Hey Toaster Readers,

This week is sponsored by our friends at Fintel Connect.

Experian is making it safer to shop for credit by expanding its “No Ding Decline” feature to personal loans. Also, mortgage costs are feeling the heat as FICO implements a huge 1,500% hike on tri-merge fees. We’re also breaking down Cash App’s move into P2P installment plans, the CFPB’s shift in antidiscrimination enforcement , and American Express replacing Visa as the official payments partner of the NFL.

Lots to break down. Let’s get toasting!

Carlos Caro, Founder at NMG, Co-Founder of The Free Toaster
Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

PS: To support us, please share our Newsletter or Podcast with 1 of your colleagues!

Experian Expands “No Ding Decline” Feature to Personal Loans

Experian has officially extended its No Ding Decline (NDD) feature to personal loans, allowing users to explore financing options in the Experian Marketplace without the risk of a hard credit inquiry upon rejection. This expansion follows a significant 16% increase in personal loan usage recorded by the company in 2025, a trend mirrored by the fact that 38% of U.S. consumers now hold at least one personal loan.

By using artificial intelligence, the tool pre-aligns applicant profiles with specific lender criteria before a formal application is ever submitted. This expansion builds on the success of the NDD program for credit cards, which has already seen significant adoption.

Speaking exclusively to the Free Toaster team, Experian confirmed the program’s explosive growth.

“With NDD, more than 40% of all cards and loans acquired through our Marketplace are now coming through the NDD program,” said Rakesh Patel, Executive Vice President of Experian Marketplace.

In addition to the loan update, Experian is further diversifying its reach by integrating its Insurance Marketplace into ChatGPT. According to Patel, these strategic moves reflect a broader commitment to “meeting consumers where they are” and reducing the friction of financial discovery. (Experian)

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FICO Hikes Tri-Merge Fees 1,500% as CHLA Reports $540 Average Credit Cost Per Loan

FICO increased its base tri-merge credit report fee from $1.80 in 2022 to $30 for 2026. This 1,500% price hike contributed to total mortgage credit costs rising to an average of $540 per loan. The Community Home Lenders of America (CHLA) reported these findings in a Tuesday update to its 2024 White Paper. Lenders currently lack alternatives because they must use approved scoring models to sell loans to Fannie Mae and Freddie Mac. The CHLA is requesting that regulators accelerate the approval of competing models such as VantageScore to reduce costs. Current rules often require lenders to pull multiple reports per borrower, which compounds price increases for first-time homebuyers. Rob Zimmer, CHLA’s Director of External Affairs, stated the organization wants to fix a monopoly that will "continue to extract more and more resources from homebuyers." (HousingWire)

Cash App Launches Pay-Over-Time Feature for Peer-to-Peer Transfers

Cash App now allows its 59 million monthly users to convert peer-to-peer transfers of $25 or more into installment plans. This feature enables users to recoup the cost of a past transfer into their balance in exchange for a flat upfront fee. Users repay the balance through weekly installments rather than revolving interest. The product applies to transactions made within the previous 30 days. This expansion follows the previous launch of pay-over-time features for debit card purchases. Eligibility for the installment feature depends on individual customer assessments and state-level regulations. (Cash App)

CFPB Finalizes Rule to Narrow Lending Antidiscrimination Requirements

The Consumer Financial Protection Bureau (CFPB) is finalizing a regulation to narrow antidiscrimination requirements for lenders by eliminating the disparate impact standard. The CFPB will now focus solely on explicitly discriminatory conduct rather than policies that result in unintentional discriminatory impacts on women and minorities. This move implements a year-old executive order from the Trump administration aimed at reducing compliance burdens and legal liabilities for banks. The Office of Management and Budget (OMB) is currently reviewing a final version of the rule that contains no material change from the proposal issued in November. Industry groups support the change for reducing regulatory burdens while consumer advocates claim the rule contradicts the 1974 Equal Credit Opportunity Act. The timing for the formal adoption of the rule remains unconfirmed. (Reuters)

Affiliate Marketing For Deposit Accounts - With Alana Levine, CRO at Fintel Connect

In the latest episode of The Free Toaster, Carlos joins Alana Levine (Fintel Connect) to dive into the high-stakes world of deposit affiliate marketing. Discover why deposit unit economics humble even the most seasoned lenders, how younger consumers became the stickiest depositors, and how to scale to billion-dollar quarters without triggering a regulatory inquiry.

Catch us on Apple Podcasts, Spotify, Substack, or your favorite player.

Please support our Newsletter by recommending us to one of your colleagues!

And, please check out our sponsors:

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• Need to hire top-tier talent in fintech or lending? Chat with CTB1

American Express Replaces Visa as Official NFL Payments Partner

American Express signed a multi-year deal to become the official payments partner of the NFL starting with the 2026 season. The financial services firm replaces Visa, which ended its thirty-year sponsorship this month. American Express cardholders gain early access to tickets for the 2026 game in Melbourne and benefits at the Super Bowl and NFL Draft. The company’s sports marketing portfolio now includes more than 50 global leagues and teams. American Express will also launch an NFL Extra Points credit card later this year issued by Comenity Capital Bank. This partnership follows existing team-specific deals with the Atlanta Falcons, New York Giants, New York Jets, and Miami Dolphins. Elizabeth Rutledge, Chief Marketing Officer, stated the partnership is a "natural extension" of the company's existing sports portfolio. (Reuters)

American Airlines and Citi Expand Partnership to Admirals Club Lounges

American Airlines and Citi are expanding their 40-year co-branded credit card partnership to include direct branding and integration across the Admirals Club lounge network. American Airlines operates a global air carrier service with 6,000 daily flights and utilizes the Citi-issued AAdvantage portfolio as its exclusive U.S. card program. Starting in April 2026, Citi branding will appear at lounge entrances in ORD, DFW, LAX, and MIA, with a full network rollout scheduled through 2026. The move links Citi card membership tiers directly to lounge access, specifically for Executive World Elite Mastercard, Globe Mastercard, and Strata Elite holders. American Airlines recently updated its lounge amenities through substantial vendor contracts with Lavazza and Champagne Bollinger. Access remains available via annual membership, oneWorld status, or $79 one-day passes. This expansion focuses on the integration of the card rewards program into physical airport infrastructure. (American Airlines)

Perplexity Appeals Court Ban on AI Shopping Agent Accessing Amazon

Perplexity asked a federal appeals court to overturn an injunction barring its Comet AI agent from accessing Amazon. The AI-powered search engine functions as a shopping assistant that automates product discovery and purchases for users. Amazon recently won a court order claiming the tool accessed password-protected accounts without authorization and ignored cease-and-desist warnings. Perplexity argues that Comet acts as a browser for the user and claims the retailer produced no evidence of actual harm like lost sales or decreased traffic. Amazon generated $68.6 billion in advertising revenue in 2025 and claims automated agents bypass the sponsored listings that drive this income. While Amazon has blocked competitors like OpenAI, its own assistant, Rufus, generated $12 billion in incremental sales last year. Walmart and Target are currently testing integrations with third-party AI tools rather than implementing bans. Recent data from PYMNTS Intelligence shows 70% of consumers are open to using AI agents for retail transactions. (PYMNTS) (Court Listener)

Royal Caribbean Group and Bank of America Launch First Tri-Branded Cruise Credit Cards

Royal Caribbean Group and Bank of America launched the Royal ONE and Royal ONE Plus credit cards to enable reward sharing across Royal Caribbean International, Celebrity Cruises, and Silversea. The company operates 69 ships and 3 private destinations, with plans to expand to 8 private locations by 2028 and enter river cruising in 2027. The Royal ONE card has no annual fee and offers 3X points on cruise purchases and 2X points on gas and groceries. The Royal ONE Plus card carries a $99 annual fee and increases cruise rewards to 4X points while adding 2X points on airfare and hotels. Cardholders receive travel perks including priority boarding and a $120 TSA PreCheck credit for the Plus tier. The program introduces a redemption system for onboard credits, shore excursions, and Wi-Fi packages. This tri-branded partnership replaces previous brand-specific loyalty silos with a unified rewards ecosystem. The launch follows the recent implementation of a status match program across the three cruise lines. (Bank of America)

Looking for a new role?

The Free Toaster Jobs Edition tracks where fintech teams are actually investing across marketing, product, data, credit, risk, and partnerships.

The Free Toaster Jobs

The Free Toaster Jobs curates real openings across credit, risk, product, data, and growth, with a focus on consumer fintech and lending. No noise. Just roles that signal where budgets and priorities are moving.

