🚫 Fintech vs Trump

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Hey Fintech Explorers—Welcome back to Money Explored, your essential Sunday newsletter for all things fintech!

This week, the clash between regulators, politicians, and fintech giants gets even more intense—from lobbying the White House to lawsuits over fraud and billion-dollar buyouts.

Here’s what we’re diving into:

• Fintech CEOs press Trump to block new bank data fees. 🚫

• New York’s attorney general takes on Zelle fraud. ⚖️

• A $2B buyout takes MeridianLink private. 💰

Plus: A regulator’s mass-firing greenlight, a long-awaited payments comeback, and a stealth IPO filing abroad.

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.

Fintech Titans Urge Trump to Block Data Fees 🚫

The Big Story 📰: Top fintech and crypto leaders have taken a strong stance against potential fees charged by US banks for access to customer data, urging the Trump administration to intervene. In a letter addressed to President Trump, major players like Klarna, Robinhood, and Gemini highlight that these fees threaten their business models and could stifle innovation in the industry. They assert that such levies would not only harm their companies but could lead to closure for small businesses and disrupt financial tools that consumers rely on. This expression of concern underscores a critical moment in the ongoing battle for data access and control within the financial sector.

Key Takeaway ⚡️: The call to action from fintech and crypto executives marks a significant moment in the fight against banking fees that could upend competition and inhibit innovation. By voicing their concerns, these industry leaders are rallying for a fairer financial landscape that prioritizes open data accessibility. For investors and stakeholders, this situation emphasizes the need for vigilance regarding regulatory developments that influence market dynamics. The outcome of this lobbying effort may reshape the future of fintech collaboration with traditional banks, ultimately impacting how consumer data is leveraged across the industry.

New York Takes Aim at Zelle's Fraud Crisis ⚖️

The Big Story 📰: New York Attorney General Letitia James has reignited the battle against fraud on the Zelle payments platform by suing Early Warning Services LLC (EWS), the company behind the Zelle network. This lawsuit comes after the Trump administration’s Consumer Financial Protection Bureau (CFPB) backed off from addressing concerns regarding rampant fraud linked to Zelle's peer-to-peer payment system. The suit accuses EWS of hastily launching the platform without adequate safety measures, effectively transforming Zelle into an easy target for fraudulent activities. This legal action could have significant implications for regulatory oversight and accountability in digital payments.

Key Takeaway ⚡️: This lawsuit marks a pivotal moment in the ongoing struggle to enhance security and consumer protection in the rapidly evolving fintech landscape. By holding EWS accountable, New York is sending a strong message about the importance of robust fraud prevention measures in digital payment systems. For fintech companies and consumers alike, the outcome of this case may lead to stricter regulations and heightened scrutiny for peer-to-peer platforms. As fraud becomes an increasingly costly issue, stakeholders should prepare for potential shifts in compliance standards and operational practices aimed at safeguarding users in the digital finance space.

MeridianLink Goes Private in $2B Buyout Deal 💰

The Big Story 📰: MeridianLink, a U.S. financial software provider known for enhancing digital lending and account opening for financial institutions, is set to go private in a $2 billion acquisition deal with Centerbridge Partners. This move comes roughly four years after MeridianLink's initial public offering. Each shareholder will receive $20 per share, representing a 26% premium over its last closing price. The acquisition underscores the robustness of private-equity activity, especially in the software segment, as firms seek strategic control over technology companies driving digital transformations in financial services.

Key Takeaway ⚡️: The acquisition of MeridianLink signifies a notable trend in fintech where private equity firms are eager to consolidate and capitalize on technology to enhance financial services. With its strong EBITDA margins and established relationships with nearly 2,000 community financial institutions, MeridianLink presents a valuable asset in the evolving digital lending landscape. For investors and fintech professionals, this deal reflects a shift towards increased industry consolidation, emphasizing the importance of scalability and technological advancement in a competitive market. As digital transformation accelerates, players in the fintech space should monitor such developments closely, as they may pave the way for emerging opportunities and strategic partnerships.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• Court Clears Trump for CFPB Firings ⚖️: A federal appeals court has given President Trump the green light to resume mass firings at the Consumer Financial Protection Bureau (CFPB), ruling that the lower court overstepped its authority in blocking the dismissals. However, the decision will not take effect immediately, allowing CFPB workers and consumer advocates the chance to seek a rehearing. Critics warn this could leave consumers unprotected from predatory practices, citing concerns about the diminishing role of the CFPB, which was established post-2008 financial crash to safeguard consumer finance.

• Paytm Scores Big: Regulatory Win! 🎉: Indian fintech Paytm has clinched a crucial nod from the Reserve Bank of India to operate as a payment services provider for online merchants. This approval comes right after Ant Group liquidated its entire stake, making it a significant moment for Paytm. The lift of onboarding restrictions means the fintech can now accept a range of payment methods, including UPI. After facing scrutiny and setbacks for two years, Paytm is poised to regain market confidence, evidenced by a recent surge in shares. The future looks promising for this resilient fintech giant!

• PayPay Seeks U.S. Listing for Growth 🚀: In a bid to bolster its operations and fund SoftBank's AI ambitions, Japanese mobile payment app PayPay has confidentially filed for a public listing in the United States. Founded in 2018, PayPay has quickly become the go-to mobile payment solution in Japan, boasting over 70 million users and offering various financial services, including credit cards. This strategic move aims to tap into the lucrative U.S. market and further enhance its capabilities, cementing PayPay's position as a major player in the global fintech landscape.

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

• Wall Street Banks Strike Gold: IntraFi’s $2B Win! 💵: Financial technology firm IntraFi has successfully raised over $2 billion through the leveraged loan market, giving Wall Street banks a significant edge over private credit firms. Spearheaded by Morgan Stanley, this debt sale was supported by prominent investors such as Blackstone Inc. and Warburg Pincus. The funds will enable IntraFi to pay dividends to its private equity owners while simultaneously refinancing its riskier debts. This deal marks a noteworthy triumph for traditional banks in a competitive financing landscape increasingly dominated by private lenders.

• 1Kosmos Raises $57M for ID Proofing! 🔐: 1Kosmos, the cybersecurity star known for identity verification and passwordless authentication, has bagged $57 million in Series B funding led by Forgepoint Capital and Oquirrh Ventures. This latest raise, which includes a $10 million credit line from Bridge Bank, builds on their earlier $15 million Series A. With about $72 million raised to date, 1Kosmos plans to enhance product development and accelerate global expansion, targeting North America, EMEA, and APAC markets. Their innovative platform leverages encrypted blockchain technology to bolster security against impersonation attacks.

• Bumper Hits the Road with $11M 🚗💰: Bumper, the BNPL solution for unexpected car repairs, has secured $11 million in a Series B extension funding round, led by Autotech Ventures. The Sheffield and London-based startup, supported by big names like Jaguar Land Rover and Porsche, aims to help drivers manage repair costs—often hitting £500 or more—by offering interest-free payment options through their garages. With funding in hand, Bumper plans to expand its services across Europe, strengthening ties with 5,000 dealerships. Co-founder James Jackson emphasizes empowering families to navigate surprise costs that can disrupt their budgets.

Thanks for reading and have a relaxing Sunday,

Derek,
Editor, Money Explored.