Daily news

PayPal to Ship Physical Credit Card

PayPal to Ship Physical Credit Card
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, PayPal
  • PayPal launched a physical credit card, expanding PayPal Credit’s reach from online use to in-store purchases, with no annual fee and flexible repayment options for travel purchases.
  • At launch, the card is offering buy now, pay later flexibility that will allow customers to spread travel costs over six months and access additional BNPL loans at checkout.
  • Despite its practicality, PayPal’s new card takes a more conventional approach compared to other fintechs that offer bold designs, tiered rewards, or unique incentives like stock or credit-building tools.

In a time dominated by digital payments, physical cards are holding strong. This week, fintech pioneer PayPal introduced a new physical credit card, extending the reach of PayPal Credit from online purchases to in-store payments.

The new card, which is issued by Synchrony, will allow customers to leverage buy now, pay later (BNPL) payment options. At launch, new card customers will have the option to pay for their travel purchases made by January 31, 2026, over the course of six months. Leveraging the BNPL model in combination with the flexibility of a credit card gives account holders more ways to pay for travel purchases by spreading the cost over time to best suit their cash flow.

For further payment flexibility, customers can also apply for a PayPal Buy Now Pay Later loan at the point of sale to break their purchases into smaller payments over weeks or months. The card also comes with no annual fee, purchase protection, ID theft protection, and travel concierge services.

“PayPal Credit is one of our most popular products and customers have long been requesting the ability to use it on-the-go as they look for more choice and flexibility wherever they shop,” said PayPal SVP, Global Head of Consumer Financial Services Scott Young. “From our buy now pay later options to our credit cards, we continue to bring customers a range of solutions to help them manage cash flow and pay in the ways that suits their budgets for the things they love and need.”

Credit is not new to PayPal. The company launched PayPal Credit, formerly known as Bill Me Later, in 2008, after PayPal’s then-parent company eBay acquired Bill Me Later for $945 million. Physical cards are not new for PayPal, either. The California-based company launched its Business Debit Mastercard in 2003 and began issuing debit cards for Venmo users in 2018.

PayPal said that the physical card will begin rolling out “in the coming weeks” to US customers.

PayPal’s move into physical credit cards comes as no surprise, but its approach is. While many consumer-facing fintechs have leaned into creative card designs and differentiated perks like sleek metal cards, bold rainbow finishes, or eco-friendly recycled materials, PayPal has opted for a more traditional route. Other fintechs have layered in tiered rewards, credit-building features, or even stock-based incentives. Though PayPal’s flexible repayment option for travel purchases adds some value, its new card feels relatively conservative compared to the more imaginative offerings from its fintech peers.

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Feedzai Launches Fraud Intelligence Solution Feedzai IQ

Feedzai Launches Fraud Intelligence Solution Feedzai IQ
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Feedzai
  • Feedzai has launched Feedzai IQ, a fraud intelligence solution that uses anonymized, distributed data to deliver real-time risk assessments without compromising customer privacy.
  • Key features include TrustScore and TrustSignals, which provide network-wide fraud risk scores and indicators to improve accuracy and payment acceptance.
  • Early adopters like Jack Henry and Novobanco are piloting the solution, signaling a growing industry shift toward collaborative, AI-driven fraud prevention.

Risk management provider Feedzai unveiled today that it has launched Feedzai IQ, a new fraud intelligence layer that uses anonymized, network-wide data to detect financial crime in real time without compromising privacy.

Unlike traditional data-sharing models that raise privacy and compliance concerns, Feedzai IQ uses anonymized, distributed data to generate real-time fraud insights without sharing raw customer data. This allows financial institutions to tap into the collective intelligence of the network while protecting sensitive information.

“We’ve always believed that the true power of AI is only unlocked through access to meaningful, high-quality data,” said Feedzai Chief Product Officer Pedro Barata. “While AI is surrounded by hype today, Feedzai has led the way in applying real AI to real problems—and now, with Feedzai IQ, we’re combining our AI expertise with secure, network-wide intelligence. It’s a breakthrough that takes fraud prevention to an entirely new level.”

