Author: Julie Muhn (@julieschicktanz)

Could a U.S. AI Czar Reshape Global Fintech?

Could a U.S. AI Czar Reshape Global Fintech?
By Julie Muhn (@julieschicktanz) Posted on
Categories: Julie's Column, Thought Leadership

You may not think of the U.S. when it comes to having a czar in a leadership role. However, Axios reported last week that President-elect Trump is considering naming an AI czar that would be responsible for coordinating policy and governmental use of AI. This is notable because, as of now, the U.S. does not have a central agency governing and regulating the use of AI.

If put into power, a U.S. AI czar would potentially be responsible for unifying the country’s AI strategy across government and private sectors. The AI czar would also be charged with creating regulatory clarity and streamlining regulations for AI development in key industries such as fintech, healthcare, and eCommerce. Given the U.S.’s current role in the global economy, an AI czar could play a role in setting global standards for fintech AI regulation.

Benefits

There are some surprising benefits to a potential AI czar taking leadership in the U.S. First, the leader would have the potential to coordinate AI innovation and guide global efforts. This centralized orchestration could accelerate the development of AI-powered fintech solutions like fraud detection, credit scoring, and personalization strategies. Additionally, for both banks and startups, having clear, government-issued guidelines for the use of AI offers many benefits, including increased investor confidence and faster adoption of AI across subsectors. Finally, having an U.S.-led AI strategy could foster cross-border partnerships and may also be able to influence international fintech standards.

Risks

As with many applications of AI, however, there are potential risks and challenges associated with the crowning of an individual as AI czar. First, there is significant potential for favoritism to shape the role. According to Axios, the AI leader will not require Senate consent. Rather, Elon Musk and Vivek Ramaswamy, who Trump has selected to lead the new Department of Government Efficiency (DOGE), will have input into who is selected for the AI czar role. This raises concerns over potential favoritism and bias. Regardless of who is placed in the potential role or how they are appointed, there are also risks that the use of AI will end up over-regulated and that centralizing control of AI usage could stifle fintech innovation across the globe.

Global impact

U.S. policies created under an AI czar might intensify competition with other countries in the AI-arms race. Specifically, the role may help the U.S. compete with China, which has heavily invested in AI. Creating an AI czar could help the U.S. catch up with China by fostering rapid advancements in AI applications in fintech and related fields. In addition to clarifying regulation around the use of AI, the appointed person could help by coordinating research, funding, and partnerships at a national level. This streamlined approach might also encourage collaboration among U.S. fintech companies, making them more competitive in global markets.

What’s next?

Regardless of what happens (or doesn’t happen) with the AI role, both banks and fintechs should pay close attention while monitoring any U.S. AI policy changes. This applies to both firms that are creating their own AI-driven solutions in-house, as well as to those that leverage AI-driven solutions from third party providers. Everyone is in the AI game– whether they think they are or not– and the decisions made by policymakers will shape the rules of that game.

Photo by Marek Pavlík on Unsplash

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Alera Group Partners with TIFIN @Work to Personalize Wealth Management

Alera Group Partners with TIFIN @Work to Personalize Wealth Management
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, TIFIN AG
  • Alera Group has partnered with TIFIN @Work to integrate its workplace benefits and wealth management tools into its FinWell Connect program.
  • The integration will provide employees and advisors personalized financial guidance from Alera Group’s insurance, benefits, and wealth management verticals.
  • Founded in 2023 TIFIN @Work was created by parent company TIFIN to deliver actionable, personalized financial recommendations.

Financial services firm Alera Group has partnered with TIFIN to improve financial wellness among its clients. The Illinois-based firm has integrated TIFIN @Work’s workplace benefits and wealth management platform into its FinWell Connect financial wellness program.

Founded in 2017, Alera Group is the result of the merger of 24 U.S. entrepreneurial firms. The company serves as a broker that offers connectivity to employee benefits, property and casualty insurance, retirement plan services, and wealth services. Under today’s partnership, TIFIN @Work’s tools will be available within its retirement plan services arm.

With the implementation, Alera Group seeks to meet the rising demand for workplace-based financial solutions, and offers FinWell Connect to its employees and advisors. The move makes TIFIN @Work’s tools a bridge between retirement benefits and wealth management.

