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Apple's Savings Account customers face challenges with withdrawals
Apple's Savings Account customers face challenges with withdrawals, Nubank partners with Uber to enable paying for rides with NuPay, and Adyen launches an instant payout service
What can be better than the first Friday of summer? Wrapping this busy week with Fintech news from across three continents (is it becoming a tradition?):
🇺🇸 Apple's Savings Account customers face challenges with withdrawals,
🇧🇷 Nubank partners with Uber to enable paying for rides with NuPay, and
🇪🇺 Adyen launches an instant payout service
Thank you for reading and have a fantastic weekend!
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Apple's Savings Account Customers Face Challenges with Withdrawals
Some customers of Apple's Savings Account, which the company offers in partnership with its long-standing financial partner Goldman Sachs (NYSE: GS), have reported difficulties in withdrawing their money, according to the report by the Wall Street Journal. Customers have experienced delays and conflicting instructions from customer service representatives at Goldman Sachs when trying to transfer funds from their Apple accounts to other bank accounts. In some cases, the money appeared to have vanished or took weeks to arrive.
While Goldman Sachs stated that the majority of customers did not experience delays, they acknowledged that a limited number of users may experience delayed transfers due to security measures in place. Transfers from newly opened savings accounts and large transfers to different accounts can trigger anti-money laundering alerts or security reviews, causing delays. Some frustrated customers have made unexpected financial decisions due to the delays and have even closed their accounts as a result, according to the report.
Apple (NASDAQ: AAPL) launched savings accounts in April, as a continuation of its push into financial services than began with the launch of Apple Pay in 2014. The Apple savings account offers a high interest rate of 4.15%, attracting customers looking for better yields compared to the average savings account rate. According to Forbes, the newly-launched services attracted almost $1 billion in deposits in just four days since the launch. The service is available to Apple Card customer in the United States, and the accounts are provided by Goldman Sachs.
✔️ Apple Customers Say It’s Hard to Get Money Out of Goldman Sachs Savings Accounts
✔️ Apple’s New Savings Account Draws Nearly $1 Billion In Deposits In First Four Days
✔️ Apple launches its savings account with 4.15% interest rate
Nubank Partners with Uber to Enable Paying for Rides with NuPay
Nubank (NYSE: NU) and Uber (NYSE: UBER) have partnered to offer customers the convenience of paying for Uber trips using NuPay, Nubank's online payment method. By linking their NuPay account to the Uber app, customers can make quick and secure payments with just one click. Paying with NuPay also offers exclusive benefits, such as the possibility of receiving an additional credit limit for the transaction. With NuPay, customers no longer need to share their credit or debit card details for Uber payments, as the process is automated for a seamless experience.
NuPay is a payment method for online purchases available exclusively for Nubank customers. When shopping at an online store that offers NuPay, Nubank customers can select the "Buy with Nubank" option at checkout and confirm the purchase with your 4-digit password in the Nu app. NuPay can be used for both credit and debit transactions, and service users can choose to pay in full using their available balance or split the payment into up to 24 installments. Nubank launched the service in May 2022, and its was available at 160 merchants’ as of April, 2023.
In May, Nubank announced reaching the milestone of 80 million customers across its three markets, Brazil, Mexico and Colombia, adding 4.5 million customers in the first quarter of 2023 alone. The company reported 56 million customers having Nubank’s digital accounts, 35 million customers using credit card products, and 6 million customers taking a personal loan.
✔️ Nubank e Uber: saiba como pagar suas viagens com NuPay em apenas um clique
✔️ Nubank reaches the milestone of 80 million customers in Latin America
✔️ Nu Holdings Ltd. Reports First Quarter 2023 Financial Results
Adyen Launches Instant Payout Service
European payments giant Adyen (AMS: ADYEN) launched Payout Services to enable its customers to make faster payouts to their users or partners. Using single API, Adyen customers can make instant payouts to their user base, such as gig economy workers and marketplace sellers, improving their platform experience with faster access to funds. The service allow making payouts to bank accounts and cards, and is available in the United States, United Kingdom and 20 Eurozone countries, such as Germany and France.
Adyen can process payments up to three days faster than the industry standard by leveraging its global banking infrastructure and direct connection to real-time payment rails, such as Faster Payments in the UK, and SEPA Instant Europe. Adyen holds a credit institution license from the central bank of Netherlands, and operates in the United States under a branch licensed by the Office of the Comptroller of the Currency and the Federal Reserve. "We see an opportunity to provide a market-leading solution that supports real-time payouts," commented, Roelant Prins, CCO at Adyen, in the company’s press release.
After years of instant payment schemes operating successfully in Europe, Brazil, and India, the United States is finally poised to introduce its own. FedNow is a new real-time payments system being developed by the Federal Reserve in the United States. It aims to provide instant payment capabilities 24/7, allowing individuals and businesses to send and receive money in real-time. With FedNow, users will no longer have to wait for hours or even days for transactions to clear. Instead, funds will be available instantly, enhancing the speed and convenience of financial transactions.
On Wednesday, I wrote that investing in PayPal (NASDAQ: PYPL) or Block (NYSE: SQ) five years ago would yield a loss (Block was down 0.95%, while PayPal was down 25.47%). However, investing in Adyen would not be a bad investment, as the stock is up 269% since June, 2018. 👇🏻
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