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Other News We’re Reading and Listening to

(CFPB Supervision) CFPB Supervision Reset: What Banks and Non-Banks Need to Know (Apple Podcast)

(AI) Visa and Mastercard Deploy Agentic AI for Disputes and Global Payments (American Banker)

(Banking) Small Businesses Can Soon Enjoy New Rewards With the Prime Business and Amazon Business Credit Cards (U.S. Bank)

(Cards) Small Businesses Can Soon Enjoy New Rewards With the Prime Business and Amazon Business Credit Cards (Mastercard)

(Lending) QuickFi Enables Air-Tow Trailers National Digital Captive Finance Program (PR Newswire)

(Fintech) UiPath Launches Agentic Solutions to Strengthen Financial Crime Compliance and Accelerate Lending (UiPath)

(Mortgage) U.S. Bank Enhances Consumer Mortgage Experience for New Homebuilding in Partnership With Built (U.S. Bank)

(Credit) TransUnion Introduces TruIQ Credit Strategy Studio to Transform How Lenders Build and Launch Prescreen Marketing Campaigns (TransUnion)

(Payments) Visa Unveils New Services to Modernize Dispute Resolution Process (Visa)

(Banking) Fintech Monzo Shutting Down US Operations to Focus on UK, Europe (Bloomberg)

(Lending) Octane Partners With Suzuki to Expand Financing to Prime Customers (PR Newswire)

(Retail) SurgePays Launches Stored Value and Loyalty Platform Across Retail Network (Issuer Direct)

(AI) Nearly 80% of Americans Use AI Tools but Most Still Want Humans Making Financial Decisions, TD Survey Finds (TD Bank)

(Social Media) TikTok and Meta Eye a Bigger Role in Financial Services (PYMNTS)

(Banking) America’s #1 Choice for Banking Expands Its Lead With the Launch of Chime Prime (Chime)

(Credit Unions) 72% of Gen Z Feels Financial Strain and Credit Unions See an Opening (PYMNTS)

(Credit) Average Delinquency Rates at Top Credit Card Issuers Were Stable in February (S&P Global)

(Credit) New Study Reveals Deepening Financial Divide Between Americans With High and Low Credit Scores (Business Wire)

Spot something worth sharing with your team? Drop this week’s edition in their inbox:

https://www.thefreetoaster.com/p/experian-expands-no-ding-decline

Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

SoFi adds $3.6 billion in new commitments to its loan platform business, reinforcing its shift toward a capital-light model. Meanwhile, Beast Industries’ acquisition of Step is under fire, with Senator Elizabeth Warren issuing a deadline to address concerns over youth safety and crypto expansion. We’re also looking at a new Fed study linking mobile sports betting to a spike in credit delinquencies, FICO’s latest report on falling U.S. credit scores, and Klarna doubling its credit facility to $2 billion to fuel American growth.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at NMG, Co-Founder of The Free Toaster
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

PS: To support us, please share our Newsletter or Podcast with 1 of your colleagues!

SoFi Secures $3.6 Billion in Loan Platform Partnerships

Not every borrower who comes to SoFi gets a SoFi loan. Some fall outside the credit box, meaning they don’t meet SoFi’s own underwriting criteria. That’s where the Loan Platform Business comes in. Instead of a dead end, those borrowers get routed to partners through referrals or the Lantern marketplace. SoFi still earns fee income and retains the servicing relationship. The marketing spend converts regardless of whether SoFi holds the loan.

That context matters for understanding why three new LPB agreements totaling over $3.6 billion in personal loan commitments is a bigger deal than the headline number suggests. A global bank takes $1 billion, a financial services and insurance group $600 million over 12 months, and a top-five global private asset manager up to $2 billion over two years. This follows a year where the LPB pulled in over $10 billion in total commitments.

SoFi spends heavily on brand, stadium naming rights, national TV, celebrity partnerships. That spend drives significant borrower demand. The LPB is what ensures none of that demand goes to waste. SoFi originates on behalf of third parties, collects fees, and retains servicing rights without carrying the credit risk. CEO Anthony Noto framed it plainly: “By connecting strong borrower demand with institutional capital, we’re building a capital-light, fee-based business that complements our overall lending business while leveraging our existing technology platform capabilities in underwriting, pricing, marketing and servicing.”

The LPB sits inside SoFi’s Financial Services segment and is a core driver of that segment’s growth, scaling from $303 million in Q1 2025 to $456 million by Q4. In FY2025, the Loan Platform Business accounted for more than 75% of Financial Services noninterest income, making it the segment’s dominant revenue driver by a wide margin.

Three institutional partners in a single announcement reflects growing demand from asset managers for exposure to consumer credit. SoFi’s adjusted net revenue hit $3.61 billion in FY2025, up 35% year over year, with fee-based revenue growing 53%. For fintech operators building in the lending space, the model is worth studying. Serve more customers, hold less risk, keep the relationship. That’s the playbook SoFi is running. (SoFi)

We’re going deeper into the entire SoFi Lending Business, including their LPB in an upcoming issue, breaking down how the model works, what it means for personal lending distribution, and what other fintechs can learn from it. Stay tuned.

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Senator Warren Questions Beast Industries Acquisition of Step Over Youth Safety and Crypto Expansion

Beast Industries faces a formal inquiry from the Senate Banking Committee following its acquisition of Step, a financial app serving 7 million users aged 13 to 18. Senator Elizabeth Warren issued a deadline of April 3 for the company to address concerns regarding insider trading allegations involving a Beast Industries employee and the platform's planned expansion into cryptocurrency exchange services. Step currently uses Evolve Bank and Trust to provide FDIC insurance and credit cards, though Evolve recently settled a class action lawsuit for $11.9 million over a data breach. The acquisition gives Beast Industries access to a user base where 39% of the channel's 471 million subscribers are minors. Beast Industries recently accepted a $200 million investment from Bitmine to integrate decentralized finance into the platform. Warren specifically questioned the lack of a general counsel and formal misconduct reporting at the media company. Beast Industries stated it is currently examining all marketing and compliance to meet regulatory requirements. (American Banker)

The Free Toaster previously covered this acquisition in a past issue and revisited it in a recent podcast episode, breaking down Step’s stalled growth, the economics behind teen neobanks, and the risk of pushing young users toward gambling-adjacent products under monetization pressure.

New York Fed Study Links Sports Betting Legalization to Rising Credit Delinquencies

Under-40 credit card delinquencies rose 7.9% in states following sports betting legalization, according to a report from the Federal Reserve Bank of New York. The New York Fed found that auto loan delinquencies in the same age group increased by 5.6%. While only 3.1% of the population actively bets on sports after legalization, the financial impact is significant enough to lower median credit scores by 1 point across entire counties. Data suggests that for the specific group of individuals who take up gambling, delinquencies jump by approximately 10 percentage points. Younger bettors under 40 see a 26 percentage point spike in late payments. These findings align with separate data from the University of California Consumer Credit Panel showing legalization increases bankruptcy likelihood by 10%. The authors wrote that sports betting can have dramatic implications for household financial stability as access expands through mobile apps and prediction markets like Kalshi and Polymarket. (Bloomberg) (Federal Reserve Bank of New York)

Upgrade’s Launch of Boost Money with John Doppke, VP of Product at Upgrade

In the latest episode of The Free Toaster, Carlos and Nick sit down with John Doppke (VP of Product at Upgrade) to unpack the launch of Boost Money. Discover the strategy behind this "four-in-one" financial account and how cash-flow underwriting is powering a new era of interest-free advances.

Catch us on Apple Podcasts, Spotify, Substack, or your favorite player.

Please support our Newsletter by recommending us to one of your colleagues!

And, please check out our sponsors:

• Need an affiliate marketing platform/network? Chat with Fintel Connect

• Need to improve application page conversions? Chat with Spinwheel

• Need help with performance marketing? Chat with Bulldog Media Group

• Need to grow in big marketplaces like Credit Karma? Chat with New Market Growth

• Need to hire top-tier talent in fintech or lending? Chat with CTB1

FICO Report: Average U.S. Credit Score Falls to 714 as Student Loan and Mortgage Delinquencies Rise

FICO reported the average U.S. credit score fell to 714 in its Spring ’26 Credit Insights report. This 2-point annual decline follows the resumption of student loan payments and a rise in mortgage delinquencies. FICO provides the analytics used by 90% of top U.S. lenders to assess consumer risk. A record 48.1% of consumers now hold scores of 750 or higher. Conversely, 24% of consumers reported skipping or making less than minimum payments over the last 12 months. Gen Z led all age groups in new credit activity with 25% opening at least one new card. Interest rates influenced 77% of consumers in their timing of credit applications. Survey data shows 67% of adults incorrectly believe personal income directly impacts their score. (FICO)

Splitit Expands Card-Linked Installments to Field Sales via Splitit Go

Splitit launched Splitit Go to capture a share of the $4.6 trillion annual U.S. services market where transactions occur face-to-face. This mobile solution allows contractors, medical providers, and automotive shops to offer installment plans via smartphone or tablet. Splitit functions as a card-linked installment platform that uses a customer's existing credit line rather than issuing new loans. Merchants generate payment plans through a QR code, text, or email during in-person consultations. The system requires no new credit applications or third-party underwriting for the consumer. It integrates into existing CRMs and field service platforms through a single API. This launch moves the company's embedded payment technology from e-commerce into physical environments like showrooms and service counters. (Splitit)

Klarna Doubles Elliott Investment Management Facility to $2B to Fuel $17B in US Loan Growth

Klarna doubled its credit facility with Elliott Investment Management to $2 billion to support up to $17 billion in US loan originations over the next three years. The digital bank sells newly originated receivables to Elliott funds on a rolling basis to maintain off-balance-sheet funding. This expansion follows a period where Klarna reported that US financing volume grew significantly in Q4 2025. Under the three-year agreement, Klarna retains all underwriting and servicing responsibilities for its 118 million active users. The company currently processes 3.4 million transactions daily across retailers like Uber, H&M, and Nike. This deal provides the capital required to meet American consumer demand for financing alternatives. (Klarna)

Looking for a new role?

The Free Toaster Jobs Edition tracks where fintech teams are actually investing across marketing, product, data, credit, risk, and partnerships.

The Free Toaster Jobs

The Free Toaster Jobs curates real openings across credit, risk, product, data, and growth, with a focus on consumer fintech and lending. No noise. Just roles that signal where budgets and priorities are moving.

