the word ‘Africa’ will likely come up. The continent is often held as an impact investment case study, so you’d be forgiven for thinking it’s flush with funding. But the statistics tell a different story. According to the Global Impact Investing Network’s State of the Market 2025 report, based on its 2025 Impact Investor Survey, Sub Saharan Africa represents 10% of surveyed impact assets under management. Derived by adding the data for Western Africa (2%), Eastern Africa (3%), Southern Africa (4%), and Middle Africa (1%) from the report’s regional allocations, it shows the area may attract much talk, but this doesn’t fully translate to investment. What’s increasingly become apparent is there is a persistent gap between the prominence of Africa in impact investing conversations and the proportion of capital actually deployed.

There’s a reason Africa is so often cited: the case for investment is clear. Africa has the youngest population in the world, with 70% of Sub Saharan Africa under the age of 30. While other areas increasingly worry about an ageing population, Africa has an influx of young talent representing huge opportunities for growth. At the same time, the continent faces major infrastructure needs. Estimates put annual infrastructure requirements at roughly $130 to $170 billion, with a substantial shortfall versus current financing. The result is a continued unmet demand for reliable power, clean water, sanitation, and transport, and a 2% annual reduction in Africa’s GDP growth.

The fintech effect

The silver lining in this is that such gaps create opportunity. Where basic systems are missing or under-scaled, incremental capital can deliver disproportionate gains, especially in sectors such as health, agriculture, and financial inclusion. Put simply, the baseline is lower, so the potential for measurable improvement per invested pound is often much higher than in mature markets.

Fintech is a prime example of this opportunity for exponential growth. Not only is it a high-growth industry in itself – fintechs account for eight of Africa’s nine unicorns – it’s an enabling layer that multiplies impact across lending, healthcare, access, education, and regional trade. The sector sits at the centre of Africa’s development equation as it enables the rails that other sectors depend on. Digital identity is a good case study, for instance. A lack of robust identity and verification puts up barriers between people and crucial services and makes it harder for providers to deliver them efficiently. Fintech can change that. By making digital identities easier to achieve, while maintaining strict security, it helps increase access to infrastructure that is crucial in fuelling growth.

Agriculture and cross-border trade

Further amplification is seen in the confluence of fintech and agriculture. Solutions that increase financial inclusion, such as mobile-based lending platforms, are proving vital in a sector that represents the primary source of livelihood for over 70% of Africa’s population and rests on smallholder farmers. However, these farmers have traditionally been shut out of financial systems due to a lack of collateral, credit history, or proximity to financial institutions. Creating systems that allow farmers to overcome these barriers and access vital loans, while still doing so ethically and responsibly, is essential to the region’s growth. Not only this, supporting the agricultural sector is critical in helping increase Africa’s food security and improving climate resilience.

Then there’s fintech’s role in supporting cross-border trade and micro, small and medium-sized enterprises (MSMEs). Fintech solutions are vital in helping reduce cross-border fees for MSMEs, enabling them to embrace the opportunities of international trade like their larger, more established peers. Such solutions can also support in insulating businesses navigating currency volatility: a particular strain for smaller African businesses.

This magnifying power means impact investors must stop treating African fintech as a niche interest and begin recognising the role it plays in the continent’s development trajectory. The sector is a core multiplier and is quickly becoming the infrastructure layer on which many future impact models will come to depend. Fintech is not a side interest of impact investment – it’s the foundation of it. 

Africa’s future depends on turning the conversation around impact investment into real action. Specifically, this means investing in fintech. Money spent here has an exponential impact, supporting critical industries such as agriculture, and improving people’s access to vital services. If investors want the biggest pay-off for their dollar, it needs to be spent on African fintech.

The post The Highest Impact Dollar: Why Africa’s Future Depends on Fintech Infrastructure appeared first on European Business & Finance Magazine.

