Visa and Mastercard could raise interchange fees

According to a report from the WSJ, Visa and Mastercard are considering raising interchange fees on card transactions in the U.S. Visa and Mastercard generate most of their revenue from these small processing fees, and it could have implications for merchants and fintech startups. When you pay with a credit or debit card, merchants pay a small fee to the bank that issued this card. Your bank then pays an even smaller fee to the company that operates the card network. In most cases, card issuers and card networks are separate companies. For instance, Chase issues a Visa card, Chase gets an interchange fee on every card transaction, and Chase pays a tiny fee to Visa. Some companies also operate …

OakNorth raises $440 million from SoftBank and Clermont

British startup OakNorth has raised a $440 million funding round from SoftBank’s Vision Fund as well as the Clermont Group. The company is creating a digital bank and focuses on loans for small and medium enterprises and the technology behind those loans. Today’s funding round is the biggest funding round in a European fintech company. OakNorth has raised $848 million in primary funding since its creation. With this funding round, the company plans to double down on what it already does. The company can issue fast and flexible loans to businesses and property developers in the U.K. OakNorth uses big data and machine learning to assess the risks and monitor its portfolio. The company has lent more than $3.7 billion …