“Other platforms fill gaps; TIFIN @Work drives true engagement and business growth,” said Retirement Plan Services Executive Vice President and National Practice Leader Christian Mango. “We’re excited to offer a modern solution that benefits both employees and advisors. The partnership with TIFIN @ Work further strengthens Alera Group’s commitment to robust, cutting-edge retirement and wealth solutions.”

TIFIN @Work offers Alera Group’s retirement plan participants personalized, tailored guidance regarding their financial futures. The technology provides actionable solutions by connecting them with financial experts. The platform suggests a solution from Alera Group’s insurance, benefits, or wealth management vertical. As a result, users receive a personalized suggestion at the time of need.

TIFIN @Work is a subset of its parent company TIFIN, a Colorado-based firm that creates and operates companies across a range of fintech sub-sectors. TIFIN’s @Work arm, launched in 2023, offers users AI-powered, personalized insights and actionable recommendations.

“Partnering with Alera Group marks a pivotal step in uniting workplace benefits with wealth management. TIFIN @Work is the bridge from retirement to financial confidence, enhancing employees’ financial journeys and expanding advisors’ reach and impact,” said TIFIN @Work CEO Marc McDonough.

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NuBank Weighs Moving Legal Domicile Location to the U.K.

NuBank Weighs Moving Legal Domicile Location to the U.K.
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Nubank
  • Brazil-based digital bank Nubank is considering moving its legal domicile from the Cayman Islands to the U.K.
  • The domicile move is pending approval from HM Revenue & Customs, as part of the U.K.’s efforts to attract tech companies.
  • The potential move involves legal and tax registration changes rather than relocating management or operational offices, offering potential benefits like a favorable tax environment and better access to international markets.

According to a Bloomberg report yesterday, digital bank Nubank is considering moving its legal domicile to the U.K. This would shift the Brazil-based company’s domicile from the Cayman Islands, where its current holding company is based.

If finalized, the move, which is still pending approval from the U.K.’s HM Revenue & Customs authority, would be part of the U.K.’s initiative to bring more tech companies into the country.

“Nubank continuously reviews its corporate legal structure to align with the footprint of its operations,” a Nubank spokesperson said in a statement. “At this time, no decision has been made regarding the redomiciliation of Nu Holdings Ltd. or any other legal entities within our group. As a publicly traded company, we are committed to transparency and will follow standard communication protocols if and when any such decisions are made.”

Relocating a domicile location is different from shifting headquarters location. The latter would mean moving primary executive offices and central operations to the headquarters location. A headquarters change would impact where the company’s management and administrative functions are based, while a domicile change would primarily come with tax implications.

Moving its domicile to the U.K. would involve Nubank changing its legal registration and tax residency to the U.K. This shift would subject the company to U.K. corporate laws and tax regulations, which could potentially come with benefits, such as a more favorable tax environment or enhanced access to international capital markets.

Since it was founded in 2013, Nubank serves 92 million customers in Brazil, over 7 million in Mexico, and close to 1 million in Colombia. The company surpassed 100 million customers earlier this year and has a strong foothold in Brazil, where its app is found on the phones of around 60% of all Brazilian adults. Nubank, which went public on the New York Stock Exchange in 2021, has a current market capitalization of $65.7 billion.

Photo by David Peterson

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LendingTree Taps Coverdash to Launch Small Business Insurance Offering

LendingTree Taps Coverdash to Launch Small Business Insurance Offering
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, LendingTree
  • LendingTree has partnered with insurtech Coverdash to integrate small business insurance into its platform.
  • Adding insurance solutions complements LendingTree’s existing SMB loan products by helping insured businesses qualify for more financing due to their lower risk profile.
  • The partnership also strengthens LendingTree’s position as a one-stop shop for SMB financial needs, while helping Coverdash expand its reach through a trusted, established brand.

Online loan marketplace LendingTree has partnered with SMB-focused insurtech broker Coverdash to offer LendingTree’s business clients small business insurance. The ability to add Coverdash’s insurance options will be embedded into LendingTree’s platform.

This partnership strengthens LendingTree’s connection with small business owners by broadening its SMB offerings beyond loans to include insurance solutions. LendingTree anticipates that this product expansion will complement its existing SMB loan products, as insured businesses typically present a lower risk profile, enabling them to qualify for additional financing. For Coverdash, today’s partnership with a trusted, established brand like LendingTree will broaden its reach and cement its role as a small business insurance provider.