Capital One acquired Brex for $5.15 billion in 2026—a 58% discount from its 2022 peak valuation—while competitor Ramp raised funding at a $32 billion valuation. The dramatic reversal from 2020, when Brex was worth 37 times more than Ramp, reveals how FinTech is transitioning from high-growth startup phase to institutional consolidation, with profitability and unit economics now mattering more than growth-at-any-cost.

What Happened Between Brex and Ramp?

The tale of two corporate card companies illustrates the most significant shift in FinTech’s evolution: the end of the growth-at-any-cost era and the beginning of what industry observers call “FinTech institutionalization.” In 2020, Brex dominated with a valuation 37 times higher than upstart competitor Ramp. By 2026, that relationship inverted spectacularly—Ramp’s $32 billion valuation dwarfs Capital One’s $5.15 billion acquisition price for Brex.

Brex peaked at $12.3 billion in 2022 during the venture capital boom when profitability was optional and growth metrics justified seemingly unlimited valuations. The company pioneered corporate cards for startups, offering instant approval, high limits, and rewards programs tailored to technology companies. Revenue grew rapidly as venture-backed startups proliferated during the cheap-money era, with Brex capturing substantial market share among emerging technology companies.

Ramp took a different approach, focusing obsessively on unit economics and path to profitability while still achieving impressive growth. The company emphasized spend management software alongside its card offering, creating multiple revenue streams and stronger customer retention. As interest rates rose and venture capital contracted in 2023-2024, Ramp’s business model proved more resilient. The company continued growing while competitors struggled, ultimately commanding the $32 billion valuation that reflects investor confidence in sustainable business fundamentals.

Capital One’s acquisition of Brex at a 58% discount represents strategic opportunism—purchasing a scaled FinTech platform with proven technology and customer base at a fraction of peak valuation. For Capital One, the deal provides instant access to the startup and SMB market segment while eliminating a potential long-term competitive threat. For Brex investors and founders, the outcome represents a sobering reminder that FinTech valuations ultimately depend on sustainable economics rather than pure growth narratives.

Why Did Brex’s Valuation Collapse?

Multiple factors contributed to Brex’s dramatic valuation decline from $12.3 billion to a $5.15 billion exit price. The macroeconomic shift from zero interest rates to restrictive monetary policy fundamentally changed venture capital availability. Startups—Brex’s core customer base—dramatically reduced spending as funding dried up, directly impacting Brex’s transaction volumes and revenue growth.

The company’s business model concentrated risk in a single customer segment. When venture-backed startups retrenched simultaneously during 2023-2024, Brex felt disproportionate pain compared to corporate card providers with diversified customer bases. Traditional banks weathered the storm more effectively because their exposure to the startup ecosystem represented a smaller portfolio percentage.

Profitability pressure intensified as investors shifted from rewarding growth to demanding sustainable unit economics. Brex’s customer acquisition costs remained high while customer lifetime value declined as startups failed or drastically cut spending. The company attempted pivoting toward larger enterprise customers but faced entrenched competition from established players with existing relationships and integrated systems.

Capital structure also played a role. Brex raised substantial venture capital at high valuations during the boom, creating preference stacks that complicated any exit below peak valuation. When growth slowed and profitability remained elusive, the company faced difficult choices: raise down rounds that would punish existing investors, pursue profitability through severe cost cuts that might sacrifice growth, or sell to a strategic buyer at a price that disappointed late-stage investors but provided reasonable returns to earlier backers.

Why Is Ramp Worth $32 Billion?

Ramp’s extraordinary valuation reflects superior execution across multiple dimensions that investors now prioritize in the post-boom FinTech landscape. The company achieved efficient growth—expanding revenue while maintaining improving unit economics rather than sacrificing profitability for market share. This discipline became increasingly valuable as FinTech funding conditions tightened and investors demanded clear paths to sustainable profitability.

The post Why Did Capital One Buy Brex for $5B While Ramp Is Worth $32B? FinTech Consolidation Explained appeared first on European Business & Finance Magazine.

