Product announcements, new pacts, cash back cards — none of it enough to give PYMNTS’ class of digital startups, newly trading on U.S. stock exchanges, a bounce.
To that end, the FinTech IPO Stock Index, as tracked by PYMNTS, continued its downturn, sliding 3% on the week.
Only eight of the more than 40 names housed within the index showed gains overall through the past five trading sessions. And company news was scant, although a smattering of headlines showed that beyond the vagaries of stock movement, FinTechs, and specifically platform firms, are busy expanding their products and service offerings.
Chief among those positive returns, at least with company-specific news to report was Robinhood.
Earlier this week, the company said that it has agreed to acquire U.K.-based electronic money institution and cryptocurrency asset firm Ziglu Limited.
Ziglu lets customers buy and sell 11 cryptocurrencies, earn yield via its Boost products, pay using a debit card, and move and spend money around the world with no fees.
Robinhood shares were up a bit more than 2.3% as measured through the past week.
Separately, Toast, up 2% through the same period, said in a press release this week that it had debuted Toast for Quick Service, geared to quick-service restaurants (QSRs). The solution streamlines and speeds ordering and payment workflows.
Affirm, which sank 6% through the past several sessions, said it was extending its partnership with social marketplace Poshmark to offer increased payment flexibility to shoppers. The firms said eligible shoppers can now tap Affirm and choose between monthly payments or four interest-free payments every other week for merchandise exceeding $50.
SoFi Technologies said that SoFi Checking and Savings members with direct deposit can start earning 3% cash back on all eligible credit card purchases for a full year upon receiving the SoFi Credit Card.
Ominous Signal From Blend?
We’d be remiss in stating that the only announcements were ones that have been expansionary in nature. Blend Labs said this week that it would cut 10% of its workforce, as noted in a filing with the Securities and Exchange Commission (SEC). Management has stated that higher rates and reduced refininancings have been hitting operations, particularly in the title insurance sector.
And herein lies a nod to some of the very same pressures that have bedeviled the FinTech IPO group as a whole. Blend Labs, although focused on mortgage tech, came out with a visible nod to the fact that even disruptors are not immune to the macro environment and there are only so many options any company has when confronted with those pressures. Those moves include trimming headcount to save operating cash flow.