🛍️ AI Shopping Protocol

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Hey Fintech Explorers—Welcome back to Money Explored, your essential Sunday newsletter to stay ahead in fintech!

This week, the future of payments is being rewritten—from AI agents shopping on your behalf, to BNPL hitting new adoption milestones, to another showdown over consumer data fees.

Here’s what we’re diving into:

• Google launches a payments protocol for AI shopping agents 🛍️

• Cash App’s BNPL hits 1M users 🚀

• JPMorgan and Plaid’s new fee deal sparks backlash 💰

Plus: Europe strikes a digital euro deal, an Indian gold-savings app turns profitable, and a billion-dollar IPO gears up in Asia.

It’s all happening—and that’s just the start…

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Let’s dive in!

🌎 3 Major Stories

Dive into this week’s top Fintech developments.

Google Unveils Game-Changer for AI Shopping 🛍️

The Big Story 📰: Google has launched a groundbreaking open protocol called the Agent Payments Protocol (AP2) designed for AI agents that handle purchases on behalf of users. Supported by over 60 merchants and financial institutions, this protocol aims to streamline interactions between AI platforms, payment systems, and vendors while ensuring a traceable transaction history. Google executives emphasize a commitment to evolving the protocol collaboratively, making its specifications available on GitHub. The AP2 will allow for complex real-time shopping experiences, enabling AI agents to negotiate prices and execute purchases, all while maintaining an auditable trail to prevent fraud.

Key Takeaway ⚡️: The introduction of AP2 is poised to revolutionize the way consumers engage in online purchasing, making it a pivotal moment in the fintech landscape. By marrying AI with payment systems, Google is paving the way for more efficient and seamless shopping experiences. The potential for wide adoption, especially with backing from major financial players like Mastercard and PayPal, means that the future of online transactions could become significantly more automated and secure. Fintech startups and developers should pay close attention to this development, as building on or integrating AP2 could enhance their service offerings and position them competitively in a rapidly evolving marketplace.

Cash App's BNPL Hits 1M Users! 🚀

The Big Story 📰: Block has successfully drawn in one million consumers to its new post-purchase buy now, pay later (BNPL) feature on the Cash App debit card since its launch in February. As part of a broader approach to diversify its offerings, Cash App allows eligible users to retroactively apply BNPL financing to their previous purchases while planning to expand this feature to more users through 2025. Block's CFO, Amrita Ahuja, shared insights at an investor conference on the increasing integration of Afterpay into Cash App and the aim to transform it into a comprehensive banking platform that combines debit and credit functionality without the risks of traditional credit debt.

Key Takeaway ⚡️: Block’s innovative BNPL feature not only caters to the growing cohort of younger consumers confused and frustrated by traditional credit solutions but also signifies a shift in how fintech firms approach lending. By blending Afterpay's offerings with Cash App, Block is creating a more transparent lending environment where fees are upfront and manageable. This strategy will likely enable the company to capture a larger market share, particularly among users seeking alternatives to costly credit card debt. The consumer response indicates a significant trend towards integrated financial tools, suggesting that companies that innovate in user-friendly lending options are poised for substantial growth.

JPMorgan and Plaid's New Fee Drama Unfolds 💰

The Big Story 📰: JPMorgan Chase has announced a new agreement with Plaid, a leading financial data aggregator, which will impose fees for accessing consumer financial information previously offered for free. This partnership is presented as a way to advance U.S. open banking, a sector currently facing regulatory turbulence since new rules took effect last October. However, three fintech trade groups have criticized this move, claiming that it exploits the murky regulatory landscape for profit and stifles competition. The implications of this deal could significantly affect consumer access to their financial data and the landscape of fintech services as a whole.

Key Takeaway ⚡️: This agreement between JPMorgan Chase and Plaid signifies a pivotal moment in the struggle for consumer financial data access. The imposition of fees raises concerns about consumer choice and competition among fintech firms, as consumer-permissioned data fees have been deemed illegal under current laws. If the Consumer Financial Protection Bureau acts swiftly, it could uphold consumer rights and redefine the fintech landscape. The reaction from industry groups underscores the need for clearer regulations that protect innovators and maintain fair market conditions, particularly in these times of regulatory uncertainty.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• EU Ministers Make Digital Euro Deal 💶: EU finance ministers have reached a significant compromise on the roadmap for launching a digital euro, aiming to challenge the dominance of U.S.-based payment giants like Visa and Mastercard. This digital currency, underpinned by the European Central Bank (ECB), is designed to enhance Europe’s financial autonomy. As discussions surrounding its launch have intensified, the ministers have secured a say in both the issuance of the digital euro and the holding limits for residents, crucial for addressing concerns over bank runs. The ECB faces delays in legislative approval, but hopes to have the digital euro operational within three years.

• Jar Strikes Gold with Profits! 🪙: Indian fintech Jar is making waves by enabling millions to save in gold, and it’s now turned a profit. Catering to low- and middle-income users, it has attracted over 35 million registered users, with around 60% from tier-2 and tier-3 towns. The startup's operating revenue skyrocketed ninefold to ₹2.08 billion ($23.6 million) in the last fiscal year. By vertically integrating operations and expanding payment options through UPI, Jar is not just mining profits but is also aiming for an IPO next year. It's a gold rush for first-time savers!

• Pine Labs Gears Up for $1B IPO! 🚀: India’s Pine Labs has received the green light from the markets regulator for its much-anticipated IPO, potentially hitting the $1 billion mark. Rivals like Paytm and PhonePe better watch out as Pine Labs—aiming for a whopping $6 billion valuation—plans to use the funds to boost international growth, enhance tech offerings, and reduce debt. Known for its full-stack payment solutions, the company is set to make waves in the fintech landscape, with investor interest soaring. Stay tuned for what’s next!

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

• Tamara’s $2.4B Financing Surge 🚀: Saudi fintech startup Tamara has just scored a monumental financing deal worth up to $2.4 billion, backed by financial heavyweights like Goldman Sachs, Citi, and Apollo. This funding will not only refinance its previous $500 million facility but also expand Tamara’s lending capabilities significantly. With an initial $1.4 billion on the table and an additional billion awaiting approval, the Shariah-compliant package aims to propel Tamara beyond its current 20 million customer mark. As a leading provider of buy-now-pay-later solutions in the Gulf, Tamara is ready to level up its game in the booming fintech landscape.

• Seon Secures $80M to Tackle Fraud 💥: Fraud prevention platform Seon has successfully raised $80 million in a Series C funding round led by Sixth Street Growth, bringing its total funding to $187 million. The company uses AI and extensive data analysis to identify digital footprints, thwarting false accounts and fraudulent transactions for partners like Revolut and Nubank. This fresh capital will fuel Seon's expansion efforts in North America and support AI-driven product innovations. Tamas Kadar, CEO of Seon, emphasized the urgency of their mission, stating it's critical to combat the billions lost to fraud annually in today's fast-paced digital landscape.

• Numeral Nets $35M to Simplify Sales Tax! 💸: Sam Ross, co-founder of Numeral, launched his sales tax automation startup after facing the challenges of compliance while running e-commerce businesses. Recently, Numeral secured $35 million in Series B funding, boosting its valuation to $350 million. Ross’s vision is to help clients navigate the complexities of sales tax laws—over 11,000 jurisdictions—with AI-powered solutions. With a 3.5x revenue growth and over 2,000 clients, including EightSleep, Numeral aims to streamline compliance for businesses globally, even filing taxes in locations like Tanzania and Kenya. The future of sales tax management seems bright!

Thanks for reading and have a relaxing Sunday,

Derek,
Editor, Money Explored.