💵✨ PayPal banks up

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

As the year draws to a close, the fintech world is doing what it does best: making big moves right up to the holidays 🎄.

This week, regulators are reshaping the crypto landscape, platforms are stepping closer to full-service banking, and digital challengers are locking in their next phase of global growth before the curtain falls on 2025.

Here’s what we’re diving into:

• PayPal takes a decisive step toward becoming a bank for small businesses. 💵✨

• U.S. regulators approve a new wave of crypto-native trust banks. 🚀

• Monzo goes European with an Irish licence and its first acquisition. 🇮🇪

Plus: payments infrastructure deals in MENA, a major UK enforcement action, and fresh momentum in stablecoins and digital assets.

You’ll also want to keep reading for this week’s sponsor, Superhuman AI, and how 1M+ professionals are mastering AI without the overwhelm.

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.

PayPal Aims to Bank on Small Biz Loans 💵✨

The Big Story 📰: PayPal is making headlines with its application to form PayPal Bank, a move that aims to enhance its offerings by providing small business loans and interest-bearing savings accounts. CEO Alex Chriss emphasized that this bank would bolster their efficiency and support for small business growth in the U.S. The proposal is currently under review by the U.S. Federal Deposit Insurance Corporation and Utah's Department of Financial Institutions. As PayPal seeks to expand its banking-like services, it positions itself against traditional banks and competing fintech firms. PayPal's stock saw a modest increase following the announcement, reflecting investor optimism, despite a challenging year for the company.

Key Takeaway ⚡️: The establishment of PayPal Bank signals a significant shift in the fintech landscape, blurring the lines between traditional banking and online payment platforms. This could spark a new wave of competition as fintechs like PayPal look to provide comprehensive financial services that small businesses desperately need. By offering loans and savings accounts, PayPal aims to capitalize on its existing customer base while driving growth for the broader economic ecosystem. For fintech enthusiasts and investors, this move could indicate more profound changes in how financial services are delivered, pushing traditional banks to adapt or risk losing market share.

OCC Approves 5 National Trust Banks for Crypto 🚀

The Big Story 📰: The US Office of the Comptroller of the Currency (OCC) has given a green light to five national trust banks focused on digital assets and cryptocurrency, which could reshape the financial landscape. The new entrants—First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company—will join other national trust banks under OCC supervision. Three of these banks are transitioning from state trust companies, while the remaining two are setting up fresh charters. Ripple CEO Brad Garlinghouse lauded the approval, emphasizing the crypto industry's compliance and innovative capabilities in response to traditional banking criticisms. The OCC states that these developments are vital for consumer access and a diverse banking system.

Key Takeaway ⚡️: This significant move by the OCC signals a broader acceptance of cryptocurrency within the regulatory framework, showcasing the potential for innovation and increased competition in banking. For fintech enthusiasts and investors, the approval of these national trust banks presents new opportunities in digital finance. As established and emerging players alike navigate this evolving landscape, they'll need to strategize around compliance while harnessing the flexibility that comes with being part of the national banking system. The stage is now set for greater diversification of services and products that cater to modern consumer demands, ultimately benefiting everyone involved.

Monzo Goes Global: Gets Irish License and More! 🇮🇪

The Big Story 📰: Monzo is taking bold strides into the European market by securing a banking license from the European Central Bank and the Central Bank of Ireland. This marks a significant moment as Monzo becomes the first UK digital lender to obtain such a license. With its European headquarters set to open in Dublin, Monzo plans to launch and refine its offerings in Ireland. Additionally, the fintech announced its first acquisition of Habito, a digital mortgage broker, to enhance its services and provide customers with comprehensive financial management. Amidst these expansions, tensions have arisen among shareholders regarding leadership and governance as they push for the retention of outgoing CEO TS Anil.

Key Takeaway ⚡️: Monzo's expansion into Europe and entry into the mortgage market illustrate its determination to remain competitive and innovate within the fintech landscape. Securing a banking license in Ireland not only enables Monzo to broaden its customer base but also signals a strategic response to shifting investor sentiments and market opportunities. The acquisition of Habito positions Monzo closer to becoming a holistic financial platform, which could reshape how users manage their financial lives. As Monzo navigates these changes, the outcomes will be critical for other fintech firms looking to expand their reach and services effectively. Investors and industry players alike should keep a close eye on how Monzo's moves unfold amid shareholder tensions and evolving market dynamics.