By Toaster Media

Other News We’re Reading

(Lending) Allied Solutions and Loquat Partner to Deliver Omnichannel Digital Onboarding and Lending (Allied Solutions)

(Lending) Harborstone Credit Union Selects Upstart for Personal Lending (Upstart)

(Cards) American Express Unveils New Graphite™ Business Cash Unlimited Card, Rewarding Business Owners With Unlimited 2% Cash Back (American Express)

(Lending) Wolters Kluwer and FairPlay AI Announce Strategic Partnership to Deliver AI-Driven Fair Lending Optimization Capabilities (Wolters Kluwer)

(Payments) Mastercard Explores Sale of Payments Unit It Bought From Nets in 2019, FT Reports (Reuters)

(Lending) Luana Savings Bank Adopts nCino for Digital Lending (IBS Intelligence)

(Fintech) Plaid Expands Into Media With Acquisition of This Week in Fintech (Fintech News Switzerland)

(Payments) Cardlay Launches U.S. Embedded Spend Platform, Enabling Incumbents to Compete With Turnkey Commercial Spend Platforms (Business Wire)

(Payments) 200 Million More Friends on Venmo – Send Money to PayPal Users Around the World (PayPal)

(Banking) VIDEO: UBS Bank USA National Charter Approval (UBS)

(Lending) Square Expands Access to Capital, Financing More Sellers With Innovative, Tech-Powered Underwriting (Square)

(Marketing) SurgePays Launches Managed Marketing Services Platform Across Nationwide Retail Network (GlobeNewswire)

(Payments) A New Era of Platform Payouts: Branch Is Now Stripe’s Embedded Digital Wallet for Worker Payouts (Branch)

Spot something worth sharing with your team? Drop this week’s edition in their inbox:

https://www.thefreetoaster.com/p/sofi-adds-36b-in-commitments-to-loan

Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Bulldog Media Group.

Klarna reached 5 million active card users after adding 1.9 million in Q4 2025 alone. While the card now accounts for 15% of total transactions, LendingTree reports BNPL delinquencies hit 41% as grocery usage climbed to 25% of borrowers. Upgrade launched Boost Money with a 10% APY and interest-free cash advances to undercut the 24% average credit card APR. Meanwhile, Visa and Mastercard swipe fees reached a record $198.25 billion in 2025 as Upstart secured a $1 billion loan purchase agreement with Eltura Capital and Aperture Investors.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at NMG, Co-Founder of The Free Toaster
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

PS: To support us, please share our Newsletter or Podcast with 1 of your colleagues!

Klarna Card Pacing 270,000 New Cardholders Per Month

Klarna reached 5 million active Klarna Card customers globally, representing a substantial user base expansion from 800,000 in 2021. The global digital bank and payments provider offers a card that draws from a user’s own funds for everyday spending with the option to spread costs for specific purchases. Recent data shows a rapid acceleration in adoption with 1.9 million new users joining in Q4 2025 alone.

The Klarna membership program reinforces this growth by bundling travel insurance and airport lounge access without requiring debt or minimum spending thresholds. This model separates rewards from revolving credit balances. Chief Marketing Officer David Sandström stated, “They’re voting with their wallets and looking for the control and flexibility in a single card.”

The card is now active in 16 countries and serves as a primary entry point for the Klarna suite of banking services. In the US market, 25% of transaction volume now occurs at physical in-store locations rather than online. Data from the German market indicates high engagement, with cardholders averaging 100 more annual purchases than non-card users.(Klarna)

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Upgrade Launches Boost Money Offering 10% APY and Interest-Free Cash Advances

Upgrade launched Boost Money, a mobile banking product featuring a 10% APY on savings balances up to $1,000 for subscribers. The service provides interest-free cash advances up to $500 with a 0% APR and repayment terms up to 34 days.

Users can access a free tier including a credit-builder card or pay a $9.99 monthly subscription for the premium interest rate. Upgrade reports all payment activity to TransUnion, Experian, and Equifax. The Boost Money Spend account has no overdraft or maintenance fees and includes early paycheck access.

Premium membership includes identity theft protection and travel insurance. Since 2017, Upgrade has delivered $45 billion in credit to 7.5 million customers. The product launch targets the gap between current inflation rates and the 24% average APR typically charged for credit card cash advances. (Upgrade)

Merchants Payments Coalition Reports Record $198.25 Billion in Swipe Fees as Congress Weighs Reform

Merchants Payments Coalition reports that credit and debit card swipe fees reached a record $198.25 billion in 2025. This 5.9% annual increase represents an 80% jump since the pandemic for the group representing retailers and gas stations. Visa and Mastercard centrally set rates for over 80% of the market, with their credit card fees alone totaling $118.8 billion. The average swipe fee for these brands rose to 2.36% per transaction, up from 2.02% in 2010. Congress is currently weighing the Credit Card Competition Act to mandate that banks with over $100 billion in assets enable unaffiliated networks like Star or NYCE. This bipartisan legislation seeks to end the practice of restricting processing to the two dominant networks. Projections suggest the shift could save merchants and consumers over $17 billion annually. Current fees add an estimated $1,200 in yearly costs for the average family. (Merchants Payments Coalition)

Are Credit Card Balances At A Record High Or Flat Over The Last 10 Years?

In the latest episode of The Free Toaster, Carlos and Nick sit down with Kelvin Chen (Consumer Bankers Association) to discuss the “record high” narrative. Discover what average card balances look like when you control for new cardholders and inflation.

Catch us on Apple Podcasts, Spotify, Substack, or your favorite player.

Please support our Newsletter by recommending us to one of your colleagues!

And, please check out our sponsors:

• Need an affiliate marketing platform/network? Chat with Fintel Connect

• Need to improve application page conversions? Chat with Spinwheel

• Need help with performance marketing? Chat with Bulldog Media Group

• Need to grow in big marketplaces like Credit Karma? Chat with New Market Growth

• Need to hire top-tier talent in fintech or lending? Chat with CTB1

LendingTree Survey: BNPL Delinquencies Hit 41% as Grocery Usage Climbs

LendingTree reports that 41% of buy now, pay later users missed a payment in the past year, marking a significant increase from 34% in the previous period. The survey data reveals that 25% of borrowers now use these loans to purchase groceries, a sharp rise from 14% just one year ago. While one-third of users rely on these installments as a bridge to their next paycheck, 62% incorrectly believe that on-time payments will improve their credit scores. PayPal, Klarna, and Affirm remain the most utilized platforms in a market where 88% of users who requested a late fee waiver were successful. (LendingTree)

Upstart Secures $1B Loan Purchase Agreement with Eltura Capital and Aperture Investors

Upstart secured a $1 billion forward-flow agreement with Eltura Capital Management and Aperture Investors to purchase consumer loans over the next 12 months. The AI-powered lending marketplace connects consumers to more than 100 banks and credit unions to provide personal loans, automotive financing, and home equity lines of credit. The deal represents the first substantial arrangement of this scale between Upstart and this specific investor group. Upstart currently automates more than 90% of its loan originations without human intervention. Aperture Investors brings a portfolio of approximately $5.8 billion in assets under management to the partnership. This commitment aims to provide a robust and diverse funding ecosystem for the platform's credit products. The arrangement builds on an existing relationship to source and service consumer debt through Upstart’s cloud applications. (Upstart)

Looking for a new role?

The Free Toaster Jobs Edition tracks where fintech teams are actually investing across marketing, product, data, credit, risk, and partnerships.

The Free Toaster Jobs

The Free Toaster Jobs curates real openings across credit, risk, product, data, and growth, with a focus on consumer fintech and lending. No noise. Just roles that signal where budgets and priorities are moving.

By Toaster Media

Other News We’re Reading

(BNPL) 56% Of Gen Z Struggle To Track When Installment Payments Are Due (PYMNTS)

(Travel) Capital One Launches Capital One Travel App (Capital One)

(Lending) Algebrik AI Announces Strategic Bureau Integration With TransUnion To Power Smarter, More Inclusive Lending (PR Newswire)

(BNPL) Equipifi And CUSG Announce Strategic Partnership To Bring BNPL Capabilities To Credit Unions Nationwide (PR Newswire)

(Cards) Academy Sports + Outdoors And Bread Financial® Launch New myAcademy® Rewards Credit Card And Enhanced Loyalty Program (Bread Financial)

(Banking) Austin Telco Federal Credit Union Partners With MANTL To Modernize Retail Account Opening Across All Banking Channels (PR Newswire)

(AI) Meet Mastercard’s New Generative AI Model (Mastercard)

(Payments) Globant And Adyen Establish Global Partnership To Accelerate Merchant Payment Integrations And Time To Revenue (Globant)

(Payments) EWS Pairs With Citi To Offer Paze (Payments Dive)

(Banking) MoCaFi Files For Bankruptcy (Banking Dive)

(Payments) Introducing The Machine Payments Protocol (Stripe)

(Commerce) Visa Launches ‘Agentic Ready’ Programme To Advance Agentic Commerce In Europe (Visa)

(Rewards) Citi ThankYou Devalues Hotel Points Transfers (Choice Privileges & I Prefer) (One Mile at a Time)

(Wealth) JPMorganChase Partners With Sports Legends To Help Athletes Master Their Money (JPMorganChase)

Spot something worth sharing with your team? Drop this week’s edition in their inbox:

https://www.thefreetoaster.com/p/klarna-card-adds-270000-cardholders

Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Fintel Connect.

Upstart applied for a national bank charter to simplify its infrastructure and reduce annual costs by $150 million. JPMorgan Chase currently leads fintech competitors in Buy Now, Pay Later (BNPL) customer satisfaction, according to JD Power. Credit Karma and Better Mortgage launch automated mortgage refi. Also, Delta Air Lines and United Airlines are shifting revenue models toward co-branded credit card agreements to hedge against fuel volatility. Credit Unions also increased card portfolios to $88.6 billion in January, outpacing the growth rate of Commercial Banks.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

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Upstart Applies for National Bank Charter to Simplify Lending Infrastructure

Upstart applied for a national bank charter to replace its current infrastructure of 248 state licenses and 100 bank partners. Morgan Stanley reports this setup costs $200 million annually, or $135 per loan, while a single federal charter reduces those costs to $50 million. This transition generates $150 million in annual savings before additional operational changes.

The company currently maintains 14.6% of originated loans on its balance sheet. Shifting from warehouse funding to deposits lowers the cost of capital and extends loan holding periods, with Morgan Stanley modeling $67 million in additional net interest income compared to 2027 consensus. Combined savings and income reach $217 million, representing a 50% upside to 2027 adjusted EBITDA.