Winston Weinberg, founder and CEO of US legaltech unicorn Harvey, spends more time in rainy London than many residents of San Francisco’s sunny climes might hope to. Yet for Weinberg, needs must. Harvey has its sights set on Europe — and is fast building out its 75+ person team in London, along with opening offices in Spain, Germany and, as of this week, Paris.

“We want everyone to be using Harvey,” the founder, who’s been backed by Andreessen Horowitz, along with EQT and Evantic, tells Sifted. The big question: will he succeed? In Europe, Harvey’s going up against a notable competitor — Swedish unicorn Legora — while Big Tech model makers also loom over the fast-growing legaltech market.

The $8 Billion Ambition

Harvey’s aggressive European push comes on the heels of extraordinary momentum in its home market. The San Francisco-based company recently closed a $160 million funding round led by Andreessen Horowitz, valuing the business at $8 billion—a remarkable achievement for a company founded just two years ago in 2022. The valuation represents a 60% increase from its $5 billion Series E round earlier in 2025, demonstrating the venture capital community’s conviction that legal AI represents a transformational opportunity.

The company has already secured over 1,000 customers worldwide, with more than 300 based in Europe. Its client roster reads like a who’s who of the legal elite, including 50 of the top AmLaw 100 firms and major corporate legal departments. By August 2025, Harvey had surpassed $190 million in annual recurring revenue, and the company now plans to expand beyond large law firms to target smaller practices—a move that could dramatically accelerate its European footprint.

For European business leaders watching the legaltech space, Harvey’s expansion represents both opportunity and competitive threat. The company’s domain-trained AI platform assists with legal research, document drafting, contract analysis, and other core legal workflows—tasks that have historically consumed enormous billable hours.

The Swedish Challenge: Legora’s Home Advantage

Harvey isn’t entering virgin territory. Stockholm-based Legora achieved unicorn status in late 2025 after raising $150 million in Series C funding at a $1.8 billion valuation, led by Bessemer Venture Partners with participation from ICONIQ, General Catalyst, Redpoint Ventures, Benchmark, and Y Combinator. Founded in 2023 by CEO Max Junestrand and CTO Sigge Labor, Legora has built a formidable presence across Europe with over 400 clients spanning 40 markets.

Legora’s collaborative AI platform supports document review, drafting, and research tasks for law firms and corporate legal departments. The company works with prestigious European firms including Linklaters, Cleary Gottlieb, Goodwin, and Bird & Bird. With offices in Stockholm, London, New York, Denver, and Sydney, Legora employs nearly 200 legal experts and technologists and plans to more than double its team size in 2026.

The competition between Harvey and Legora mirrors broader trends reshaping European business and technology, where American technology companies face increasingly sophisticated homegrown challengers. Legora’s European roots give it inherent advantages in understanding local regulatory frameworks, data privacy requirements under GDPR, and the nuanced differences between continental legal systems.

Differentiation Through Collaboration and Memory

Weinberg argues that Harvey’s competitive moat lies in specific product features that competitors will struggle to replicate. “You have to build things you think they can’t,” he explains, highlighting two key differentiators. First, Harvey’s platform emphasizes collaborative and multiplayer functionality, making it easy for lawyers and their clients to work simultaneously on shared documents—a capability Weinberg describes as “pretty defensible over time.”

Second, Harvey’s memory function allows the platform to remember clients’ previous requests and personal style preferences, understanding which documents carry greater importance than others. The company also plans to increasingly incorporate clients’ institutional knowledge into its platform, enabling firms to leverage their historical expertise alongside AI capabilities.

These features address a fundamental challenge in legal AI: building tools that augment rather than replace human judgment. As technology continues to transform European industries across sectors, the legal sector faces particular resistance due to concerns about accuracy, liability, and the preservation of professional judgment.

The Acquisition Strategy

Harvey is keeping its options open for inorganic growth. Weinberg acknowledges the company is “always actively looking” at potential acquisitions, noting that “you can’t build everything.” Sensible targets could include specialized point solutions—such as patent law tools—that would expand Harvey’s capabilities without requiring years of internal development.