“We’ve always played an integral role in helping small businesses get off the ground with our loans and financing programs, so offering business insurance was the natural next step,” said LendingTree General Manager, Small Business & Student Loans, Jenn Ash. “This partnership with Coverdash deepens our commitment to supporting our customers’ growth, reinforcing our position as their trusted, long-term partner for all of their financial services needs.”

North Carolina-based LendingTree maintains a marketplace of over 600 financial partners that offer a wide range of personal loans, mortgages, auto loans, and credit cards, and more. By enabling consumers to compare competitive rates and terms, LendingTree empowers individuals to make informed financial decisions. Since it was founded in 1998, the company has served over 120 million customers.

“LendingTree’s legacy in financial services is unmatched, and we’re incredibly proud to have our embedded experience power their expansion into business insurance,” said Coverdash Co-founder and CEO Ralph Betesh. “Meeting financial requirements while starting a business is complex – our partnership lets business owners easily access trusted resources in one place at every stage of their company’s life cycle.”

Founded in 2022, Coverdash is a newcomer to the insurtech space, which is typically dominated by more established companies. Based in New York, Coverdash is licensed in all 50 U.S. states to provide insurance solutions tailored to small businesses, including freelancers, e-commerce operations, and startups. Its offerings span general liability, workers’ compensation, cyber insurance, and more. Earlier this year, the company secured $13.5 million in Series A funding, bringing its total funding to $16 million, according to Crunchbase.

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Google Pay Adds AfterPay and Klarna to BNPL Options

Google Pay Adds AfterPay and Klarna to BNPL Options
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Google, Klarna
  • Google Pay is adding Afterpay and Klarna to its checkout flow, complementing its existing partnerships with Affirm and Zip.
  • Adding more BNPL options at the point of sale will help increase conversion rates and average order values.
  • By offering four BNPL options, Google Pay solidifies its edge over Amazon, which currently provides Affirm as its sole BNPL provider at checkout.

Google Pay is doubling down on buy now, pay later (BNPL) options at checkout. The company announced today that it is adding Afterpay and Klarna to its checkout flow at select merchants. The move will offer consumers more flexible payment options when they use Google Pay.

“People shop on Google more than a billion times per day, and consumers are increasingly looking for more choice and flexibility when it comes to their payment options,” said Google Pay Senior Director Drew Olson. “By teaming up with pay over time providers like Klarna, we are able to give Google Pay users more payment options when checking out, while providing merchants with another tool to drive growth.”

Adding Afterpay, which has 24 million active users, and Klarna, which has 85 million active users, will not only offer more ways to pay but may also lead to increased conversion rates and higher average order values. Customers are more likely to make larger purchases when offered flexible payment solutions.

“Afterpay’s integration with Google Pay comes at the perfect time as next-gen shoppers are fueling mainstream use of BNPL, mobile commerce, and digital wallet use,” said Afterpay and Cash App Head of Global Partnerships Tanuj Parikh. “We are excited to expand our BNPL to Google’s network, creating the best and most streamlined customer shopping experience that meets all the needs of this younger consumer set.”

While Afterpay is now available on Google Pay, Klarna will launch with select merchants in 2025. The company aims to expand the BNPL options to more merchants in the future.

Today’s news comes about a year after Google unveiled that it partnered with Zip and Affirm, two other major BNPL players, to offer Google Pay users BNPL options. While offering four BNPL options at the online point of sale sounds excessive, not all merchants offer every BNPL option at checkout. The selection of BNPL providers is dictated by the agreements between Google Pay, the BNPL services, and the individual merchants.

By expanding its roster of BNPL options, Google Pay strengthens its competitive edge against Amazon, which currently limits point-of-sale BNPL offerings to Affirm. While the exclusivity agreement between Amazon and Affirm ended last year, Amazon has yet to collaborate with additional BNPL providers. Google Pay’s strategic decision to double its BNPL offerings may prompt Amazon to diversify its own consumer payment options.

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Blackhawk Network Teams with Mastercard to Add Paper Prepaid Products

Blackhawk Network Teams with Mastercard to Add Paper Prepaid Products
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Blackhawk Network, Daily news, MasterCard
  • Blackhawk Network (BHN) is transitioning Mastercard’s open-loop prepaid products from plastic to paper-based materials, aligning with Mastercard’s goal to eliminate PVC plastics from payment cards by 2028.
  • As of 2022, 60% of BHN’s physical cards were already paper-based, with the company aiming for 75% by the end of 2023, supported by collaborations with global partners.
  • Today’s collaboration follows a similar partnership with Visa that was formed in 2023.

