🔍 Coinbase Trouble

Today's sponsor

Fintech’s eating the world—don’t get left behind in 2025! If you haven’t already, check out our FREE Spot The Next Big Fintech Guide

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

This week, the lines between AI, payments, and crypto regulation get even blurrier—and bolder.

Here’s what we’re diving into:

• Coinbase faces SEC heat over inflated user numbers. 🔍

• Visa launches a new fintech partner program and AR tools. 🚀

• Klarna's AI push drives $1M in revenue per employee. 💰

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

First time reading? Sign up here to join 10,000+ readers staying ahead in fintech every Sunday.

Let’s dive in!

🌎 3 Major Stories

Dive into this week’s top Fintech developments.

Coinbase Faces SEC Over User Count Claims 🔍

The Big Story 📰: Coinbase Global Inc., the largest cryptocurrency exchange in the U.S., faces scrutiny from the Securities and Exchange Commission (SEC) over potential inaccuracies in reporting user numbers. Specifically, the SEC is investigating Coinbase’s claim of having over 100 million "verified users," a figure critical to their 2021 IPO documentation. Coinbase acknowledged that this count included anyone who verified an email or phone number, meaning multiple entries for the same individual could inflate the numbers. While the company ceased reporting these figures in 2022, it has maintained contact with the SEC and is seeking to resolve the issue. Amidst the investigation, Coinbase also reported a cyberattack demanding a $20 million ransom, which CEO Brian Armstrong stated they would not pay.

Key Takeaway ⚡️: This investigation underscores the necessity for transparency and accuracy in user reporting, as potential misrepresentation could have significant ramifications for Coinbase, especially as it prepares to join the S&P 500—the first pure-play crypto company to do so. For fintech enthusiasts and investors, understanding the implications of this scrutiny is vital, as it could influence market confidence in Coinbase and broader regulatory responses in the fintech sector. Furthermore, the simultaneous cyberattack highlights ongoing security challenges in the rapidly evolving cryptocurrency space, emphasizing the need for robust security measures as companies navigate regulatory landscapes and operational risks.

Visa Launches Program to Boost Fintech Ties 🚀

The Big Story 📰: Visa Inc. is taking significant strides to bolster its partnerships with fintech companies by launching Visa Commercial Integrated Partners. This initiative aims to create a more seamless integration of Visa’s commercial offerings into fintech apps via advanced APIs. The new program will allow business application providers to embed Visa products directly, cutting development time and costs while improving customer payment experiences. Additionally, Visa has debuted the Visa AR Manager, an innovative product designed to automate virtual card transactions, easing the burden on suppliers and enhancing operational efficiency. With these moves, Visa solidifies its role as a key player in the fintech ecosystem.

Key Takeaway ⚡️: Visa’s latest initiatives signal a major shift in how fintech companies can leverage established payment networks. By enabling easier access to Visa’s commercial APIs and streamlining virtual transactions with the Visa AR Manager, Visa is not only fostering innovation but also enhancing the overall user experience. This emphasis on integration and automation can drastically reduce costs and development time for fintech firms, allowing them to focus on what they do best. For investors and industry stakeholders, this is an opportunity to watch as Visa strengthens its market presence, potentially reshaping how payment solutions are integrated in the future.

Klarna’s AI Boost: Revenue Hits $1M/Employee 💰

The Big Story 📰: Klarna is embracing a future powered by artificial intelligence (AI), with impressive results that saw its revenue per employee skyrocket to nearly $1 million. This leap is attributed to Klarna’s strategic decision to utilize internally developed AI systems, which has allowed the buy now, pay later giant to streamline operations, cut costs significantly, and reduce its reliance on human labor across various sectors. By replacing numerous customer service staff with AI-driven solutions, Klarna has managed to improve efficiency and financial performance, showcasing clear benefits of AI integration. However, the company has also stated that human customer service options will still be available to enhance user support as they navigate the rapidly evolving fintech landscape.