In April 2024, Harvey acquired Mirage, a San Francisco-based startup, signaling its willingness to pursue strategic M&A. With over $1 billion raised across nine funding rounds, Harvey has the capital firepower to pursue aggressive acquisitions as it scales globally. This approach aligns with broader consolidation trends across European business sectors, where market leaders are using M&A to accelerate growth and eliminate competition.

The Biggest Risk: Scaling People, Not Technology

Ironically, Weinberg doesn’t view Legora or Big Tech as Harvey’s primary threats. “The biggest risk to startups” isn’t competitive dynamics, he argues—it’s internal execution. “Are you hiring the right people, are you promoting the right people, are you letting the right people go?”

One challenge specific to legaltech involves cultural transformation. “Lawyers aren’t used to that mentality,” says Weinberg, himself a former securities and antitrust litigator. “In a fast-paced environment you’re going to make mistakes, and that’s OK.” Teaching perfectionist lawyers to embrace startup velocity represents a unique human capital challenge as Harvey scales its European operations.

The company plans to hire 180 people across Europe in 2026, a massive expansion that will test its ability to maintain culture and execution quality across multiple jurisdictions and legal traditions.

The Verdict

Harvey’s European expansion represents a critical test of whether American legal AI platforms can successfully transplant to markets with different regulatory frameworks, legal traditions, and competitive landscapes. The company’s $8 billion valuation and $190 million ARR demonstrate product-market fit in the United States, but European success is far from guaranteed.

Legora’s rapid ascent shows that European legal AI startups can compete effectively with Silicon Valley rivals when they understand local market dynamics and build strong relationships with continental law firms. As European markets continue to evolve and adapt, the Harvey-Legora battle will likely define which AI legal platforms dominate the continent for years to come.

For now, Weinberg’s frequent trips to London signal his commitment to winning Europe. Whether that determination translates into market leadership remains the legaltech industry’s most compelling question for 2026.

Further Reading

On Legaltech AI Development:

• “Legal AI startup Legora picks up $150M Series C to hit unicorn status” – PitchBook (October 2025)
• “The multi-billion dollar story of legaltech in 2025” – INFINITE (December 2025)

On European Tech Competition:

• “With $150M in new funding, Swedish AI startup Legora ushers legaltech into the unicorn age” – Arctic Startup (October 2025)
• “CMS Expands Harvey Deal With Roll Out Across 50+ Countries” – Artificial Lawyer (December 2025)

On AI Investment Trends:

• “10 of the biggest winners from 2025’s AI boom” – PitchBook (December 2025)
• “Harvey expands in Europe with new Dublin office to serve rising demand for generative AI” – The Irish Times (January 2026)

The post Harvey’s Bold European Expansion: Can the US Legaltech Unicorn Conquer the Continent? appeared first on European Business & Finance Magazine.

Nokia has taken one of the most consequential strategic turns in its modern history, confirming that it will carve out its artificial-intelligence and data-centre operations into a standalone business. The move follows a landmark $1 billion investment from Nvidia, giving the US chipmaker a meaningful equity stake and signalling a deepening partnership at a time when AI infrastructure has become the defining battleground of the global technology economy.

For Nokia, the message is unambiguous: the era of relying primarily on mobile-network equipment is coming to an end. With 5G investment slowing, operator capex tightening and growth prospects in radio access networks fading, the Finnish group is repositioning itself toward the fast-expanding world of AI-native networks. Hyperscalers, cloud providers and AI-compute companies are entering their biggest investment cycle in decades — and Nokia wants to be at the centre of it.

Under the restructuring, which will take effect in early 2026, the company will operate two core divisions. The newly created Network Infrastructure unit will house optical networks, IP networking, broadband and the company’s AI-related platforms and data-centre technologies. The legacy mobile-networks division will be streamlined around 5G and 6G radio, but without the expectation that it will remain the primary engine of growth. A smaller sovereign-focused division, Nokia Defense, will be placed in a separate incubation category to develop secure government and national-security infrastructure.