Upstart chose the bank holding company path over the industrial loan company (ILC) route selected by Affirm, placing the firm under Federal Reserve oversight. This structure allows for a broader range of banking products and uses deposit funding as a backstop during restricted securitization periods. LendingClub already operates with a charter, while Affirm applied for its ILC in January. (Upstart, Upstart)

This move shifts how Upstart funds loans and competes with its partners. We’ll discuss this on The Free Toaster Podcast this Friday. If you have a POV you’d like to share on the show, please reply to this email to let us know! We’ll record at 2pm ET on Friday!

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JPMorgan Chase Ranked 1st in 2026 J.D. Power U.S. BNPL Satisfaction Study

JPMorgan Chase ranked first in the 2026 J.D. Power U.S. Buy Now, Pay Later (BNPL) Satisfaction Study with a score of 706, as bank-branded installments outperformed fintech competitors by 101 points. Financial institution-based BNPL products averaged a satisfaction score of 704 following a 59-point YoY increase, while fintech-based services fell to an average of 603. Data shows 52% of bank BNPL users select fixed payment plans during statement reviews to leverage existing credit lines without opening new accounts. This shift toward account-based lifecycle management indicates that integrated digital experiences and perceived security now outweigh the initial approval speed of standalone fintech apps. (JD Power)

Looking for some sunshine, good vibes, and even better fintech discussion this April?

The Free Toaster will be at CardCon in Phoenix and would love for you to join us! The schedule just dropped and promises a wide range of marketing and AI topics.

Get Your Tickets Here

Consumer Lending Holds Steady as Early Signs of Credit Stress Emerge

Bank of America reported consumer loan growth slowed to 2.8% year over year as the market shifts toward a neutral position. Net charge-off rates reached 4.3%, coinciding with an Unemployment Rate increase to 4.4%. Lenders are responding by tightening credit standards and prioritizing portfolio quality over volume growth. Stabilization in deposit pricing is easing funding competition, allowing institutions to focus on margin preservation during the credit softening. (BofA Global Research, March 8, 2026)

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Credit-Card Cash Reshapes US Airline Loyalty — and Profit

Delta Air Lines received $8.2 billion from American Express in 2025, an inflow exceeding its adjusted operating income. United Airlines and American Airlines are shifting revenue models toward co-branded credit card agreements with partners like Citi to hedge against fuel volatility. United Airlines now requires a specific co-branded card to earn miles on basic economy fares, and American Airlines eliminated mileage accrual for those tickets. The National Consumers League characterizes this as a transition toward airlines operating primarily as rewards programs. (Reuters)

Credit Karma and Better Mortgage Launch Automated Refinance Service

Intuit Credit Karma launched a mortgage broker service in partnership with Better Mortgage to automate refinancing for homeowners with interest rates exceeding 6%. The platform replaces traditional lead-generation models with a “as little as five-clicks” qualification system that connects users to options in “as little as 10 days”. This integration combines automated applications with access to live experts to address current housing affordability gaps.

Karma’s vision here? “…saving members over $1 trillion in mortgage interest by driving down the cost of homeownership and making one of life’s biggest financial decisions simpler and more accessible.” (Credit Karma)

Credit Union Credit Card Portfolios Reach $88.6 Billion Following Unusual January Growth

Credit unions increased credit card portfolios by 0.4% from December to January, reaching $88.6 billion in total debt and capturing a 6.8% market share. This growth occurred during a period when the broader market typically experienced post-holiday balance declines, though Commercial Banks still maintain $1.2 trillion in total card debt. The sector reported a 12.3% year-over-year increase in non-revolving loans, including Auto Loans and Personal Lending. Despite monthly gains in revolving credit, credit card growth rates trailed other loan categories within these member-owned institutions. Credit unions currently outpace the growth rate of banks in the card sector while maintaining a significant volume gap. (CU Times)

Looking for a new role?

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Other News We’re Reading

(Fintech) Thredd and Cross River to Accelerate Expansion Into the US Market for Global Fintechs (Thredd)

(Partnerships) Ford and Bread Financial Accelerate Customer Benefits With New Financing Program (Bread Financial)

(AI/Tech) Experian and OpenAI Launch the UK’s First Credit Score App in ChatGPT (Experian)

(Payments) Visa, Mastercard Accelerate AI Tools for Businesses (American Banker)

(Cards) Robinhood Takes on Premium Card Issuers (Payments Dive)

(Banking) Capitol Federal® Savings Bank Partners With CorServ to Meet Commercial Customer Credit Card Demand (PR Newswire)

(Partnerships) 717 and Kent State Launch New Credit Card Partnership (Business Journal Daily)

(Corporate) TransUnion Investor Day to Highlight Its Next Chapter of Growth (TransUnion)

(Open Banking) Truist Expands Open Banking Capabilities With Plaid (Truist)

(AI/Tech) Perplexity Computer Uses Plaid Data to Personalize Financial Management (Perplexity)

(Commerce) From Browsing to Buying: Making Agentic Commerce Real for Merchants (J.P. Morgan)

(Cards) Samsung Doesn’t Look Like It’s Given Up on Its Credit Card Ambitions (Android Authority)

(Legal/Regulatory) Oregon Passes Bill to Opt Out of Federal Rate Exportation (Husch Blackwell)

Spot something worth sharing with your team? Drop this week’s edition in their inbox:

https://www.thefreetoaster.com/p/upstart-applies-for-national-bank

Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

We’ve got a packed edition for you this week, starting with Dave’s Q4 results where quarterly revenue jumped 62% to $163.7 million. While Dave rebounds, the traditional credit system may be showing cracks; a new analysis from ProPublica, a non-profit investigative newsroom, reports that Experian, TransUnion, and Equifax are increasingly failing to correct errors on consumer credit reports. Meanwhile, the race for premium users is heating up with Robinhood’s new Platinum card, and Chime is aggressively rewiring its operations by using AI to handle 70% of member support. We’re also looking at the dawn of agentic commerce as Mastercard, Google, and Affirm build the framework for AI assistants to safely handle your shopping.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

PS: To support us, please ask 1 of your colleagues to subscribe!

How Dave Went From "‘Left for Dead’ to $554M in Annual Revenue

Dave, a neobank that provides mobile cash advances and banking services, finished Q4 2025 with revenue up 62% to $163.7 million and a 50% increase in loan originations, signaling a period of continued growth for the platform. Full-year 2025 revenue hit $554 million, capping a turnaround that would have seemed absurd two years ago. In 2023, Dave's stock was trading under $10 after a SPAC debut that cratered over 90% from its peak. The company was burning cash, cutting staff, and widely written off as another pandemic-era fintech flameout. Net income for the quarter rose 292% to $66.0 million, which suggests the business model is finding its footing. While Monthly Transacting Members (MTMs) reached 2.9 million, CEO Jason Wilk noted this is still a "small fraction" of the 185 million people in their target market. Management also increased the share repurchase authorization to $300 million to return capital to investors. For 2026, Dave expects revenue growth between 25% and 28% along with expanding profit margins. (Dave)

Digging Deeper

Management now talks a lot about their “growth algorithm”. The result: mid-teens MTM growth plus low double-digit ARPU growth. In 2025, both components outperformed. MTMs accelerated to 19% year-over-year, reaching 2.93 million. ARPU grew 36%, driven by a new fee structure that replaced the old tip-based model with a flat 5% fee (capped at $15) on ExtraCash advances.

Here’s where it gets interesting for marketers.

Dave acquired 867,000 new members in Q4 at a $20 CAC. But the company doesn’t optimize for lowest CAC. It optimizes for gross profit per member. Annualized gross profit per MTM hit $167, up $48 year-over-year, while CAC only moved from $16 to $20. Payback periods dropped to under 4 months.

How Dave Will Partner With CCB

Dave is moving ExtraCash receivables off-balance sheet through Coastal Community Bank. Receivables sat at $297 million at year end against $2.2 billion in quarterly originations. Once migration completes by mid-2026, Dave expects to free up $200 million-plus in liquidity and retire its $75 million credit facility.

Dave keeps full economic exposure but pays Coastal to hold the assets. The fee reduces non-GAAP gross profit but gets added back for EBITDA.

Dave Running BNPL Experiments

Dave is testing a BNPL product internally and expects customer testing in April. Limits will run 50% to 2x larger than ExtraCash. No compound interest, no late fees, CashAI underwriting.

Management expects some ExtraCash cannibalization but sees the products as complementary. ExtraCash covers bills, gas, groceries. Pay-in-4 targets discretionary spend where members already use competing BNPL products. Even if it monetizes at a lower rate, Wilk says the longer retention and higher LTV make it a net positive. It also opens a new acquisition channel. BNPL is an easier marketing message than cash advances.

No meaningful BNPL revenue expected in 2026. The focus is proving the unit economics before scale in 2027.

Wrapping Up

Dave’s 2.9 million MTMs sit at roughly 1.6% of what it estimates is a 185 million person TAM. The earnings supplement shows 66% of Americans now live paycheck to paycheck (up from 57% in 2021) with personal savings rates at 4%, half the pre-COVID level. Structural demand for short-term liquidity keeps expanding.

The cost advantage over legacy banks is notable. Per Dave’s management team, their cost to serve runs $56 per customer versus $300 at legacy banks. CAC is $19 versus roughly $500. Fewer than 300 employees, no branches, $2.3 million in annual revenue per employee (up from $1.5 million a year ago). Revenue per employee climbing while headcount stays flat is what AI-driven operations look like when the product and the underwriting model are the same thing.

Dave beat and raised every quarter in 2025. The 2026 guide implies deceleration from 60% to roughly 26% growth, which builds in room to do it again.

The DOJ still has an active case against Dave, alleging the company’s tipping model misled consumers about the true cost of its cash advances. The suit, filed in 2024, claims Dave pushed users toward tips that functioned more like hidden fees. A loss or settlement could force product changes and carry financial penalties. That risk hasn’t gone away. But $227 million in FY25 adjusted EBITDA from a company that was nearly left for dead two years ago may buy them a little extra time.