Branded payments provider Blackhawk Network (BHN) announced this week it is partnering with Mastercard, transitioning its network-branded open-loop prepaid products from plastic to paper-based materials. 

The move will help support Mastercard’s commitment to remove first-use, PVC plastics from payment cards on its network by 2028. It also supports BHN’s sustainability efforts. The California-based company has offered paper-based and recycled products since 2017, and made a pledge in 2022 to convert most of its own original card products to digital or paper.

“Since making our 2022 pledge, we have moved at lightning speed to deliver—and have successfully done so,” said BHN CEO and President Talbott Roche. “As of the end of last year, 60% of the physical cards in our network had been transitioned to paper-based materials, and we are well on our way to achieving our original goal of converting 75% by the end of this year. Taking those initiatives a step further, we are continuing to seek out collaborations with partners like Mastercard, banks, merchants, other card issuers, and manufacturers that operate on a global scale.”

BHN reports that paper-based cards still offer convenience and reliability while posing minimal disruption to consumers, retailers, and issuers. The company is continuing to invest in research and development that will enable the use of paper materials in other channels, including print-on-demand production formats.

“Mastercard’s reach, combined with our own, puts us in a rare position to not only reduce our footprint, but also to lead by example for other companies. We will continue to encourage more businesses to join our efforts and responsibly reduce the environmental impact of the products we use and consume,” added Roche.

The move toward sustainability isn’t the first effort from BHN or major card companies. Last year, BHN announced a partnership with Visa where BHN was helping the card giant transition its open-loop prepaid cards from plastic to sustainable paper-based materials.

Swapping out plastic in favor of paper cards is a good move for prepaid cards, which are often used once or twice and then disposed of. However, it is unlikely we will ever see paper credit or debit cards. Even if they are made to be durable enough to withstand daily transactions, consumers seem to favor thicker plastic and even metal cards, which offer a sense of status and exclusivity.

Photo by DS stories

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Collabria Financial Services Taps Trulioo for Digital Identity Verification

Collabria Financial Services Taps Trulioo for Digital Identity Verification
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Alumni profile, Trulioo

Credit union credit card issuer Collabria Financial Services has teamed up with digital identity verification fintech Trulioo. The Canada-based card issuer will leverage Trulioo to streamline the verification process for new cardholders.

With Trulioo’s verification capabilities, Collabria will enhance its ability to provide fast, compliant, and automated onboarding experiences. Trulioo will fully automate Collabria’s Know Your Business (KYB) review process, complementing its existing Know Your Client (KYC) workflows.

This is particularly impactful given Collabria’s vast reach, serving 98% of Canadian credit unions, which means the benefits of this partnership will extend to millions of credit union members

“The partnership with Trulioo marks a pivotal step forward in enhancing our security measures, while delivering a more streamlined, customer-centric process,” said Collabria CEO Jean-Marc Handfield. “With their cutting-edge technology, we’re elevating our measures against fraud and ensuring a faster and most importantly, safer, more secure experience for our cardholders.”

Trulioo helps organizations verify over 5 billion people by providing real-time verification for a range of identification documents and business entities. Its platform supports more than 13,000 ID documents and 700 million business entities across 195 countries. Additionally, Trulioo conducts checks against over 6,000 watchlists to ensure comprehensive verification.

“At Trulioo, our focus is on providing industry-leading solutions that meet the evolving needs of the payments industry,” said Trulioo CEO Steve Munford. “By combining our intelligent technology with Collabria’s expertise, we’re confident in our ability to enhance their verification processes, improve onboarding outcomes, and open windows of possibilities for their partners and members.”

Earlier this year, Trulioo partnered with Mastercard to integrate Mastercard’s identity solutions into its Person Match and Risk Intelligence products. This collaboration provides Trulioo with access to identity and risk scores through a customizable, user-friendly dashboard, expanding its offerings beyond API-based products and further streamlining its onboarding processes.

Headquartered in Canada and founded in 2011, Trulioo has raised $475 million. The company has demoed at 10 Finovate events, most recently showcasing its identity platform at FinovateEurope 2023.

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Back to the Future with Global Payments Trends

Back to the Future with Global Payments Trends
By Julie Muhn (@julieschicktanz) Posted on
Categories: Report series

Global payments have been gaining popularity in fintech over the past few months. There is increasing demand for faster, safer, and cheaper payment opportunities as cross-border trade activity escalates.

