Today in FinTech: GetVantage Raises $36M; Apple Allows Third-Party Payments in S Korea

In today’s FinTech news, GetVantage secures $36 million to grow its footprint in Southeast Asia, while Apple has to take a reduced commission in South Korea. Plus, debt collectors could be charging people illegal fees.

GetVantage Raises $36M to Grow Revenue-Based Financing Biz

Alternative revenue-based funding platform GetVantage raised $36 million in equity and debt that it will use for expanding its product suite and technology infrastructure. The startup also plans to grow its presence in Southeast Asia. GetAdvantage aims to fill the funding gap for small- to medium-sized businesses (SMBs).

Apple Enables Third-Party Payments in South Korea in Response to New Law

Apple is now allowing third-party payments in South Korea in response to a new law requiring major app stores to allow alternative payment methods. Apple’s commission will be reduced to 26% from the 30% it reaped from direct payments. The move is in response to South Korea’s Telecommunications Business Act passed last year, which forbids large platform companies from forcing developers to use their in-app payment systems.

Commerce Dept: People Are Spending More on Gas, Less on Cars

Overall consumer spending fell in May, driven largely by spikes in fuel and housing costs. A report from the U.S. Commerce Department’s Bureau of Economic Activity showed that personal consumption expenditures (PCE) were up 0.2% last month but dropped 0.4% when adjusted for inflation. The PCE price index went up 6.3% from May 2021, energy prices rose 35.8% and food prices rose 11%.

CFPB Warns Debt Collectors About Fees

The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion warning debt collectors that the add-ons they charge for “pay-to-pay” fees — commonly called “convenience fees” — violate federal law. “Federal law generally forbids debt collectors from imposing extra fees not authorized by the original loan,” said CFPB Director Rohit Chopra. 

Auto Lenders Brace for Higher Interest Rates, Recession

J.P. Morgan Chase reported that auto loan and lease originations were $8.4 billion in the first quarter, compared to $11.2 billion a year prior. CarMax said that its net loans originated were $2.44 billion, down from $2.48 billion last year. Data from the Federal Reserve in the first quarter showed that auto loans increased by $11 billion.