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The Free Toaster Podcast takes the biggest fintech, credit, and payments stories of the week and breaks down what they mean for growth, distribution, and product strategy. If you read the newsletter, this is the conversation behind it.

Listen on Apple Podcasts, Spotify, Substack, or wherever you get your podcasts.

Be sure to check out our latest pod!

(And if you have a strong opinion on anything in today’s Edition and would like to be on the show - we record at 1:30pm ET on Fridays - reply to this email to let us know!)

Credit Bureaus Are Leaving More Mistakes on Frustrated Consumers’ Reports Under Trump’s CFPB

ProPublica, a non-profit investigative newsroom, reports that Experian, TransUnion, and Equifax are increasingly failing to correct errors on consumer credit reports. These companies generate revenue by collecting and selling financial data, yet a ProPublica analysis indicates they now provide relief to consumers roughly half as often as they did in previous years. Under current federal oversight, the Consumer Financial Protection Bureau has drastically curtailed its enforcement, and the rate at which Experian resolves disputes fell to less than 1% compared to nearly 20% just one year ago. TransUnion also saw its relief rates plunging starting in mid 2025 as the companies changed how they handle consumer complaints. The bureaus attribute these shifts to widespread misuse by credit repair firms, but this change in policy often leaves individuals with documentation of errors unable to fix their scores. Without active regulatory pressure, many consumers remain trapped with incorrect data that prevents them from securing housing or loans. (ProPublica)

Toaster’s Question To Our Readers: It strikes us that as complaint volume increases, a higher % of those complaints might come without merit or justification. We’d love to unpack this further. In anyone in our audience close to this trend and willing to come on the Podcast to discuss? Reply to this email to let us know.

Why Spinwheel Chose to Become a Consumer Reporting Agency

Spinwheel recently transitioned into a consumer reporting agency, a move that changes how the debt and liability data aggregator handles financial information. The company operates a platform that helps lenders and fintechs access fragmented credit data to assist with underwriting and account management. By adopting this status, Spinwheel now follows the Fair Credit Reporting Act to address a substantial gap between modern data tools and traditional credit bureaus. This shift requires the company to maintain rigorous accuracy standards and provide formal dispute processes for users. Lenders can now integrate this data into regulated decision-making workflows with greater regulatory alignment. Sean Anderson, the company's Chief Operating Officer, stated that operating as a consumer reporting agency allows them to bridge that gap by delivering more comprehensive liability intelligence. Consumers potentially see better loan rates when financial providers use more accurate, consumer-permissioned data. (Spinwheel)

Looking for some sunshine, good vibes, and even better fintech discussion this April?

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How Robinhood’s New $695-a-Year Credit Card Stacks Up in a Crowded Market

Robinhood Markets is entering the premium credit card market with a new product that attempts to challenge Amex’s flagship product. The digital brokerage operates a platform for stock trading and retirement accounts and now wants to attract a demographic of higher spenders. This new card carries a $695 annual fee and offers various cash-back incentives for travel and dining. Critics point out that some of these benefits require specific spending hurdles or additional purchases to actually function. Robinhood aims to convert its existing app users into cardholders to compete with established players like American Express and Chase. CEO Vlad Tenev described the card as being annoyingly heavy at a recent launch event. The strategy relies on the high engagement levels of current brokerage customers who already check the app frequently. (WSJ)

When AI Starts Buying For You, Trust Becomes The Product

Mastercard recently collaborated with Google to launch Verifiable Intent, a new technical framework designed for AI-driven commerce. This global payments company provides the infrastructure that allows AI agents to buy products for users without a manual click for every transaction. Since industry experts describe the adoption of these agents as skyrocketing, the company wants to ensure digital assistants do not exceed their spending authority. They are building a record intended to be tamper-resistant that links user identity and specific instructions to every transaction the AI makes. This move aims to keep autonomous purchases authorized and secure. It essentially gives everyone a shared source of truth so merchants know the bot has permission to spend money. If we are going to let bots handle our errands, we need to know they are sticking to the script. By open-sourcing the technology, they are inviting other developers to help build out the standards for agentic commerce. (Mastercard)

Please support our Newsletter by recommending us to one of your colleagues!

And, please check out our sponsors:

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Happy Money Introduces Partner-Branded Program to Help Credit Unions Drive Lending and Membership Growth

Happy Money launched its Partner-Branded Program to help credit unions and banks manage personal loan offerings without building their own internal systems. As a consumer finance finance company, Happy Money operates a lending platform called Hive that connects individual borrowers with loans funded by various financial institutions. This new setup lets partners like MSU Federal Credit Union offer loans under their own brand while Happy Money handles the behind-the-scenes marketing and loan management. The program aims to help local institutions find new borrowers and maintain member loyalty as traditional acquisition costs rise. MSU Federal Credit Union currently uses the system to reach people through direct mail and digital ads to fuel its lending activity. Happy Money manages the underwriting and servicing, which allows these credit unions to add high-yield assets to their portfolios with less operational work. The company has originated more than $6.5 billion in loans since it started, showing a substantial reach in the digital lending space. It is an interesting move because it lets smaller lenders use outsourced tech to compete for personal loans that usually require a significant investment in digital infrastructure. (PR Newswire, Happy Money)

Chime Is Using AI To Rewire How Brands Show Up In Culture

Chime recently announced a multi-year partnership with Major League Soccer, acting as the league's official retail banking and credit card partner. This digital banking platform provides fee-free financial services and now uses internal AI tools to manage its branding and customer outreach. Chief Growth and Marketing Officer Vineet Mehra moved creative production in-house, using AI to reduce campaign development timelines by 60%. The company also replaced its creative agency of record with these automated tools. Mehra estimates AI will save the company millions in agency costs over the next couple of years. On the operational side, AI now handles 70% of member support interactions through voice and chat systems. These efficiencies dropped the cost to serve customers by 60% while reducing repeat inquiries. By automating repetitive tasks, Chime reallocates its budget toward high-profile sports sponsorships to reach younger, digitally active consumers. (Forbes)

Klarna and Stripe Team up to Offer Flexible Payments and Seamless Processing Globally

Klarna and Stripe recently expanded their long-standing partnership to make flexible payment options more accessible to small and medium businesses globally. As an AI-powered payments network and shopping assistant, Klarna provides buy now, pay later services and instant bank transfers for over 100 million customers. This updated integration allows Stripe users in 25 countries to add Klarna to their checkout flows without a complex technical setup. The data shows some merchants experienced a substantial 67% increase in average order value after adopting the service. Stripe provides the underlying payment processing and reliable security that keeps transactions moving during high-volume periods like Black Friday. By upgrading their shared API, the two companies now offer a seamless experience that mirrors a direct integration. This move helps Klarna move beyond its traditional roots in fashion and beauty into new areas like healthcare and auto repair. Both companies seem focused on making it easier for shoppers to choose how they pay while helping merchants track those sales more effectively. (Klarna)

Affirm Expands Stripe Partnership to Support Shared Payment Tokens for Agentic Commerce

Affirm is expanding its partnership with Stripe to integrate its installment lending service into AI-driven shopping platforms. Affirm operates a payment network that offers fixed-term loans for consumer purchases without charging late fees. The new technical setup uses Shared Payment Tokens, which allows AI agents to suggest and initiate purchases with a user's permission. By using these tokens, the system avoids exposing sensitive account credentials during the transaction process. Shoppers see the total cost of their purchase upfront and select a specific repayment plan before the AI assistant completes the buy. Stripe handles the backend processing between the merchant and the lender, even for businesses that do not use Stripe as their primary payment processor. This move follows a collaboration that began in 2021 and aims to standardize how pay-over-time options function within automated commerce. While the tech is evolving, the core goal remains providing a clear payoff date for individual transactions rather than a revolving credit line. (Affirm)

Looking for a new role?

The Free Toaster Jobs Edition tracks where fintech teams are actually investing across marketing, product, data, credit, risk, and partnerships.

The Free Toaster Jobs

The Free Toaster Jobs curates real openings across credit, risk, product, data, and growth, with a focus on consumer fintech and lending. No noise. Just roles that signal where budgets and priorities are moving.

By Toaster Media

Other News We’re Reading

(AI) Splitit and Google Prepare Installment Payments for AI Shopping Agents (PYMNTS)

(AI) TransUnion Advances AI-Driven Credit Intelligence with Google Cloud (TransUnion)

(Fintech) Current And Former Block Workers Say AI Can’t Do Their Jobs After Jack Dorsey’s Mass Layoffs: ‘You Can’t Really AI That’ (The Guardian)

(Lending) Gradbridge Launches Second-Look Private Student Lending Program And Partnership With Hatch Bank (PR Newswire)

(Lifestyle/Travel) American Express Opens First-Ever Sidecar By The Centurion® Lounge (American Express)

(Crypto/Banking) Zerohash Applies For A National Trust Bank Charter To Further Strengthen Regulated Stablecoin & Digital Asset Infrastructure (GlobeNewswire)

(Fintech/Banking) Revolut Seeks US Banking License As Fintech Eyes Expansion (Bloomberg)

(Fintech/Banking) Tech And Finance Layoffs: Oracle, Block, Morgan Stanley, Capital One Headline Brutal Week For Job Losses (Fast Company)

(Payments) Strategic Imperatives Expands Gocardless Integration To Automate End-To-End Billing And Disbursements (GoCardless)

(Cards) Talucard Launches New Biometric Payments Card With Idex Biometrics (FinTech Futures)

(Payments) Sofi And Mastercard Partner To Enable Sofiusd Settlement Across Mastercard’s Global Payments Network (Mastercard)

(Payments/Saas) Stripe Thinks The Subscription Model Needs A Usage-Based Upgrade (PYMNTS)

(Cards) Capital One Ignites Competition With Shift To Discover Network (PYMNTS)

Spot something worth sharing with your team? Drop this week’s edition in their inbox:

https://www.thefreetoaster.com/p/how-dave-scaled-to-1637m-in-q4-revenue

Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Fintel Connect.