As McKinsey points out, however, payments are becoming disconnected from users’ accounts as platform-as-a-service (PaaS) and embedded payments models rise in popularity. These models, which often provide a more seamless and tailored customer experience, may pose a challenge for banks. That’s because, in many cases, banks may need to build new businesses to keep their existing customers.

In its latest report, McKinsey offers data highlighting the growth of global payments revenues and details six trends that will define the next five years in the global payments landscape. While the report is full of valuable stats. Here are the points that I found most notable.

Historical unicorns prove promising

Over the past 10 years, the number of payments unicorns grew from 39 to 384, a group that boasts a combined valuation of $1 trillion. Though decreased funding and downrounds have slowed the growth of new payments unicorns, their track record has proven that, when the fintech sector begins to boom again, we will likely see a boost in high-value payments fintechs.

Growth of global payments revenue

Last year, the global payments industry processed 3.4 trillion transactions worth $1.8 quadrillion that generated $2.4 trillion in revenue. While this revenue figure has grown 7% each year since 2018, McKinsey estimates the growth will slow to 5% per year for the next five years.

Cash usage tanks

Since 2019, cash usage across the globe has dropped by 20%. The report notes that global cash usage continues to decline at 4% a year, but developing economies are experiencing a faster rate of decline than that of the U.S., where card usage has long been popular. While this report doesn’t mention it, countries with government-led payment schemes such as India (with UPI) and Brazil (with PIX) are also seeing a major decline in cash payments. In India, while cash payments still account for 60% of consumer expenditure, digital payments have doubled in the past three years.

CBDCs are more relevant than ever

According to the report, “More than 90% of central banks are pursuing or considering central bank digital currency (CBDC) projects, and more than 30 have rolled out pilots.” This figure was quite surprising, as I haven’t looked into CBDC projects since 2021, when only 43 countries were exploring the use of a CBDC. Despite U.S. hesitation to pilot a CBDC, I think we’ll see more discussion on the topic in 2025 as crypto grows and the environment becomes more crypto-friendly.

We know fraud is up, but by how much?

McKinsey’s report estimates that losses from global payment card fraud will reach $400 billion over the next ten years. Regulators have stepped up their efforts by increasing pressure on banks to comply, and as a result AML fines reached an all-time high, soaring past $6 billion last year.

Check out the entire McKinsey report for a better picture of today’s global payments landscape. With trends like embedded payments, declining cash usage, the increasing relevance of CBDCs, and the ever-present threat of fraud, players in the payments industry will need to not only innovate, but also to collaborate to remain competitive.

Photo by Aslı Yılmaz on Unsplash

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Revolut Earns U.K. Trading License from the FCA

Revolut Earns U.K. Trading License from the FCA
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Revolut
  • Revolut has received FCA approval to offer U.K. and E.U.-listed stock and ETF trading.
  • The new service is expected to roll out in 2025 for its nine million U.K. customers.
  • Revolut’s U.K. stock trading offering will allow it to compete with established platforms like Trading 212, Freetrade, Hargreaves Lansdown, and AJ Bell.

Global challenger bank Revolut announced today that the U.K. Financial Conduct Authority (FCA) has granted it a license to offer trading services on U.K. and E.U.-listed stocks and ETFs.

Revolut, which cemented its reputation as Europe’s most valuable fintech after receiving a $45 billion valuation, launched in 2014. The company initially launched stock market trading capabilities for U.S. stocks in 2019.

Revolut’s U.K. trading service will roll out in 2025 for its nine million U.K. customers. Once the service is launched, the company will compete against Trading 212, Freetrade, Hargreaves Lansdown, and AJ Bell; which all offer U.K. trading stock trading services.

Today’s news comes three months after Revolut received its banking license from the U.K. Prudential Regulation Authority (PRA). The long-awaited license allows the fintech to take and hold deposits, as well as sell financial products such as loans, credit cards, overdraft protection, and savings accounts to U.K. consumers.

Previously, Revolut was able to offer an investment service to its U.K.-based traders which allowed its 650,000 users to trade U.S. stocks through fractional shares using Revolut’s app. That service was made possible via a partnership with DriveWealth, a U.S.-based fintech that facilitates investing-as-a-service for third party companies.