Key elements to Feedzai IQ are TrustScore, which offers a real-time fraud risk score based on network-wide intelligence; and TrustSignals, risk indicators that increase accuracy and improve payment acceptance.

Among the firms piloting Feedzai IQ are industry leaders Jack Henry and Novobanco, signaling growing demand for fraud intelligence tools that balance security and customer experience. “Technology is enabling increasingly sophisticated fraud threats,” said Matt Riley, President of Complimentary Solutions at Jack Henry. “Innovations such as Feedzai IQ contribute significantly to the industry’s ability to adapt to emerging threats and enhance operational effectiveness.”

Feedzai was founded in 2011 as a risk operations platform specializing in identity verification, fraud prevention, and financial crime detection. The company’s AI-powered solutions span KYC, AML, watchlist screening, and transaction fraud monitoring to help financial institutions stop fraud in real time without compromising the customer experience. Today, Feedzai protects over one billion consumers in more than 190 countries and safeguards over $8 billion in transactions annually.


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KeyBank Taps Personetics to Give Customers Insights into Spending

KeyBank Taps Personetics to Give Customers Insights into Spending
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Personetics
  • KeyBank has partnered with Personetics to integrate AI-driven financial wellness tools that offer real-time, personalized advice based on customers’ spending.
  • The bank will use Personetics’ Engage platform to deliver insights that help users make smarter financial decisions.
  • The move will help boost engagement and foster long-term customer loyalty.

KeyBank announced this morning that it has partnered with Personetics to bring financial wellness to its customers. The Ohio-based bank will leverage Personetics’ Cognitive Banking platform, which analyzes consumer transactions and delivers advice.

Specifically, KeyBank will use Personetics’ Engage, a client experience that offers customers spending insights and recommendations based on their spending and savings habits.

KeyBank will implement Personetics’ Engage solution, which uses AI to deliver real-time, personalized insights based on customers’ spending and saving patterns. By identifying trends and anticipating future needs, Engage offers timely, actionable advice to help users make smarter financial decisions and reach their goals in order to transform the banking experience from transactional to advisory.

By embedding Personetics’ cognitive banking tools into its digital offering, KeyBank will help improve customer engagement, reduce attrition, and create new revenue opportunities through better financial outcomes.

“KeyBank’s mission is to help clients and communities thrive. A large part of that mission centers in helping clients move forward on their financial journeys and reach their financial goals,” said KeyBank Head of Consumer Digital Emily Gessner. “By leveraging Personetics’ platform and experience, we will address the financial burden and stress consumers face by empowering our clients with real-time insights and guidance to help them effectively manage their financial futures.”

KeyBank was founded in 1825 and has 1,000 branches across the US. The bank has acquired AQN Strategies, HelloWallet, First Niagara Financial Group, EverTrust Financial Group, Leasetec, and most recently BaaS provider XUP. Among the company’s strategic partners are AvidXchange, BillTrust, and Bill.com.

Headquartered in New York, and with offices in London, Tel Aviv, and Singapore, Personetics counts more than 150 million bank customers across the globe. The fintech was founded in 2010 and strives to help banks create “self-driving finance” experiences for its customers. Under this concept, banks leverage AI to proactively act on behalf of their clients to help them achieve their financial goals.

“This partnership isn’t just about innovation—it’s about using intelligent technology to forge deeper human relationships between banks and the people they serve,” said Personetics CEO Udi Ziv. “Cognitive Banking redefines how banks understand and support their customers and, as a result, fosters customer loyalty.”

Photo by Magda Ehlers

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Block to Launch Bitcoin Payments on Square

Block to Launch Bitcoin Payments on Square
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Block is launching Bitcoin for Businesses, a new feature that enables Square merchants to accept bitcoin payments via the Lightning Network, starting in late 2025.
  • The feature builds on Block’s existing Bitcoin Conversions tool, which allows merchants to automatically convert a portion of sales into bitcoin and offer seamless QR code payments.
  • This move reinforces Block’s commitment to bitcoin adoption and helps integrate crypto into everyday commerce.