We’ve got a packed edition headlined by NerdWallet’s growth paradox, hitting record revenue of $836.6 million even as AI-driven search erosion poses an existential threat to their core model. The AI disruption continues at Block, which is cutting its workforce by 40% in a massive bet on smaller, automated teams. In payments, the landscape is shifting as Stripe expresses interest in acquiring veteran incumbent PayPal, while Klarna surges to 55 million monthly users in its evolution toward becoming a global digital bank. We’re also breaking down Bilt’s new rewards for mortgage spending and a sobering Equifax report showing U.S. consumer debt has accelerated to $18.20 trillion.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

PS: To support us, please share our Newsletter in your internal Slack channels!

NerdWallet’s Growth Paradox: Record Profits Amidst Losing Ground

NerdWallet reported $225 million in revenue for Q4 2025 as the company managed shifts in consumer search behavior. Operating as a financial matchmaking platform, the business earns commissions by connecting users with credit cards, loans, and insurance products. The Loans division saw the most significant movement with a 141% revenue increase to $42.3 million, while the Emerging segment covering banking and investing grew 57% to $52.9 million. Insurance revenue rose 13% to reach $81.2 million, helping offset double-digit declines in the Credit cards and SMB categories. By the end of the year, the team doubled its non-GAAP operating income to $96 million and maintained a cash balance of $98 million. It looks like the company is navigating a tricky search environment by leaning on its lending and banking growth to keep the numbers steady. (NerdWallet)

Toasters Take

We’ll be honest. These numbers are a little puzzling.

The credit cards decline is about what you’d expect. Organic search headwinds have been hitting the category hard, and NerdWallet hasn’t been able to make up the difference in paid media. That’s partly because paid search in the cards vertical is ruthlessly competitive, and NerdWallet is still developing its muscle there. What makes it sting a little more is the broader context: lenders we talk to are actually growing in affiliate channels in cards right now. This isn’t a category that’s rolled over. NerdWallet is losing ground in a market that’s still very much alive.

The insurance story deserves more scrutiny. Auto insurance has been one of the more volatile media categories of the past five years. It surged early in the pandemic, went completely quiet through 2022 and 2023 as carriers pulled back hard, and has roared back through 2024 and 2025 as those same carriers returned with serious budgets. The question worth sitting with is whether NerdWallet’s insurance growth reflects genuine platform strength and execution, or whether they’re simply well-positioned to catch incremental media spend from carriers with money to burn. Those are very different stories.

Stepping back, NerdWallet deserves real credit for growing through what could have been a genuinely ugly stretch. An AI-driven erosion of organic search traffic was an existential threat to their core publisher model, and they navigated it. That’s not a small thing.

But here’s the question that’s hard to shake. If the cards business doesn’t recover, and if insurance carriers eventually cool on their media budgets, what does this business actually look like? Those two scenarios happening at the same time would be a very uncomfortable place to model out. The growth pillars carrying 2025 could deflate at the same moment the legacy credit cards business stays structurally impaired.

The R&D line also stood out. At 7% of revenue and essentially flat year-over-year in dollar terms, it raises a real strategic question for a company whose core business is being disrupted by AI. NerdWallet built its reputation as a trusted destination for financial guidance. That model depends on people showing up to find answers. AI is actively rewiring how consumers do exactly that. If NerdWallet isn’t leaning hard into building its own AI-native experience, someone else will do it for them and take the traffic with it. The window to be the disruptor rather than the disrupted doesn’t stay open forever.

We're going deep on all of this on the The Free Toaster News Pod this week, including bringing in a category expert to help us unpack the insurance question properly. If you have a strong POV on any of this and want to join the conversation, we record Fridays at 1:30pm ET. Reply to this email and let us know.

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The Free Toaster Podcast takes the biggest fintech, credit, and payments stories of the week and breaks down what they mean for growth, distribution, and product strategy. If you read the newsletter, this is the conversation behind it.

Listen on Apple Podcasts, Spotify, Substack, or wherever you get your podcasts.

Be sure to check out our latest pod!

(And if you have a strong opinion on anything in today’s Edition and would like to be on the show - we record at 1:30pm ET on Fridays - let us know!)

Payments Processor Stripe Expresses Interest in PayPal

Stripe is reportedly looking into buying all or parts of PayPal, the veteran digital payments company that helped define the early era of online commerce. As a private firm that builds the software and infrastructure for businesses to accept internet payments, Stripe is making a move that would significantly consolidate the market. While Stripe recently reached a valuation of $159 billion, PayPal has struggled to maintain its pace against mobile-wallet competition from Apple and Google. Patrick Collison, Stripe's president, noted that the company has "had, obviously, a tough time over the past few years" as the competitive landscape changed. Even with PayPal's recent difficulties in updating its technology, the news of a potential deal sent its stock up by a substantial 6.7%. This indicates that investors still see value in the legacy firm, even if it needs a serious hardware and software refresh to stay relevant. It looks like a case of a younger, high-growth firm trying to absorb an older incumbent that once dominated the field. If the deal moves forward, it could reshape how a massive chunk of the internet handles its money. (Bloomberg)

Klarna Reaches 55 Million Monthly App Users as Usage Surges 53% Year Over Year

Klarna now serves 55 million monthly active users as a global digital bank and flexible payments provider that facilitates 3.4 million transactions per day. The company reported a 53% increase in daily engagement compared to last year, with 9 million people using the app on a daily basis. CEO Sebastian Siemiatkowski noted that when people use the app every day, it shows the company is delivering on its vision of becoming a digital bank for the next generation. This growth follows the introduction of several new features, including a debit card, cashback rewards, and peer-to-peer payments in Europe. Recent data from McKinsey suggests these trends align with broader shifts, as nine in ten consumers in the US and Europe now use digital payments. By integrating banking, spending, and shopping into one hub, the platform aims to capture the growing number of users who often leave home without a physical wallet. Klarna appears to be successfully transitioning from a checkout tool into a primary resource for daily money management. (Klarna)

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Block Cuts 40% of Its Work Force Because of Its Embrace of A.I.

Block is cutting its workforce by 40% as the company transitions to a smaller team structure reliant on artificial intelligence. This financial technology firm, which operates Square, Cash App, and Tidal, expects to lose about 4,000 employees in the process. CEO Jack Dorsey claims that intelligence tools change the fundamental requirements of running a business and allow smaller teams to work more effectively. Investors responded by sending the share price up over 26% in after-market trading despite the substantial cost of the layoffs. During a video call to discuss the cuts, Dorsey wore a hat with the word LOVE on it while employees responded with dozens of thumbs down emojis. One worker even questioned the fashion choice during the meeting where Dorsey explained his preference for acting decisively rather than cutting staff gradually. The move represents a significant bet that software can replace a large portion of the company's human staff. While Dorsey believes most companies are late to this shift, his approach marks one of the most visible instances of a firm citing AI as the primary reason for a major staff reduction. (NY Times)

Bilt Rewards Revamps Credit Card Lineup with New Tiered Options for Rent and Mortgage Spending

Bilt Rewards updated its credit card lineup with the Bilt Card 2.0, offering three different tiers aimed at users who want to earn points on rent, mortgages, and daily purchases. Column N.A. issues these cards while the fintech company Cardless Inc. manages the servicing for the Blue, Obsidian, and Palladium versions. You can choose between earning 4% back on everyday spending via Bilt Cash or using a multiplier specifically for housing payments. The Palladium Card sits at the top of the stack with a $200 annual credit and lounge access, though it requires a $495 annual fee. Bilt Rewards handles housing payments by pulling the total directly from your bank account so the transaction does not use up your available credit limit. On the first of every month, the Rent Day promotion allows you to earn double points on non-housing purchases up to a 1,000-point limit. You can add five authorized users to the account to help accumulate points faster, but the primary cardholder stays responsible for all debt. It is a straightforward way to get some kickbacks from a monthly expense that usually offers none. (Bilt)

Equifax National Market Pulse Data Shows U.S. Consumer Debt Accelerating

Equifax released new credit data showing that total U.S. consumer debt reached $18.20 trillion by the end of 2025, a 3.7% increase from the previous year. As a global data and technology firm, Equifax tracks these trends to help financial institutions and government agencies evaluate the economic health of the population. While overall delinquency rates began to drop from recent peaks, they still sit at levels higher than the norms seen before the pandemic. Bankcard balances drove much of this growth, climbing to a substantial $1.12 trillion as consumers continue to rely on revolving credit. This rising debt highlights a persistent K-shaped divide where higher-income earners benefit from asset growth while others deal with the weight of inflation and high borrowing costs. Auto loan balances remained largely flat, but many people are now turning to leasing to find lower monthly payments for expensive vehicles. Student loan debt dipped slightly by 1.4%, yet the resumption of wage garnishment poses a new risk to how people prioritize their monthly bills. It is a complicated picture that shows the American consumer is still spending even if the financial ground feels increasingly uneven. (Equifax)

Figure Doubles Consumer Loan Volume and Adds Auto Lending

Figure Technology Solutions doubled its consumer loan volume year-over-year as the blockchain-native capital marketplace continues to shift how private credit moves. The company hit $2.7 billion in volume for Q4, which represents a 131% increase and suggests borrowers are finding utility in decentralized finance. Their Figure Connect platform now handles over half of that volume, a milestone Michael Tannenbaum says represents "structural progress in how the business operates" by reducing reliance on balance sheet intermediation. They also expanded their reach by partnering with Agora Data to bring auto lending into the mix, effectively creating a capital markets highway for vehicle assets. While the core business grows, Figure also scaled its crypto-backed and small business loans. It is interesting to watch a team build out infrastructure like their new On-chain Public Equity Network while the rest of the market stays cautious. They have found a niche where the tech functions as intended and the growth numbers keep the shareholders engaged. Figure is proving that even technical changes in capital markets can be a win when the execution is this consistent. (Figure)