Key Takeaway ⚡️: Klarna's AI-driven efficiency revolution illustrates just how significantly artificial intelligence can boost performance in fintech. Achieving nearly $1 million in revenue per employee signals a major shift towards tech-driven operations in the industry, prompting competitors to consider similar strategies. This development is not just a win for Klarna; it also serves as a reminder for fintech firms to explore AI innovations for cost management and improved customer experience. Potential investors and companies should pay close attention to Klarna's upcoming IPO plans, particularly as the company navigates market volatility while aiming to capitalize on its tech-centric approach.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• JPMorgan Turns Bitcoin Friendly! 👀: In a surprising twist, JPMorgan Chase CEO Jamie Dimon announced that clients can now buy bitcoin, despite his previous skepticism about crypto. During the bank's annual investor day, Dimon confirmed that while JPMorgan won't offer custody services for the digital currency, it will include bitcoin transactions on client statements. This policy shift aligns with a changing regulatory landscape, allowing U.S. banks greater flexibility in crypto activities. Even as Dimon maintains his critical stance on crypto, he acknowledges consumers' rights to engage in the market.

• Curve Takes on Apple Pay in EEA 🚀: Curve Pay has officially launched its iOS digital wallet, marking itself as the first serious competitor to Apple Pay in the European Economic Area (EEA). This new mobile payment solution, also available on Android, allows users to make contactless transactions with handy features like retroactively changing cards, splitting payments, and even cashback options. Following a European Commission ruling that opened up access to the iPhone’s NFC technology, Curve aims to dismantle Apple’s dominance and provide consumers with choices previously unavailable. With over a million users, Curve is making waves in the digital payments sector!

• US Banks Eye Stablecoin Launch 🏦💸: Major players in the banking sector, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are exploring the creation of a stablecoin to enhance transaction speeds and fend off competition from rival cryptocurrency firms. According to The Wall Street Journal, these discussions are still in the early stages and may involve partnerships with existing payment platforms like The Clearing House and Zelle. Interestingly, there's potential for banks outside this initial group to join the stablecoin project as discussions progress. This initiative comes amid ongoing regulatory considerations, particularly the Senate's push for the GENIUS Act, which aims to establish clear guidelines for stablecoins.

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

• Airwallex Hits $6.2B Valuation with $300M Raise! 🚀: Airwallex, the global payments champion, has just completed a hefty $300 million Series F funding, pushing its valuation to $6.2 billion. With this fresh capital, which comes from a mix of secondary share transfers and prominent investors like Square Peg and Visa Ventures, Airwallex aims to expand its footprint across new markets such as Japan and Latin America. This move follows an impressive growth streak, growing its customer base by 50% and reaching an annualized revenue of $720 million. Airwallex is on a mission to redefine global banking, creating a seamless financial infrastructure for businesses everywhere.

• Monarch's $75M Boost Amid Fintech Freeze ❄️: Personal finance app Monarch has successfully raised $75 million in a Series B round, despite the tough climate for fintech startups. The funding, led by Forerunner Ventures and FPV Ventures, values the company at $850 million. Monarch is riding the wave of users searching for alternatives after Mint's closure last year, with subscriber numbers skyrocketing 20 times. Unlike Mint, Monarch focuses on paid subscriptions, avoiding advertising pitfalls. Co-founder Val Agostino believes it’s about time personal finance got a makeover, and with increasing engagement, Monarch seems well on its way.

• Affiniti’s $17M Series A: Gen Z Fintech Founders Shine! 🌟: Meet Aaron Bai and Sahil Phadnis, the youthful duo behind Affiniti, who just secured $17 million in a Series A round led by SignalFire. Their innovative expense management software and customizable credit cards aim to support small businesses like pharmacies and auto dealerships, offering a “v3” fintech approach. Unlike traditional banking options, Affiniti leverages data analytics to provide actionable insights. With an impressive growth trajectory, they’re poised to reach $1 billion in transactions by year-end, proving that age is just a number in the fintech world!

Thanks for reading and have a relaxing Sunday,

Derek,
Editor, Money Explored.