The decision comes after months of internal debate, at a time when Nokia faces intensifying competitive and geopolitical pressure. Ericsson’s recovery, Huawei’s resilience in non-Western markets, and European operators’ muted spending plans have placed Nokia’s traditional networks business under strain. Against that backdrop, the AI-infrastructure boom offers a more compelling runway. Nvidia is betting that Nokia can become a major supplier of high-capacity networking fabrics, advanced optical-transport systems and data-centre interconnects — technologies that are essential as AI-training clusters scale rapidly.

Markets initially welcomed the pivot. Nokia’s share price surged after the Nvidia announcement, touching levels last seen nearly a decade ago. But as details of the reorganisation became clearer, some of those gains faded. Investors are now weighing the ambition of the strategy against its execution risk. Splitting the business adds complexity, and the path to monetising AI-native networking depends on long sales cycles and heavy upfront investment. Hyperscale AI clusters, sovereign cloud platforms and defence-grade networks all require long contracting processes.

Still, the strategic rationale is difficult to ignore. AI workloads are expanding far faster than today’s networks can accommodate. Massive increases in data throughput, ultra-low-latency connectivity and energy-efficient transport systems are becoming central to the competitive advantage of AI developers. Nokia believes that its IP-routing technologies, fibre-optical platforms and next-generation data-centre interconnects are uniquely positioned to meet this demand — particularly as Europe accelerates its digital-infrastructure agenda. (Related analysis: Europe’s digital competitiveness strategy)

The pivot is not merely technological but geopolitical. Western governments are increasingly emphasising trusted, sovereign-aligned suppliers for critical infrastructure. As EU and US policymakers become more wary of dependency on Chinese vendors, Nokia’s alignment with Nvidia strengthens its position as a Western alternative capable of supporting major AI, cloud and national-security projects. This geopolitical momentum may prove as important as the commercial fundamentals. Relevant context: Europe’s tech-security landscape.

Financially, Nokia is targeting annual operating profit of €2.7bn–€3.2bn by 2028, up from roughly €2bn today. Much of that upside is expected to come from the Network Infrastructure division — the business now most closely tied to the AI opportunity. Executives acknowledge that restructuring costs will rise over the next two years, but insist that long-term margin expansion will justify the transition. This mirrors the broader trend of AI-driven transformation across Europe’s technology sector. (In-depth: Europe’s AI-investment boom)

There are material risks. Global demand for AI infrastructure remains strong but highly concentrated, with only a few large customers driving the majority of spending. Any slowdown in AI-cluster investment, regulatory intervention, or shifts in architecture could undermine Nokia’s assumptions. The company must also navigate its withdrawal from several non-core segments — including fixed wireless access, microwave radio and certain site-implementation units — which it now considers commercially peripheral. Similar challenges have emerged across Europe’s telecom-equipment sector, where companies are pivoting away from commodity hardware into software-driven and cloud-native models. (More: European telecoms restructuring trends)

Yet the direction of travel is clear. Nokia is no longer positioning itself as a traditional telecom-equipment manufacturer adapting to AI; it is reinventing itself as a foundational supplier of the networks that AI requires. The Nvidia partnership is more than an investment — it is a strategic endorsement that could reshape Nokia’s trajectory for the next decade. The company now has a narrative that investors can rally around: Nokia wants to build the networking backbone of the AI age, and it is reorganising itself to do exactly that.

For Europe’s broader industrial landscape, the move underscores how deeply AI is reshaping corporate strategy. As the region intensifies its push for technological sovereignty, Nokia’s bold restructuring may prove a template for other legacy players seeking to reposition their businesses around the next wave of digital infrastructure. Related coverage: Europe’s strategic shift toward cloud and AI infrastructure.

The post Nokia’s Bold AI Breakaway: Inside the Strategy Shift After Nvidia’s $1bn Stake appeared first on European Business & Finance Magazine.