Gap Inc. Launches Encore, a New and More Rewarding Loyalty Experience For Lovers of Fashion & Entertainment

Gap Inc. launched a new loyalty program called Encore that connects its Old Navy, Gap, Banana Republic, and Athleta brands. As the largest specialty apparel company in America, the retailer is moving beyond standard discounts to offer members things like early product access and events with partners like Disney. CEO Richard Dickson mentioned that customers are looking for brands that shape culture rather than just simple transactions. The program includes three tiers named Core, Premier, and All-Access and it features a marketplace for limited products and charitable donations. For frequent shoppers, a new Mastercard provides points on apparel purchases made at other retailers too. This strategy attempts to turn a basic rewards system into a broader platform tied to entertainment and fashion. It is a clear move to increase customer engagement by linking clothing sales to exclusive brand experiences. (Gap)

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Sources: Block, Chime, LendingTree, Sezzle

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Other News We’re Reading

(Fintech) Stripe Publishes 2025 Annual Letter And Announces Tender Offer To Provide Liquidity To Current And Former Employees (Stripe)

(Lending) FinWise Bancorp Announces Agreement With Albert Corporation To Offer Millions Of Americans Transparent, Affordable And Convenient Short-Term Personal Loans (FinWise Bancorp)

(Fintech) Fintech Chime Sees 2026 Revenue Above Estimates On Strong Demand; Shares Surge (Reuters)

(Cards) LoanPro Partners With NXTMOVES To Deliver Scalable, End-To-End Credit Card Program Management (Business Wire)

(Fintech) Plaid Scores $8 Billion Valuation In Move Closer To 2021 Heyday (Bloomberg)

(Banking) D.C. United Announces Landmark Multi-Year Partnership With Lafayette Federal Credit Union (D.C. United)

(Lending) Synchrony And Polaris Renew Consumer Financing Partnership To Offer Flexible Payment Options For Powersports Customers (Synchrony)

(Lending) Instnt And MarkIII Launch Industry’s First “Double-Indemnity” Solution To Revolutionize The $18 Trillion Consumer Lending Market (PR Newswire)

(Banking) VolCorp Partners With Veep To Offer Earned Wage Access To Credit Unions (CUInsight)

(Banking) Payoneer Files Application For U.S. National Trust Bank Charter To Strengthen Regulated Financial Infrastructure For Global Businesses (Payoneer)

(Payments) Why Adyen Has Partnered With Medius For Corporate Cashback (Fintech Magazine)

(Banking) Credit Unions Caution Against Fighting Bias With ‘Disparate Impact’ Rule (Credit Union Times)

(Payments) Barclays Considers Blockchain Platform For Payments, Deposits (Bloomberg)

(Banking) Backbase And Plaid Partner To Bring Open Finance To AI-Powered Banking (Backbase)

(Cards) MetaMask And Mastercard Partner To Launch The US MetaMask Card, With First-Time Availability In New York (MetaMask)

(Crypto) Meta’s (Possible) Crypto Comeback Highlights Stablecoin Acceleration (Forbes)

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The Free Toaster Team

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Hey Toaster Readers,

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Apple is aggressively moving buy-now, pay-later into the mainstream by embedding one-tap installments directly into the iPhone’s payment sheet for in-store use. This disruption is part of a broader shift in consumer finance, as Upstart expands into revolving credit with Cash Line and Bank of America democratizes its rewards program by slashing minimum balance requirements. Also, AI is rapidly reshaping the industry’s backend, from Intuit and Anthropic’s push into automated accounting to Experian’s new ChatGPT app that streamlines the insurance shopping experience.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

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With a single call to our simple, dev-friendly APIs, Spinwheel offers the only comprehensive connection to your consumers’ financial accounts.

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Apple Pay Pushes BNPL To Offline (In-Store) Transactions

Apple is now pushing the ability for Apple Pay users to pay with installments at the physical register, not just online and in apps. With iOS 26, installment options show up right inside the Apple Pay payment sheet when you tap to pay in store. What used to require opening a separate app or converting a purchase after the fact is now a one-tap decision at the moment of payment. Apple is not lending directly. Loans come from participating providers including Affirm, Klarna, Citi, and Synchrony. The feature is also rolling out internationally across Canada, the UK, France, Italy, Spain, Denmark, and Sweden. (Apple Support) (PYMNTS)

How It Actually Works

You’re at the checkout register. You double-click your iPhone’s side button and your Apple Pay card appears. If your linked card supports installments, you’ll now see two options: Pay In Full and Pay Later.

Tap Pay Later and you’re shown the installment plans available from your card issuer or BNPL provider, including terms, payment schedule, and any conditions. Select a plan, tap Agree & Continue, confirm with Face ID, and hold your phone to the reader. Done.

You can even set up an installment plan after your purchase. Complete the transaction normally, and when the notification comes in, follow the prompts to convert it to a plan retroactively.

Previously, you loaded your card, made the purchase, and then maybe went to Affirm or your issuer’s app to convert it later. Now the installment option is right there at the point of decision. The friction is gone.

Toaster’s Take

This isn’t any ‘ole product launch. Now lenders have to compete for transactions on the basis of rewards AND their BNPL options.

Buy now, pay later started niche. It expanded online. It became a major category with Affirm. Now it’s embedded at the operating system level by Apple. That signals that BNPL has reached the mainstream adoption curve, and if you’re a card issuer not offering installments, you need to stop and think about what you might be missing by sitting out.

Offline is the Real Unlock

BNPL has historically skewed online, but roughly 3 out of every 4 U.S. retail dollars are still spent in store. E-commerce accounted for just 16.4% of total U.S. retail sales in Q3 2025, per the U.S. Census Bureau. Meanwhile, Apple Pay already captures about 54% of in-store mobile wallet transactions and accounted for 10.2% of eligible in-store purchases in 2025 according to a PYMNTS Intelligence study of 3,339 U.S. consumers. By putting installment options at the physical register, Apple is expanding BNPL’s addressable market in a big way. This may be the bigger story: not that Apple supports installments, but that it’s pushing them into the ~83% of retail that happens offline.

The Wallet Becomes a Marketplace

Apple chose not to give exclusivity to a single BNPL provider. Affirm, Klarna, Citi, and Synchrony are all visible inside the wallet, creating competitive territory at the moment of payment. Think of it like how issuers compete for new accounts inside Credit Karma, except this marketplace lives one tap away from every transaction. It’s not enough to just integrate. Winning placement inside the wallet becomes a real operational focus. We wouldn’t be surprised if lenders eventually need to dedicate teams to manage and grow their Apple Pay wallet share (if that’s not happening already).

Acquisition is No Longer Episodic

Previously, issuers competed on rewards, perks, and credit limits. Customer acquisition happened once in a while. Someone opened a card once a year, maybe. Now every single checkout is a decision moment. Apple puts “pay in full” and “pay later” side by side. The user chooses every time. Fighting for share of wallet might have just hit its Apple Pay BNPL moment.

The Bottom Line

More than half of U.S. smartphone users are on iPhones and an estimated 65.6 million people in the U.S. use Apple Pay. Google Pay supports some BNPL options through partners, but hasn’t embedded a native installment experience as deeply as Apple has. If this gains traction, expect Google to follow and wallet-level installment marketplaces to become standard.

We keep seeing the signs. Issuers may no longer be able to ignore offering BNPL on their card products. Not when Apple puts it one tap away on every iPhone.

The Free Toaster Podcast takes the biggest fintech, credit, and payments stories of the week and breaks down what they mean for growth, distribution, and product strategy. If you read the newsletter, this is the conversation behind it.

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Upstart Announces Cash Line, Bringing Always-On Credit to Millions of Americans

Upstart is launching Cash Line, a revolving line of credit intended to provide consumers with persistent access to funds. As an AI-based lending marketplace that matches borrowers with over 100 banks and credit unions, the company is positioning this product as a more predictable alternative to traditional cash advance apps. The service offers a minimum credit limit of $200 for approved users, with the potential to reach $5,000. Upstart also includes a feature called Rest Mode to give borrowers more flexibility over their repayment schedules. Users pay a $10 monthly membership fee for credit lines up to $500, while larger draws incur an APR ranging from 5% to 36%. Although a full release is scheduled for later in 2026, the company is currently opening a waitlist for a beta version of the platform. This move shifts the company further into the revolving credit space, moving beyond its existing focus on personal, auto, and home equity loans. (Upstart)

Toaster Readers: Is this innovative or the 10th rendition of this in the marketplace? If you have a strong POV we’d love to have you on the Podcast to discuss. Reply to this email and let us know.