Block is bringing bitcoin to the point of sale. The company behind Square announced this week that it will launch Bitcoin For Businesses, enabling merchants to accept bitcoin payments directly on Square hardware using the Lightning Network, a decentralized network using blockchain smart contracts for instant, low-cost payments.

The new offering on Square’s Point of Sale app leverages the Lightning Network to facilitate near-instant, low-cost transactions. Square’s integration calculates the real-time exchange rate and sends confirmation notifications.

This new functionality builds on Bitcoin Conversions, a feature Block launched in 2024 that allows merchants to automatically convert a portion of daily sales into bitcoin, accept bitcoin payments via QR code, and benefit from real-time exchange rates and instant confirmation. Combined, Bitcoin For Business and Bitcoin Conversions will create a more seamless experience for merchants, letting customers pay with bitcoin by scanning a QR code at checkout.

“Block has long been a champion of bitcoin, focused on making it more accessible and usable in our everyday lives,” said Block Bitcoin Product Lead Miles Suter. “Rolling out a native bitcoin experience to millions of sellers brings us one step closer to that goal. When a coffee shop or retail store can accept bitcoin through Square, small businesses get paid faster, and get to keep more of their revenue. This is about economic empowerment for merchants who like to have options when it comes to accepting payments.”

Bitcoin For Business will roll out in the second half of 2025 and is expected to reach all eligible Square sellers in 2026, subject to applicable regulatory approvals.

With Bitcoin For Businesses, Block is turning Square into a crypto-native payment network that offers merchants more payment flexibility while embedding bitcoin into everyday financial activity. The launch is another step toward Block’s long-term vision of turning Cash App, Square, and its open-source tools into the default platform for both traditional and decentralized finance.

Block, which rebranded from Square in 2021, offers a host of other bitcoin-based tools, including Cash App’s bitcoin buy, sell, and transfer capabilities; Bitkey, a bitcoin wallet; Proto’s bitcoin mining products and services; and Spiral, which builds and supports open-source bitcoin projects that promote economic empowerment.

Block is also well known for its purchase of Afterpay in 2022. The company rebranded Afterpay to Cash App Afterpay earlier this year. Block anticipated the name change to fully integrate Afterpay into Cash App, helping Block to turn Cash App into a one-stop financial platform.

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Griffin Launches MCP Server for Agentic AI Banking

Griffin Launches MCP Server for Agentic AI Banking
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Griffin has opened access to its MCP (Model Context Protocol) server, enabling developers to build AI-powered agentic applications that can simulate tasks like account opening, payments, and financial analysis.
  • The MCP server is currently available in a sandbox environment, allowing users to prototype autonomous finance workflows.
  • Griffin acknowledges that the launch is still in its early stages, but says that it shows what’s possible when it comes to agentic AI.

UK-based BaaS fintech Griffin announced today that it is opening up access to its MCP server. The new server, which is currently in beta, offers a new way for users to build agentic applications directly on the banking system.

Griffin customers can use the MCP server to have an agent open accounts, make payments, and analyze historic events. They can also use it to build prototypes of their fintech applications on top of the Griffin API. Griffin acknowledges that it’s still early days for development in the agentic applications space, but adds that its new MCP server shows what’s possible.

“There have been a few test cases floating around of people getting AI agents to engage in financial transactions, but these are generally limited to proofs-of-concept like getting an agent to buy a cup of coffee,” the company said.

While agent access is limited to the company’s sandbox environment, some of the potential future use cases will allow AI to serve as an end-to-end wealth manager, enabling AI to handle administrative tasks, and allowing customers to build their own personalized agent to handle their money in a tailored and relevant way.

Griffin’s MCP server launch will offer developers tools to simulate autonomous financial workflows and marks a step toward turning agentic finance from theory into action. While many AI tools for financial services are currently limited to narrow use cases like chatbots, Griffin is building infrastructure that could allow agents to directly open accounts, initiate payments, and manage money autonomously. If agentic applications mature, the MCP server could evolve firms’ AI use from chatbots to fully autonomous wealth managers.