Dan Cobley is a renowned technology leader and Fintech Speaker, best known for his time as Managing Director of Google UK & Ireland. He has since built a distinguished career at the intersection of digital innovation and financial services.

As co-founder of fintech success stories ClearScore and Salary Finance, and now Managing Partner at Blenheim Chalcot, he has helped scale disruptive ventures that are reshaping the financial landscape.

In this exclusive interview with The Champions Speakers Agency, Dan shares his views on digital transformation, the future of fintech, and why innovation must be embraced by every organisation to remain competitive.

Q1. The past year has accelerated digital transformation drastically—what should brands do now to ensure digital is an integrated and effective part of their marketing strategy?

Dan Cobley: I think it’s clear over the last year that we’ve seen perhaps a decade of digital transformation and adoption happen in a matter of months. So I think the best way to think about this is to think about what you might have hoped you’d have done by 2030—and make sure you do it this year.

Q2. What’s your response to businesses that still believe “digital isn’t for them”?

Dan Cobley: So what would I say to a business that says digital’s not for them?

I’d say bye bye, nice knowing you. Seriously though, I think any business that thinks digital is not for them is a bit like a business 100 years ago saying electricity is not for them. It’s just an impossible way to be a competitive long-term business in today’s world.

I’d say that you absolutely have to get with the programme. You have to digitise the way you communicate with your customers, the way you run your internal processes, and the way you run every aspect of your organisation. Companies that don’t do that won’t be around to answer the question in 10 years’ time.

Q3. In practical terms, how can companies use technology to enhance customer experience and streamline operations today?

Dan Cobley: In terms of small changes businesses can make today, I think it’s about looking at the way your customers live their lives and the things that they do to make every aspect of their daily existence more efficient and more convenient—and making sure that your products and services are working in that way.

So it should be no more difficult, no more frustrating to engage with you as a company than it is for them to do their shopping, talk to their friends, or organise their daily routines. And if there’s a gap, you need to close that gap.

Q4. You’ve highlighted how adoption hinges on feasibility, economics, and market readiness. How has the last year reshaped the market’s readiness for new technologies?

Dan Cobley: Thinking about new technologies, they tend to come to market in a significant way when three things are true: when the technology is feasible, when the economics of rolling it out are viable, and when the market is ready. Usually it’s that third thing that slows down the adoption of new technologies.

But what we’ve seen over the last 12 months is the market getting incredibly rapidly ready for new technologies. The enforced working from home and our desire to be distant from other people has meant that a whole decade of digital adoption has happened in a matter of months. That means there’s going to be a huge stickiness to a lot of the new digital ways of working that we’ve seen in the last year—and I think that’s the world we’re going to be in for the foreseeable future.

Q5. For organisations aiming to foster a culture of innovation, what are the most effective ways to empower employees to think creatively and experiment boldly?

Dan Cobley: In terms of advice that I’d give to companies looking for a more innovative culture—well, I could do a 40-minute keynote on this—but in terms of some of the highlights I would say you need to get the right team in place. That means hiring creative problem-solvers, people who are enthusiastic about attacking a problem because that’s a fun thing to do. The people with that mindset are going to be helping you solve the problems for your business and your customers that take you forward.

I think you need to define the goal, not the path, for that team. People with that kind of mindset enjoy figuring out how to solve the problem, so just make very clear what the goal is and they’ll find a way to get there.

You need to give them some freedom. You need to give them perhaps 20% time, or free Friday afternoons, where they can get away from the day-to-day task list and think more expansively about some of the problems that they want to solve.

You need to be forgiving of smart failure. People who take sensible, calculated risks on things that might be game-changing for your organisation—you need to recognise that, by definition, some of those risks are going to fail. If you know what the answer is going to be already, then it’s not a test, it’s not an experiment, and you’ll learn nothing from it.

But if you give people the freedom to make those experiments and do those tests, then in some cases they’ll be surprisingly positive in the outcome, and they’ll move your business forward.