U.K.-based Revolut chose to launch equities trading in the U.S. over the U.K. likely because of the higher demand for U.S. stocks such as Apple, Amazon, and Tesla. These companies have captured the attention of global retail investors because of their significant growth. By prioritizing U.S. equities, Revolut capitalized on this demand and aligned its offering to suit the interests of its tech-savvy user base.

Adding U.K. trading will offer Revolut another cross-sell opportunity, helping it to further compete with traditional financial institutions that are able to help users manage multiple facets of their clients’ lives. The move not only diversifies its product portfolio but also strengthens its position in an increasingly competitive fintech market.

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Visa Expands its Flexible Credential Card to the U.S.

Visa Expands its Flexible Credential Card to the U.S.
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, VISA
  • Visa’s Flexible Credential card is now available in the U.S. and U.A.E., offering cardholders flexibility to pay from multiple account funding sources.
  • In the U.S., Affirm will integrate VFC into its buy now, pay later (BNPL) Affirm Card, while UAE-based Liv will leverage VFC to enable multi-currency transactions through a single card.
  • The VFC is similar to Curve’s multi-payment card offerings, however, Visa’s VFC requires users to select the payment type before transactions.

Payments giant Visa announced earlier this week it has expanded its Visa Flexible Credential (VFC) payment card to launch in both the U.S. and the U.A.E. The unique credit card allows users to pay from different account funding sources, ultimately offering cardholders more options and greater control over how they pay.

In the U.S., VFC will roll out in partnership with buy now, pay later (BNPL) company Affirm. The BNPL company will use VFC for its Affirm Card. With 1.4 million consumers, the Affirm Card offers consumers flexibility to pay at the time of their transaction or pay over time in the Affirm app.

“We’re excited about the partnership we’ve formed with Visa,” said Affirm CEO Max Levchin. “Since our founding, our mission has remained the same — build honest financial products that improve lives. Part of building better financial products also means giving consumers more control and flexibility, which has always been a key feature of the new Affirm Card. We look forward to bringing millions more people a product that seamlessly brings debit and credit together, without late or hidden fees.”

In the U.A.E., the VFC card will launch in partnership with digital banking platform Liv, which will enable cardholders to access multiple currency accounts from a single card. The VFC will automatically route the transaction to the account with the selected currency. Cardholders can use the Liv mobile app to move money between local and foreign currency accounts.

“At Liv we stay true to our promise of providing the most innovative products to our customers,” said Emirates NBD Chief Digital Officer, Retail Banking and Wealth Management, Pedro Sousa Cardoso. “As the UAE’s first digital bank, we are pleased to collaborate with Visa to offer our customers a simple, flexible card solution that better serves their evolving financial needs.”

“Working with innovative partners like Affirm, Liv and SMCC helps us turn that idea into a reality. Together we’re enabling more ways to pay and adapting to the unique needs of consumers – wherever they are in the world, or in their financial journey,” said Visa Chief Product and Strategy Officer Jack Forestell.

VFC first launched just over a year ago in Japan through a partnership with Sumitomo Mitsui Card Company (SMCC), which uses VFC to power its Olive card. Today, SMCC has more than three million cardholders using the Olive card, 70% of which use the card to toggle between different account funding sources like debit, credit, and prepaid.

Visa plans to roll out its VFC to other geographies in the future.

Overall, there are not many card companies competing on Visa’s VFC. COIN, a digital smart card that promised to replace all of the cards in consumers’ wallets, tried and failed in 2016.

Today, the strongest competition in the multi-payment type card market comes from U.K.-based Curve, which offers a credit card that allows users to toggle between different payment cards. Unique to Curve, users can spare themselves from embarrassment at the point of sale with the Anti-Embarrassment mode that allows the payment to go through even if the card is declined (with restrictions). Curve also offers a Go Back in Time feature that enables users to change which card is used for a transaction up to 30 days after the fact. 

With Visa’s VFC, however, cardholders must choose the funding source or payment type for their transaction before they initiate the purchase. It does not allow them to retroactively change the payment type or card type after a transaction is completed.