Griffin was founded in 2017 and offers BaaS tools that include client onboarding, regulatory compliance safeguards, client money accounts, and payments. The company’s direct banking tools include operational accounts, credit, and lending. It also offers embedded bank accounts, client accounts, API-enabled payment options, and client onboarding tools.

Last year, after receiving a $24 million (£19 million) Series A extension round, Griffin revealed that the UK Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) granted it approval to launch as a fully operational bank.

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Acrisure to Acquire Heartland Payroll Solutions for $1.1 Billion 

Acrisure to Acquire Heartland Payroll Solutions for $1.1 Billion 
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Mergers & Acquisitions
  • Acrisure is acquiring Heartland Payroll from Global Payments for $1.1 billion, expanding its payroll and Human Capital Management (HCM) capabilities.
  • The deal positions Acrisure as a full-stack fintech platform that will bundle services like insurance, compliance, billing, and payroll to drive retention and deepen client relationships.
  • The deal is expected to close in the second half of this year.

Fintech firm Acrisure announced today that it has agreed to acquire Global Payments-owned Heartland Payroll Solutions for $1.1 billion.

The deal is expected to close in the second half of this year, at which point Heartland Payroll will be rebranded. Acrisure anticipates the purchase will significantly expand its current payroll and Human Capital Management (HCM) capabilities and help it become a top fintech solutions provider for millions of small and medium-sized businesses.

“This significant acquisition accelerates our successful transformation into a fully scaled and diversified fintech platform,” said Acrisure CoFounder, Chairman, and CEO Greg Williams. “We prioritize the needs of our clients and increasingly, that’s a tech-oriented solution that streamlines their back-office operations in important verticals like payroll, compliance and billing,” Williams added. “We’re incredibly excited about partnering with the Heartland Payroll team and look forward to growing this business together.”

Heartland Payroll was founded in 1997 and currently provides payroll solutions, HCM software, and other business services to more than 50,000 clients. Global Payments President Vince Lombardo will join Acrisure as part of the transaction, taking on a new role as the CEO of Heartland Payroll.

“Acrisure’s strategic acquisition of Heartland Payroll marks an exciting milestone for our team and will provide our business with sharper focus, accelerated growth, and greater investment,” said Lombardo. “I’m honored to join Acrisure and work alongside Greg and the incredible team he’s built as we continue to build the most comprehensive provider of financial service products for businesses around the world.”

Acrisure recently raised $2.1 billion in a funding round led by Bain Capital, boosting the company’s valuation to $32 billion. The company offers insurance, reinsurance, real estate services, cybersecurity defense tools, payroll, and other services to small and medium-sized businesses. 

Acrisure’s acquisition of Heartland Payroll is more than just a $1.1 billion transaction. It’s a clear signal that fintech consolidation is accelerating, especially in the SMB segment. By integrating payroll and HCM capabilities into its expanding suite of services, Acrisure is positioning itself as a one-stop fintech platform for SMBs. In today’s increasingly crowded market, offering bundled solutions across insurance, compliance, billing, and payroll gives Acrisure a compelling edge and incentivizes businesses to stay in its ecosystem.

For Global Payments, selling off Heartland Payroll suggests a strategic shift toward focusing on its core payments business. For Acrisure, it’s a leap forward in becoming a full-stack fintech provider. It is also a signal that payroll and HCM are no longer just HR functions, but new areas of competition for fintechs.

Photo by Designecologist

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Circle Officially Launches its IPO

Circle Officially Launches its IPO
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Circle has officially launched its IPO, aiming to raise $624 million at a $6 billion valuation under the ticker CRCL on the NYSE.
  • The company may use the proceeds to expand globally, strengthen compliance, and develop new tokenized financial products as it competes with Tether and other stablecoin issuers.
  • The IPO announcement comes four years after Circle’s failed SPAC attempt in 2021.

Stablecoin issuer and infrastructure company Circle is bringing positive news to fintech this week. The Massachusetts-based company announced the launch of its IPO.