And lastly, you need to give them the tools to allow them to do these things efficiently. Invest in the digital platforms for data analysis, A/B testing, and things like that, which can give them an accelerated ability to learn, innovate, and bring new things to market.

This exclusive interview with Dan Cobley was conducted by Mark Matthews of The Motivational Speakers Agency.

The post “Adapt or Be Left Behind”: Fintech Speaker Dan Cobley on the Digital Imperative appeared first on European Business & Finance Magazine.

Blockchain Platform Aims to Enter Top-5 Crypto Networks by Transaction Volume Against the Backdrop of Approaching 10 Million Accounts Milestone

Venom Foundation, operator of one of the world’s most performant blockchain platforms, officially announces plans to reach 500,000 daily transactions by the end of 2025. This will enable Venom to join the elite group of blockchains alongside Polygon, Arbitrum, and Optimism, solidifying the platform’s position as a key player in the cryptocurrency industry.

Currently, the Venom network demonstrates impressive growth dynamics – the total number of created accounts is approaching the 10 million mark. The platform already processes 150,000-200,000 transactions daily, maintaining network stability at 99.99% uptime.

Achieving the ambitious goal of 500,000 daily transactions will be ensured through a multi-tiered strategy including partnership development, user incentive programs, and ecosystem expansion.

Key Initiatives:

Large-Scale Incentive Programs. The flagship Venom Quests program has already distributed rewards worth over $8.65 million among ecosystem participants. The current 5th season offers a prize pool of 11 million $VENOM tokens ($2.2 million), motivating users to actively engage with DeFi protocols, NFT platforms, and dApps.

Strategic Partnerships:

• Venom has already concluded agreements with the Government of the Philippines as a blockchain infrastructure provider for the country’s national digitalization program.

• The platform also has partnerships with investment group Alpha MBM Group, aimed at development in Africa.

• An agreement is in place with the UAE Ministry of Climate Change and Environment to create a carbon credit system.

• Negotiations are ongoing with one of China’s leading fintech companies regarding the implementation of Venom technology in large-scale financial systems.

The platform’s technological advantages primarily ensure the success and rapid expansion of the Venom network. Venom possesses one of the highest throughput capacities in the industry — up to 150,000 TPS in stress tests, which significantly exceeds competitors’ capabilities and creates a foundation for scaling to 500,000 daily transactions.

“We’re not simply striving for numerical growth in transactions — we’re creating a sustainable ecosystem that provides real value for users, developers, and institutional partners,” says Christopher Louis Tsu, CEO of Venom Foundation. “Our goal of 500,000 daily transactions is a launching pad for further scaling and establishing Venom as critical infrastructure for the Web3 economy.”

Additional Growth Initiatives

In addition to core programs, Venom develops multiple directions for increasing transactional activity:

• Education and developer certification programs through Venom Academy

• Bug Bounty program with a $100,000 prize pool

• DAO for developer support with grants up to $20,000

• NFT marketplace for Southeast Asian artists

• Staking and farming opportunities through VenomStake.com and web3.world DEX

Global Expansion

Venom actively expands its presence in key regions, with particular focus on Southeast Asia, Africa, and the Middle East. The platform is considering submitting applications for inclusion in fintech sandboxes of regulators in Singapore, Philippines, Indonesia, Vietnam, and Thailand.

Achieving the goal of 500,000 daily transactions by the end of 2025 will become an important milestone in Venom’s development and confirm the platform’s status as one of the key drivers of blockchain industry growth.

About Venom Foundation

Venom Foundation is a fintech company founded in Abu Dhabi, specializing in the development and implementation of high-performance blockchain solutions. Venom’s mission is to provide blockchain infrastructure that streamlines financial services, is adaptable, and scalable to meet the needs of massive national and international enterprises.

Venom Foundation specializes in the creation, deployment, and integration of decentralized applications and services with a focus on security, speed, and regulatory compliance. The Venom network provides throughput capacity of up to 150,000 TPS with minimal fees and 99.99% uptime, supporting an ecosystem of DeFi, NFT, gaming, and enterprise solutions.

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