💸 Chime’s IPO

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

This week, IPO buzz is back, AI is reshaping payments, and your next online shopping trip might involve a chatbot doing the checkout.

Here’s what we’re diving into:

• Chime files for IPO with over $1.6B in revenue. 🚀

• Visa leans into AI to fight fraud and personalize payments. 💳

• PayPal teams up with Perplexity to launch AI-driven shopping. 🛍️

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.

Chime's IPO Filing: A Game On the Horizon 💸

The Big Story 📰: Digital consumer bank Chime has officially filed for its IPO by submitting its S-1 paperwork, following a confidential filing in December. While the details regarding the number of shares and target pricing remain undisclosed, industry analysts believe Chime could be looking to raise up to $1 billion. Chime's impressive financials show a revenue of $1.67 billion for 2024, indicating significant growth from the previous year. Additionally, the company has secured a notable sponsorship deal with the Dallas Mavericks, costing around $33 million over three years. This move adds to the intrigue around Chime's potential IPO success.

Key Takeaway ⚡️: Chime’s IPO filing marks a critical milestone for the fintech sector, reflecting the ongoing evolution and maturity of digital banking. With over 8.6 million active users and significant revenue growth, Chime showcases the appetite for neobanks amid rising competition. For investors, this development opens up potential opportunities, particularly as Chime's financial trajectory suggests it is nearing profitability. Additionally, the sponsorship arrangement with the Mavericks illustrates a savvy marketing strategy that could enhance brand visibility. This IPO will likely influence investor sentiment across the fintech landscape, setting a precedent for future digital banks considering public offerings.

Visa's AI Revolutionizes Payments & Security 💳

The Big Story 📰: Visa is embracing artificial intelligence to enhance its payment processing capabilities, focusing on fraud prevention, personalization, and agentic commerce. Sarah Laszlo, a senior director within Visa's machine learning platform, discussed how AI is revolutionizing payment experiences during a recent AI Podcast episode. With hundreds of billions of transactions processed annually, even slight technological improvements can lead to significant savings. Visa currently prevents approximately $40 billion in fraud each year, demonstrating the critical importance of continued innovation. Additionally, AI helps provide tailored offers to cardholders while tackling privacy concerns through abstract user data representations.

Key Takeaway ⚡️: Visa’s integration of AI represents a pivotal trend in the fintech landscape, emphasizing the need for enhanced security and personalized user experiences. By leveraging AI to create agentic commerce where AI agents manage payments directly, Visa is setting a new standard for convenience and efficiency. This strategic shift will likely spur other companies to explore similar approaches, prioritizing innovation in the personalization and security of payment solutions. For fintech enthusiasts and professionals, keeping an eye on these advancements is crucial, as they will significantly influence customer expectations and competitive dynamics in the industry moving forward.

Perplexity & PayPal: AI Shopping Revolution Ahead! 🛍️

The Big Story 📰: Perplexity has partnered with PayPal to transform the online shopping experience for users this summer in the U.S. By utilizing its AI chatbot and search engine capabilities, Perplexity will enable users to browse and make purchases directly through its Pro platform, with PayPal and Venmo as the accepted payment methods. This collaboration emphasizes "agentic commerce," positioning AI as an integral part of online shopping and transactions. While the convenience is appealing, it also raises security concerns regarding personal data and identity theft, prompting PayPal to reassure users of its fraud detection and security protocols.

Key Takeaway ⚡️: This partnership signals a significant development in the intersection of AI and e-commerce, making shopping more efficient but prompting discussions about data security. For fintech enthusiasts and industry professionals, the integration of AI in commerce could redefine user experiences while urging them to prioritize cybersecurity. PayPal's collaboration with Perplexity may set a precedent for similar innovations in the market, and users are encouraged to be vigilant about their online safety as they embrace these new shopping paradigms. As the line between technology and shopping continues to blur, staying informed and proactive about security will be crucial.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• Airtel Money Sets Sights on IPO 📈: Airtel Africa has announced plans to launch an IPO for its mobile money unit, Airtel Money, in the first half of 2026. This strategic move aims to harness the growing demand for digital payments in Africa and provide millions of unbanked individuals with better access to financial services. With revenues up 20.7% in 2024 and $112 billion processed last year, Airtel Money is gearing up to compete with major rivals like M-Pesa and MoMo. The IPO could bolster its independence and visibility, fueling expansion in key markets like Nigeria and Uganda.

• Monzo Unveils 'Undo Payments' Feature ⏳: Monzo has rolled out a game-changing 'undo payments' feature that lets customers reverse incorrect payments within a 10 to 60-second window. With research revealing that nearly one-third of people faced payment mishaps last year, this option could save Britons from contributing to the staggering £825 million lost annually due to errors. Users can set their own timers, making the feature both customizable and user-friendly. Monzo’s head of payments, Andy Sacre, emphasizes that this innovation combines the speed of fintech with essential customer protections, making financial transactions less stressful.

• Ramp Faces Federal Scrutiny Over $25M Contract 🚨: Rep. Gerald Connolly is investigating Ramp's potential favoritism in its bid for a $25 million government contract. Concerns are mounting due to Ramp's lack of federal contracting experience and connections to Trump allies, such as Peter Thiel. Connolly has demanded documentation from the General Services Administration regarding Ramp’s communications and meetings, questioning whether the startup received insider knowledge before the contract was public. As Ramp’s valuation soars to $13 billion, its pursuit of government business could raise eyebrows in the fintech sector.

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

• Addepar's New Funding Fuels Growth 🚀: Addepar, the go-to platform for investment pros, snagged $230 million in a Series G funding round, boosting its valuation to a whopping $3.25 billion. Co-led by Vitruvian Partners and WestCap, the round included seasoned investors like 8VC and Valor Equity Partners, alongside newcomer EDBI. With assets under management now exceeding $7 trillion, up from $5 trillion last year, Addepar is flourishing, adding an average of $25 billion in new assets weekly. The new funds will enhance product development and provide liquidity to early investors, reinforcing Addepar’s mission to empower investment professionals globally.

• Zopa's $106M Boost for Growth 🚀: UK neobank Zopa has secured £80 million ($106.4 million) in Additional Tier 1 (AT1) capital from a mix of existing and new investors, doubling its pre-tax profits to £34.2 million ($45.4 million) for the fiscal year ending December 2024. The oversubscribed bond issuance on the London Stock Exchange will enhance Zopa's balance sheet, paving the way for its upcoming flagship bank account aimed at delivering competitive value and convenience. Partnerships with Octopus Energy and John Lewis further expand Zopa’s reach, integrating loans into their platforms to cater to a wider audience.

• Bestow’s $120M Boost for Future Growth 🚀: Insurtech Bestow, co-founded by Melbourne O’Banion, has successfully raised $120 million in a Series D round led by Goldman Sachs and Smith Point Capital. Originally targeting direct-to-consumer insurance, Bestow pivoted to software solutions for life insurers after selling its consumer business to Sammons Financial Group. The new funding will enhance its product offerings and underwriting capabilities. With a revenue model focused on enterprise SaaS, Bestow reported impressive annual recurring revenue growth and secured a $50 million credit facility, further solidifying its position in the fintech landscape.

Thanks for reading and have a relaxing Sunday,

Derek,
Editor, Money Explored.