The announcement comes four years after initially trying to go public via a $9 billion special purpose acquisition company (SPAC) in 2021 with Concord Acquisition Corp. The agreement was terminated in 2022 due to regulatory hurdles and shifting market conditions. The direct IPO route that Circle ultimately settled on is a better way to provide more transparency and stability for investors.

Proceeds from Circle’s IPO could fuel its international expansion, strengthen compliance efforts, and support the development of new tokenized financial products. These investments will be essential as Circle competes with traditional payment networks, other stablecoin issuers such as Tether, and new stablecoins that come online.

Circle is looking to raise about $624 million at a valuation around $6 billion on the New York Stock Exchange and will be traded under the ticker CRCL. The shares are expected to be priced between $24 and $26 per share, which will value Circle at around $5.65 billion.

Circle was founded in 2013 and is best known for launching USDC, a fully reserved, dollar-backed stablecoin that has $62 billion in circulation and has facilitated more than $28 trillion in on-chain settlement volume since launching in 2018.

One crypto player that is potentially set to benefit from Circle’s success is crypto exchange and wallet Coinbase, which cofounded USDC and has a 50% revenue sharing agreement with Circle. Additionally, Coinbase takes home 100% of the interest earned by USDC products on its platform. Coinbase went public in 2021 via an $86 billion direct listing on the NASDAQ under the ticker COIN. In comparison, Circle’s $6 billion IPO is significantly smaller.

Circle’s IPO comes at a time when the US is providing clearer regulatory frameworks for stablecoins, and demand for tokenized assets is growing in the traditional finance space. The move also signals rising investor confidence in digital assets and showcases how the use of stablecoins is maturing.

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R3 and Solana Team Up, Merging TradFi and DeFi 

R3 and Solana Team Up, Merging TradFi and DeFi 
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, R3
  • R3 and Solana have partnered to bring regulated financial institutions and real-world assets (RWAs) onto Solana’s public blockchain, aiming to bridge TradFi and DeFi ecosystems.
  • The integration enables native interoperability between R3’s Corda platform, private networks, and Solana, supporting tokenized assets, stablecoin settlement, and compliance.
  • R3 announced that Solana Foundation President Lily Liu is joining its board.

Traditional finance (TradFi) and decentralized finance (DeFi) are slowly beginning to merge. Today’s partnership between distributed ledger technology company R3 and Web3 infrastructure player Solana is a step in this direction. The two have teamed up to bring financial institutions and their real-world assets onto Solana’s public blockchain.

R3 was founded in 2014 to offer real-world asset (RWA) tokenization and interoperability solutions. Today, R3 is helping digitize markets by bridging its on-chain RWA ecosystem with DeFi. Today, the company has over $10 billion in regulated assets on-chain across its platforms.

“After years of laying the groundwork, R3 is ready to bring our experience and our network of regulated financial institutions towards a new public future with one of the best and most trusted public ecosystems—Solana,” said R3 CEO David E. Rutter. “This is more than a milestone; it’s a strategic realignment for the entire industry. We know DeFi isn’t coming to TradFi, so it’s up to us to build the connective infrastructure that links these two ecosystems. This is about adapting to deliver real-world utility, institutional-grade readiness, and shaping the long-term future of regulated markets.”

As one of the most used public blockchains, Solana boasts low transaction fees, speed, scalability, and a global ecosystem. With favorable regulation and increased investor confidence, the companies have seen financial institutions become increasingly comfortable leveraging public networks.

Integrating with Solana’s blockchain will enable R3’s on-chain assets to meet the growing demand on public networks and unlock new settlement options like stablecoins. Unlike traditional approaches, R3’s tokenized RWAs can be confirmed directly on Solana Mainnet.

Additionally, Solana and R3 will enable native interoperability between its existing Corda platform, other private networks, and Solana. This will help bridge the gap between permissioned and public blockchain ecosystems, ultimately enabling regulated financial institutions to benefit from the openness and efficiency of Solana while maintaining compliance, security, and control of their assets.  

As part of today’s announcement, Solana Foundation President Lily Liu will join R3’s Board of Directors.