Photo by Rann Vijay

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Streamly Snapshot: Upgrading Your Digital Knowledge Management

Streamly Snapshot: Upgrading Your Digital Knowledge Management
By Julie Muhn (@julieschicktanz) Posted on
Categories: Interview, Streamly

With digital rising to the preferred channel for audiences across the globe, it is more important than ever for firms to manage their brands’ digital presence. Organizations no longer need to just worry about sending out consistent messaging, they also need to ensure that the information that search platforms are sharing about them is correct and consistent in order to uphold their reputation

Earlier this fall, Finovate Research Analyst David Penn spoke with Stuart Greer, VP of Enterprise Sales at digital presence platform Yext to get an idea of how the company not only helps brands manage their reputation, but also with managing information on data aggregators about their physical locations, setting up , and more.

“One of the biggest things I’d say that large enterprise financial services companies deal with… is their online presence across all of the platforms, said Greer. “Yext is a digital presence platform that essentially helps multi-location businesses. When you think about multi-location businesses, you can think of banks, ATMs, wealth advisors, insurance agents– anyone who has that presence online.”

Yext was founded in 2006 to help brands with multiple locations manage their digital presence. Companies can leverage Yext’s platform to ensure they deliver accurate, consistent information, while connecting with customers across the globe via digital channels. The New York-based company leverages AI to automate workflows at scale and provide actionable insights to do everything from enhance SEO to manage social media reputations. Michael Walrath is CEO.

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Payfinia Receives $4.5 Million from Star One Credit Union to Launch CUSO

Payfinia Receives $4.5 Million from Star One Credit Union to Launch CUSO
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Payfinia has launched a new Credit Union Service Organization (CUSO) to help credit unions modernize their payments experience.
  • The CUSO is launching in partnership with Star One Credit Union, which invested $4.5 million in the organization.
  • Payfinia’s IPX platform will play a key role in the CUSO, helping organizations leverage FedNow to offer instant payments while providing fraud prevention.

Payfinia, which was recently spun out of digital banking tools provider Tyfone, unveiled it has launched a Credit Union Service Organization (CUSO) called the Payfinia CUSO. The aim of the new Payfinia CUSO is to “support payments modernization solutions and embedded fraud controls through an open payments platform for credit unions and industry partners.”

The launch comes in partnership with California-based Star One Credit Union, which invested $4.5 million in the organization. Star One Credit Union originally partnered with Payfinia parent company Tyfone to build Instant Payment Xchange (IPX), a payments-as-a-service (PaaS) framework to send and receive instant payments via FedNow.

Interestingly, Star One Credit Union used IPX’s direct integration with Tyfone’s nFinia Digital Banking Platform to send the $4.5 million in Seed funding. Payfinia used IPX’s fraud prevention capabilities to tailor user controls and permit higher transaction limits, allowing the funding to be sent in $500,000 increments to its account at U.S. Bank. Each transaction settled in less than five seconds.

“Star One is proud to support Payfinia and its vision of making instant payments accessible to all account holders in the U.S.,” said Star One CEO Gary Rodrigues. “The IPX solution empowers our members to take control of their cash flow. So far, the IPX solution has displaced 25% of same-day ACH transactions, with 53% fewer fraud losses compared to same-day ACH and an 83% reduction in operational overhead for P2P payment networks.”

The IPX platform was originally launched by Tyfone in July of 2023 in conjunction with the Federal Reserve’s FedNow instant payment service. Since launch, IPX has converted nearly 30% of same-day ACH credit transactions into send transactions on push instant payment systems, routing existing payment solutions through networks like FedNow.

As part of today’s announcement, Payfinia is also partnering with firms— including core processors, third-party digital platform providers, and fintechs— to help them leverage IPX to embed instant payment capabilities within their digital offerings.

“Limited resources, legacy systems, fraud mitigation, and costs to implement new payment services are primary challenges that hinder community-based institutions from adopting instant payment capabilities,” said the Payfinia CUSO General Manager Keith Riddle. “Payfinia is building an ecosystem that overcomes these limitations, enabling an open-provider approach that meets the diverse needs of community financial institutions. The IPX platform provides institutions with scalable, effective and affordable payment solutions.”

The launch of the Payfinia CUSO is a valuable addition to the CUSO landscape, as it will address the growing demand for instant payments and payment modernization among credit unions. Historically, credit unions have faced challenges in adopting real-time payment capabilities due to limited technological resources, legacy systems, and the high costs that come with upgrading technology.

Because Payfinia’s CUSO is an open payments platform, it offers credit unions an approachable and affordable path to instant payments. The open-provider approach differentiates Payfinia’s CUSO from other CUSOs because it facilitates collaborations among core processors, digital platform providers, and fintechs.

Photo by fauxels

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