Mogo’s Fintech Market Momentum: Inside the Challenger Bank’s Growth

Mogo Prepaid

Mogo, one of Canada’s first challenger banks, has made quite a name for itself over the past few years. From major acquisitions — including digital payment provider Carta Worldwide and saving and investing app Moka Finance Technologies — to a major stake in the cryptocurrency platform Coinsquare, Mogo is a key player in the digital payments market.

An analysis on Seeking Alpha suggested that Mogo is “following in the footsteps of fintech superstars such as PayPal, Square, and SoFi in building its ecosystem of services for the Canadian market.” The recent acquisitions and sharp spike in stock price over the past year indicates the momentum for Mogo has just begun. To gain a sense of Mogo’s recent growth, we’ve recapped it’s biggest news over the past year.

Mogo Completes Strategic Investment in Coinsquare: Mogo announced it has completed its previously announced strategic investment in the digital asset trading platform Coinsquare.

Mogo acquired a 19.99% ownership interest in Coinsquare consisting of a cash payment of $27.4 million and the issuance of 2,807,577 common shares of Mogo to Coinsquare and certain selling shareholders of Coinsquare. The Investment also includes rights for Mogo to increase its ownership up to 43% at a fixed price, with additional conditions.

Mogo to Acquire Digital Payments Technology Company Carta Worldwide: Mogo, a fintech company focused on digital financial solutions, announced an agreement to acquire Carta Worldwide, a next-gen digital payments solutions provider.

This acquisition will accelerate Mogo’s push into the broader digital wallet and payments technology business. This will include the integration of Carta’s transaction processing technology with MogoSpend, a digital spending account that comes with a Mogo Visa Platinum Prepaid Card, which launched in July.

Mogo to Acquire Saving and Investing App Moka Financial Technologies: Mogo announced its intent to acquire Moka Financial Technologies Inc., one of Canada’s leading saving and investing apps.

The acquisition will increase Mogo’s member base by over 40% to more than 1.7 million and expand Mogo’s wealth offering to include saving and investing products. In addition, the acquisition will accelerate Mogo’s plan to launch a free stock trading solution for Canadians. The two companies expect to complete a definitive agreement and close the transaction in Q2 2021.

Mogo Announces Partnership with LendingClub Bank: Mogo announced that its payments platform Carta is extending their U.S. market deployment with an expanded debit card issuance service offering for fintech challenger banks.

Carta has partnered with LendingClub Bank to power the new advanced debit card product offering and help businesses rapidly deploy next-generation digital banking solutions. Carta debit card issuance is being enabled in partnership with LendingClub Bank.

Learn more about Mogo’s evolution during a fireside chat at the CPPO 2021 Symposium on June 9 with the CPPO and Greg Feller, president of Mogo about its expansion south of the border and pioneering a new crypto offering. Register here for the free CPPO Spring Symposium. 

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