“This is a major step forward for the institutional adoption of public blockchain,” said Liu. “R3’s decision to bring its regulated financial network onto Solana is powerful validation that public blockchains have reached institutional readiness. With Solana’s unmatched performance, enterprise-grade permissioning, and growing roster of regulated assets, we’re not just witnessing convergence between TradFi and DeFi—we’re enabling it. This collaboration signifies that the future of capital markets will be built on public infrastructure. We’re thrilled that the Solana ecosystem is leading the way.”

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Circle Goes Live with the Circle Payments Network

Circle Goes Live with the Circle Payments Network
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Circle has launched the Circle Payments Network (CPN) to modernize the $190 trillion cross-border payments market with blockchain-based, near-instant settlement.
  • CPN enables financial institutions to securely exchange payment instructions and settle transactions using USDC on public blockchains.
  • Circle’s initial focus with CPN is on high-value, underserved global trade corridors.

Stablecoin issuer and infrastructure company Circle unveiled this week that the Circle Payments Network (CPN) mainnet is now live. With CPN, Circle is hoping to disrupt the $190 trillion cross-border market and bring stablecoins mainstream for cross-border payments.

“The launch of CPN represents a leap forward for global payments infrastructure toward an architecture where interoperability, compliance, speed, and cost-efficiency are emphasized,” said Circle VP of Product Management Sunil Sharma. “We are just getting started. As more institutions integrate with CPN, we look forward to powering new use cases, and advancing this new standard for global value exchange.”

Cross-border payments currently depend on legacy infrastructure that is fragmented, slow, and manual. With CPN’s compliance-first payments coordination protocol, financial institutions can exchange payment instructions securely while settling transactions on open, public blockchains in near-real-time.

According to the World Bank, cross-border payments can take up to five days to settle and cost an average of 6.3% per transaction. CPN’s near-instant settlement and cost-efficiency could significantly reduce both time and expense, especially for businesses operating across emerging markets.

CPN combines the reliability of traditional payment systems with the benefits of blockchain rails, which adds openness and speed. With CPN, Circle hopes to bring the benefits of blockchain settlement in global commercial payments. Network participants can enroll as originating financial institutions (OFIs) and/or beneficiary financial institutions (BFIs) for:

  • B2B supplier payments
  • Cross-border remittances
  • Treasury and global cash consolidations
  • Recurring enterprise payments, including subscriptions 
  • Payroll and mass disbursements

CPN hinges on demand for dollar-backed stablecoins from international markets in which access to fiat dollars is expensive and slow. Because of this, Circle is currently focusing CPN on serving organizations transacting in high-value, underserved global trade corridors that rely on fiat dollars. Active partners in the CPN mainnet include Alfred Pay, Tazapay, Redotpay, and Conduit.

“Throughout 2025,” added Sharma, “we will continue to explore and focus on providers who can serve additional markets that could potentially include Nigeria, the European Union, the United Kingdom, Colombia, India, the United Arab Emirates, China, Turkey, the Philippines, Vietnam, and Argentina.”

Circle was founded in 2013 and is best known for launching USDC, a fully reserved, dollar-backed stablecoin that has facilitated over $28 trillion in on-chain settlement volume since launching in 2018.

With the launch of CPN, Circle is positioning itself not just as a stablecoin issuer, but as a global payments infrastructure provider. As adoption grows and more institutions join the network, Circle’s compliance-first, blockchain-native approach could help to bring stablecoins into the traditional financial system.

Photo by Jimmy Chan

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Greenlite AI Lands $15 Million in Series A Funding

Greenlite AI Lands $15 Million in Series A Funding
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding
  • Greenlite AI raised $15 million in Series A funding led by Greylock to expand its agentic AI platform for compliance automation in financial services.
  • The company’s AI agents automate KYC, AML, and sanctions workflows while embedding regulatory guidance into every process via its proprietary Trust Infrastructure.
  • Customers like Ramp, Betterment, and Mercury report 3x to 4x ROI within 12 weeks, as Greenlite helps them scale compliance efforts without adding headcount.

