Types of Pay Later Solutions; European B2B Office of CFO SaaS: 2025 Market Trends and Key Investments; Breaking Down Transfer Pricing;

This issue dives into the evolving dynamics across fintech, with deep insights into billing models, payment innovations, digital wallets, and the financial infrastructure powering modern finance

Insights & Reports:

1️⃣ Types of Pay Later Solutions

2️⃣ Breaking Down Transfer Pricing

3️⃣ Crypto Asset Regulation 2025

4️⃣ Inside the Digital Bank: What Really Powers Modern Finance

5️⃣ Germany Has the Highest PayPal Adoption in eCommerce

6️⃣ Wero: The European Challenger Digital Wallet

7️⃣ What You Should Know About Payment Orchestration in 2025

8️⃣ European B2B Office of CFO SaaS: 2025 Market Trends and Key Investments

9️⃣ $25B-valued Chime files for an IPO, reveals $33M deal with Dallas Mavericks

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TL;DR:

Welcome to a fresh edition of the Fintech Wrap Up!

Pay Later is no longer a one-size-fits-all game. From traditional credit cards and pay-in-full models to rent-to-own and BNPL installments, each option serves a different need. While credit cards offer flexibility (at a cost), short-term and promotional installment plans appeal to shoppers seeking interest-free convenience. Long-term financing and rent-to-own cater to bigger-ticket items and less creditworthy users—highlighting how nuanced consumer finance has become.

The edition also breaks down transfer pricing into three layers—strategy, operations, and compliance—and how automation tools are slowly replacing Excel sheets and costly consultants. Meanwhile, crypto regulation heats up: El Salvador and Switzerland lead with clarity and infrastructure, while the U.S. and EU face criticism for inconsistency or bureaucracy. Asia and LATAM are moving fast, but challenges persist.

On the infrastructure side, we get a behind-the-scenes look at what really powers digital banks—from real-time event buses and API gateways to integrated compliance and fraud tools. This architecture is what makes open banking, embedded finance, and seamless customer journeys possible.

Germany stands out as PayPal’s strongest market, with a 92.4% eCommerce adoption rate—surpassing even Visa and Mastercard. Simpler digital payment landscapes and cross-border eCommerce habits are likely to keep PayPal ahead in Europe.

In wallet news, Wero—Europe’s challenger to foreign-owned payment systems—is rolling out instant account-to-account payments via SEPA. Launched in Germany, France, and Belgium, it’s already handling millions of transactions. Future features include C2B payments, BNPL, and loyalty programs—all aimed at strengthening Europe’s payment independence.

Lastly, payment orchestration is getting real. With 66% of merchants calling it strategic, orchestration platforms are evolving beyond buzzwords. Whether multi-acquirer, PSP-centric, or pure-play, they promise better conversion rates, lower costs, and smoother compliance. But orchestration isn’t for everyone—it’s a matter of scale, reach, and control.

In curated news: Chime files for IPO with a $25B valuation, Revolut gears up for a $1.1B expansion in France, and Mastercard partners with MoonPay to bring stablecoins to the mainstream. The future of fintech? It’s dynamic, decentralized, and more interconnected than ever.

Until next time, stay curious and stay ahead.

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Reports

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Insights

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Deep Dive: Usage-Based Billing

UBB isn’t exactly new—it’s how we’ve long paid for utilities, rides, and phone bills. But in the era of SaaS, AI, and automation, it's making a powerful comeback. As software eats the world and machine-to-machine consumption surges, the traditional subscription model is losing ground. A recent report shows that 3 out of 5 SaaS companies already use some form of UBB, and that figure is expected to rise to 80% in the next few years. With SaaS growing at 7.3% CAGR and AI accelerating usage complexity, pricing is no longer a static lever—it’s a data challenge demanding flexibility and customer-centricity.

The advantages are compelling: better net revenue retention (up to 9% higher than subscription-only peers), reduced churn, expanded total addressable markets, and higher customer satisfaction. But UBB isn’t without pitfalls—monitoring usage metrics accurately, managing billing systems, and ensuring revenue predictability remain key hurdles. That’s why many companies are now embracing hybrid pricing models, combining UBB with subscriptions to align value with customer behavior throughout the user journey.

Underpinning this shift is a growing ecosystem of pricing infrastructure—from legacy ERP integrations to nimble UBB platforms like Metronome, M3ter, and Amberflo. Industry giants like Stripe and Zuora have jumped in through acquisitions, signaling confidence in UBB’s strategic value. And with pricing increasingly seen as a tech and data play, companies that nail dynamic, transparent, and usage-aware models will be the ones that thrive.

In short, usage-based billing is no longer optional—it’s a strategic imperative. And whether you’re a SaaS founder, pricing strategist, or investor, now is the time to pay attention to how usage is reshaping value.

Deep Dive: Usage-Based Billing

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Types of Pay Later Solutions

The Pay Later ecosystem encompasses several distinct models, each serving different consumer needs and use cases:

Traditional Credit Cards remain the foundation of consumer credit and are issued by banks through major networks like Visa and Mastercard. These products offer flexible payment options, with interest accruing on unpaid balances. They typically include reward programs, with premium cards offering enhanced benefits for annual fees. While they provide maximum flexibility, they also carry higher interest rates for revolving balances.

Pay-in-Full Programs require full payment within a specified period, usually 30 days—similar to traditional charge cards. They often target higher credit quality consumers and may include rewards or benefits without charging interest. This model typically generates revenue through merchant fees rather than consumer interest charges, and through co-branded and affiliate programs and annual membership fees.

Short-Term Transactional Credit/Installment Plans include the popular "Pay in 3" and "Pay in 4" models that have become synonymous with the BNPL industry. These plans typically split purchases into equal payments over six to twelve weeks, with no interest if paid on time. They serve both necessity-based and convenience-based consumers, with revenue primarily from merchant fees and late or failed payment charges. Some programs offer subscriptions and shopping ecosystems for which they are paid affiliate fees.

Long-Term Installment Options are solutions that offer extended payment terms—usually six to 36 months—for larger purchases. They may carry interest charges or promotional rates and are often used for significant expenses like furniture, electronics, and travel. This category includes both merchant-specific financing and general-purpose installment options.