Agentic AI platform for financial services Greenlite AI has raised $15 million in Series A funding this week. Led by Greylock, the investment brings the San Francisco-based company’s total raised to $20 million. Thomson Reuters, Canvas Prime, Y Combinator, and other angel investors also participated.

Greenlite was founded in 2023 to help financial services companies automate manual work. The company’s screening alerts, transaction monitoring alerts, customer due diligence, and enhanced due diligence tools help automate Know Your Customer (KYC), Anti-Money Laundering (AML), and sanctions compliance. Greenlite’s AI agents also manage alert triage, customer risk scoring, and transaction monitoring to free up compliance teams to focus on proactive risk management, regulatory strategy, and customer insight.

These solutions are built around its Trust Infrastructure, a system that embeds US federal banking regulatory guidance into every AI agent. The system enables automated workflows to meet strict requirements for validation, testing, and accuracy, which allows firms to scale their AI-based staff members.

“With regulatory pressure mounting and margins tightening, compliance teams can’t keep throwing headcount at the problem,” said Greenlite AI CEO and Co-Founder Will Lawrence. “They need automation that’s not just powerful, but accountable. That’s exactly what Greenlite AI delivers—AI agents built on a foundation of regulatory trust, ready to take on the front lines of financial crime and compliance.”

Greenlite will use the new funding to scale its Trust Infrastructure, which it anticipates will become the industry standard for generative AI accuracy and model validation. The funds will also be used to invest in new agent archetypes, expand the company’s regulatory presence, and grow its teams to onboard more clients.

With Greylock’s backing, Greenlite will be among a portfolio of fresh AI and infrastructure startups. The investment underscores current investor confidence in agentic AI’s role in enterprise compliance. “Greenlite AI’s agents are reducing the manual burden on compliance teams, and their unparalleled accuracy is helping organizations scale without adding headcount,” said Greylock Partner and Greenlite AI Board Member Seth Rosenberg. “It is a privilege to be partners to Will and team, and we’re proud to double down on our support of the company as they raise the bar for what trustworthy compliance looks like in today’s AI era.”

As financial institutions face rising regulatory scrutiny, evolving typologies of financial crime, and a shortage of qualified compliance staff, many are overwhelmed by the volume of alerts and manual review requirements. Greenlite AI aims to address this operational strain by embedding intelligence directly into compliance workflows. The company reports that its clients see a 3x to 4x return on investment within just 12 weeks, driven by reduced manual workload and faster case resolution. Among Greenlite’s customers are Ramp, Mercury, Betterment, Gusto, RSM UK, and multiple US banks.

Photo by Davis Sánchez

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Klarna’s Growth and Losses Send Mixed Signals

Klarna’s Growth and Losses Send Mixed Signals
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Klarna
  • Klarna hit a major milestone with 100 million active users and 724,000 merchants in the first quarter of this year.
  • Despite the fresh momentum, Klarna reported a $99 million pretax loss, which is more than double that of the previous year.
  • Amid its customer wins and financial losses, Klarna continues to postpone its IPO.

Buy now pay later (BNPL) and global commerce platform Klarna has both good and bad to report this week. The Sweden-based company recently unveiled its Q1 2025 results, which revealed customer growth and revenue loss.

The good

Klarna announced that it reached 100 million active consumers in April 2025. The company reports that this is the fastest growth rate it has seen in two years, thanks in part to the integration of users from Stocard, a payments company Klarna acquired in 2021. In addition to customer growth, the company also experienced merchant growth, which was boosted by 27%, as Klarna reached 724,000 merchants and welcomed 150,000 new retail partners in the first quarter, which was more than double the previous period.

“The momentum is undeniable—and this is just Q1,” said Klarna CoFounder and CEO Sebastian Siemiatkowski. “Klarna has reached 100 million consumers and secured exclusive partnerships with major retailers like Walmart through OnePay, teamed up with DoorDash, and expanded our partnership with eBay to the US after multiple successful European launches. Our AI-first strategy is driving exceptional returns, we’re outpacing competitors, our merchant network is scaling rapidly, and our next-gen products are reshaping money management for millions.”

Klarna is known for its momentum in leveraging AI. In fact, 87% of its staff uses its Generative AI engine, Kiki in their daily work activities. Additionally, beginning in 2022, the company notoriously cut its workforce by 40% to replace human employees with AI efficiency.

The bad

On the negative side, Klarna also reported $99 million in pretax losses in the first quarter. This loss is up from $47 million a year ago. The company attributes the loss to one-off costs, including depreciation, share-based payments, and restructuring. However, the losses may also be a result of customers defaulting on their BNPL agreements. The company recorded $136 million in customer credit losses, reflecting a 17% increase year-on-year. Despite this, the credit loss rate as a percentage of Klarna’s total payment volumes sits relatively low at 0.54%, which is up from 0.51% a year ago.

Interestingly, Klarna appears to be walking back the workforce reduction it initiated a few years back. Seeing the need for human-in-the-loop when it comes to leveraging AI for customer service, the company plans to use an Uber-like approach to hiring customer service workers, allowing them to log on and off as spikes in demand for customer service rises and falls.

IPO or no?

Despite Klarna’s impressive customer and merchant growth in the first quarter of 2025, its financial challenges, combined with an uncertain economic environment, have cast a shadow over its IPO plans. Originally eyeing a public debut in 2025, Klarna has postponed its IPO amid continued losses, ongoing restructuring efforts, market uncertainty in the US, and increased regulatory scrutiny in the UK. As the company navigates rising credit losses and reevaluates its balance between AI-driven efficiency and human customer service, the delay signals a cautious approach to market timing.

Photo by Annamaria Kupo on Unsplash

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Finastra Sells Off Treasury and Capital Markets Division

Finastra Sells Off Treasury and Capital Markets Division
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Finastra, Mergers & Acquisitions
  • Finastra is selling its Treasury and Capital Markets (TCM) division to an affiliate of private equity firm Apax Partners.
  • TCM will become a standalone company under Apax ownership and will receive investment to accelerate product innovation, enhance cloud capabilities, and improve the customer experience.
  • The deal is expected to close in the first half of 2026.

UK-based financial services software provider Finastra announced that it is selling its Treasury and Capital Markets (TCM) business unit to an affiliate of private equity firm Apax Partners. Once the transaction closes in the first half of 2026, Apax will rebrand TCM and operate it as a standalone business.

The deal gives Finastra room to double down on its core banking software, while TCM gains the backing to modernize and grow under independent ownership.

Finastra’s TCM facilitates risk management, regulatory compliance, and capital markets operations with its suite of software products, which include Kondor, Summit, and Opics. The business unit has more than 340 financial institution clients.

Under the ownership of Apax, TCM will be able to invest further in new product development, marketing, and technology infrastructure. Additionally, Apax will help TCM sharpen its strategic and operational focus, enhance its customer experience, and accelerate its cloud technology offering.

“We’re excited to partner with the TCM team as the business begins a new chapter as an independent organization,” said Apax Partner Gabriele Cipparrone. “With the backing of the Apax Funds, we expect TCM to benefit from accelerated innovation and enhanced operations, delivering even greater value to its clients.”

In addition to TCM, Apax has invested in other companies in the application software industry. Some of the firm’s more notable investments include Paycor HCM, Zellis Group, ECi Software, OCS / Finwave, Azentio, EcoOnline, and IBS Software.

Finastra anticipates that selling TCM will streamline its product portfolio and free up cash to reinvest in the business.

“This sale marks an important milestone for Finastra that will help further launch our next phase of growth with a focused suite of mission-critical financial services software,” said Finastra CEO Chris Walters. “It will provide capital to accelerate our strategy and reinvest in our core business, while providing our award-winning TCM platform with the backing of an experienced, long-term technology investor to support its continued success moving forward.”

With customers in 135 countries, Finastra serves 8,100 financial institutions with its software applications across lending, payments, and retail banking. The company was founded in 2017 as a combination of Misys and D+H. Earlier this year, Finastra appointed Chris Walters as CEO.

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