New BofA Rewards™ Program to Reach Millions More Clients with Expanded Benefits

Bank of America is replacing its current rewards structure with BofA Rewards, a loyalty program that removes previous balance requirements for anyone with a personal checking account. This financial institution, which provides banking and investment services to roughly 70 million clients, previously required a $20,000 minimum balance for similar perks. Starting May 27, about 30 million additional customers qualify to enroll and access benefits like credit card bonuses and cash back deals. Depending on how much a member uses the program and their specific tier, the bank estimated the annual value of these perks ranges from $150 to $4,000. Higher-tier members also receive credits for streaming services and access to events related to travel or motorsports. The company also updated its mobile app to help users track and activate these offers more easily. By shifting to this model, Bank of America attempts to capture a wider range of customers regardless of their current account balances. (Bank of America)

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Intuit and Anthropic Partner to Bring Trusted Financial Intelligence and Custom AI Agents to Consumers and Businesses

Intuit, the financial technology company that operates TurboTax and QuickBooks, is partnering with AI firm Anthropic to integrate automated agents into its software for mid-sized businesses. This multi-year agreement allows these companies to use the Claude language model to build agents for specific tasks like accounting and compliance workflows. A restaurant owner could potentially use the system to identify variances in profit margins by connecting sales data with payroll records. On the consumer side, Intuit is linking its financial data with Claude so users can estimate tax refunds or create invoices directly within Anthropic’s apps. Intuit is also providing Claude Code to its own engineers to speed up software development. While the companies describe the tools as a significant shift in capability, they noted that the systems rely on Intuit’s existing data and security infrastructure. These features are expected to begin rolling out in spring 2026. This move suggests that the future of personal finance might involve handing off the more repetitive aspects of bookkeeping to automated systems. (Intuit)

Experian Launches Insurance Marketplace App on ChatGPT

Experian launched its Insurance Marketplace app on ChatGPT, providing a way for people to shop for auto insurance through a chat interface. This global data and technology company, which handles credit reporting and financial services, aims to replace traditional forms with a conversation that allows users to compare rates from 37 carriers. Instead of clicking through various websites, users provide a ZIP code to see different coverage options and estimated prices. The company states that this process can help consumers find savings that sometimes exceed $1,000 per year. This move is part of a broader plan to move financial decision-making into AI environments. While users can explore prices in the chat, they must still go to the company website to finish a personalized quote. This setup attempts to simplify insurance shopping by using a bot to organize information that is usually spread across static pages. (Experian)

TransUnion 2026 Originations Forecast Shows Continued Positive Momentum Amidst Moderate Expansion

TransUnion, a global firm that collects and analyzes consumer credit data for businesses, expects credit originations to grow at a moderate pace through 2026. While the 2025 spike in auto loans will likely slow down as federal EV tax credits expire, mortgage and personal loans are taking over as the primary drivers of growth. Homeowners are seeing more options as interest rates move lower, which improved affordability and led to a sixth straight quarter of growth for home equity products. In the personal loan market, originations reached 7.2 million as fintech lenders took a 42% share of the sector. Despite these high volumes, TransUnion reports that lenders are staying cautious with risk because delinquency rates rose across several categories. Consumers are still using credit regularly, with total card balances reaching a substantial $1.15 trillion while the growth rate begins to level off. The data suggests the credit market is returning to traditional patterns following a period of high inflation. (TransUnion)

GoCardless Introduces AI-Native Tool for Businesses to Communicate With the Platform in Natural Language

GoCardless, a bank payment company that specializes in direct debit and instant payment processing, released its Model Context Protocol to help developers interact with its platform using natural language. This tool allows businesses to use large language models to communicate with the system, potentially reducing the time required to integrate the service into their own websites. Instead of manually searching through technical documentation, a user like a gym owner can ask the AI for specific information, such as which payments are overdue. The company notes that this setup simplifies workflows today while providing a foundation for future AI agents to handle transactions independently. This update follows a pattern of the firm using machine learning to handle failure rates and identify high-risk transactions. One of its existing tools, Success+, currently recovers an average of 70% of payments that do not go through on the first attempt. It is an interesting shift toward making financial back-ends more approachable through conversational interfaces. (GoCardless)

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Sources: Block, Klarna, Upbound

Looking for a new role?

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By Toaster Media

Other News We’re Reading

(Partnership) Major League Soccer Names Chime Official Retail Banking, Credit Card, and Debit Card Partner (MLS)

(Banking) Equifax Delivers Optimal Path™ Directly to U.S. Consumers via the myEquifax Mobile App (Equifax)

(Legal) Baltimore Sues Fintech Company Dave Over ExtraCash Overdraft Product (JD Supra)

(Policy) Kansas Bankers Launch Campaign Against Marshall-Backed Credit Card Legislation (KCTV5)

(Fintech) Stripe‘s Bridge Secures Conditional OCC Approval For National Trust Bank Charter (Payments Dive)

(Lending) DailyPay Upsizes Secured Credit Facility To $960 Million (PR Newswire)

(Crypto) Quantoz Partners With Visa To Make Stablecoins Spendable (Quantoz)

(Payments) Desert Financial Credit Union Partners With Alacriti To Unify Instant And Legacy Payments (Alacriti)

(Banking) Backbase And Plaid Partner To Bring Open Finance To AI-Powered Banking (Backbase)

(Payments) Britain Plots Visa Rival Over Fears Trump Could Pull The Plug On Payments (The Guardian)

(Partnership) Visa Renews Partnership Across Red Bull Formula One Teams (Visa)

(Finclusion) Ericsson And Mastercard Enhance Global Digital Money Movement And Accelerate Digital Financial Inclusion (Mastercard)

(Retail) eBay Partners With TrueLayer To Offer Pay By Bank At Checkout (TrueLayer)

(M&A) Grab Accelerates Financial Services Roadmap With Acquisition Of Digital Investing Platform, Stash Financial, Inc. (Grab)

(Banking) Marshall Community Credit Union Selects Mahalo Banking To Enhance Digital Agility (Business Wire)

(Cybersecurity) Cloudflare And Mastercard Partner To Extend Comprehensive Cyber Defense Across Critical Infrastructure And Small Businesses (Mastercard)

(Lending) Credit Unions Warm Up To Small-Dollar Loans, Challenging EWA (American Banker)

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https://www.thefreetoaster.com/p/apple-just-put-bnpl-into-65-million

Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Fintel Connect.

We’re looking at why Cash App thinks its ecosystem could be a better judge of credit than the big banks. Block, it’s parent company, is officially launching a waitlist for lenders to buy its internal consumer credit scores, betting that real-time data from Afterpay and Cash App Borrow is more predictive than a traditional FICO.

Credit Unions are arming themselves with AI to level the playing field. Between First Financial of Maryland’s new partnership with Scienaptic AI and the launch of the CU Lending Collective by Commonwealth and Zest AI, smaller institutions are finally getting the tools to compete with national lenders. We also have a must-read update on a sophisticated social engineering attack at Figure and a heated legislative battle in Oregon over a proposed 36% interest rate cap.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

PS: To support us, please share our Newsletter in your internal Slack channels!

Cash App to Sell its Credit Score

Block, the digital payments firm behind Cash App, just launched a waitlist for lenders interested in buying its internal consumer credit scores. By analyzing data from its buy now, pay later service Afterpay and its Cash App Borrow feature, the company provides a window into how people handle non-traditional finance. This move targets a massive audience, as Cash App reports 58 million monthly active users who often skip traditional banks. While Block is not disclosing the exact price for this data yet, it is already talking to several parties about integrating the scores into their underwriting processes. The expansion follows a period where the firm loaned consumers more than $100 billion since 2022. This strategy reflects a broader shift in the market, as players like Experian and FICO also began tracking installment loan data recently. Block is betting that its unique view of borrower behavior will be a valuable asset for third-party lenders looking to reach a younger demographic. (Payments Dive)

Making Sense of What’s Going On

Prithvi Prabhu, a Free Toaster reader, helped us make sense of this story in last week’s News Pod.

Block is selling a unique view of the underbanked, but Prithvi suggested this view might be through a filtered lens. A 97% repayment rate for sub-580 FICO borrowers looks like a fintech miracle on a slide deck — the reality, though, is more mundane.

The Short-Term Trap

The fundamental issue is duration mismatch. Cash App Borrow is a three-week cash advance, not a multi-year installment loan. Prithvi pointed out that in the payday and cash advance world, a 97% repayment rate is actually pretty ordinary. Comparing that to a FICO score designed for an 18-month horizon is like judging a marathon runner’s stamina based on their first 100-meter dash.

The Lagging Disaster Risk

There is a specific danger for lenders eyeing Block’s claim of approving 30% more auto loans at identical loss rates. If those lenders use short-term data to underwrite multi-year debt, the early results will look fantastic. This often leads to doubling down on volume just before the long-term risk surfaces 6–9 months later. We’ve seen this movie before, lenders building models on payday data often end up with a massive book of bad loans once the honeymoon phase ends.

The Structural Ceiling

Beyond the risk, there are two major hurdles for Cash App’s scoring ambitions:

1. Pre-screening: Credit bureaus allow lenders to target creditworthy people before they apply. Cashflow data requires the user to already be in the ecosystem, making it an ancillary tool rather than a FICO killer.

2. The Recession Test: Cash App’s data hasn’t survived a true, sustained recession. Its 580-FICO user base is historically the most vulnerable during a downturn, and we don’t yet know how that 97% repayment holds up when the macro environment truly sours.

Block is successfully productizing its ecosystem, but for third-party lenders, buying these scores might mean buying into a short-term signal that lacks long-term staying power.

Big shout out to Prithvi for helping us contextualize this story!

The Free Toaster Podcast takes the biggest fintech, credit, and payments stories of the week and breaks down what they mean for growth, distribution, and product strategy. If you read the newsletter, this is the conversation behind it.

Listen on Apple Podcasts, Spotify, Substack, or wherever you get your podcasts.

Be sure to check out out our latest pod!

(And if you have a strong opinion on anything in today’s Edition and would like to be on the show - we record at 12pm ET on Fridays - let us know!)

TransUnion Announces Strong Fourth Quarter and Full-Year 2025 Result

TransUnion reported its fourth quarter results with revenue climbing 13% to $1.17 billion. The company exceeded its own financial guidance, supported by a 16% revenue increase in its U.S. Markets segment. Much of this growth came from the financial services sector, which saw a 19% surge. For the full year 2025, the company brought in $4.58 billion in total revenue, up 9% from the previous year. TransUnion also bought back $300 million in shares over the course of the year and increased its quarterly dividend to $0.125.

The company issued a 2026 forecast expecting revenue growth between 8% to 9%. CEO Chris Cartwright attributed the recent momentum to a multi-year strategy involving credit and fraud solutions. Cartwright stated, “TransUnion finished the year strongly with results that again exceeded financial guidance,” noting that commercial momentum is driving the business. While the firm is watching variables like inflation and interest rates, it plans to detail its technology updates at an upcoming Investor Day. (TransUnion)

First Financial of Maryland Federal Credit Union Adopts Scienaptic AI to Automate Credit Decisions

First Financial of Maryland Federal Credit Union, a member-focused institution managing over $1.3 billion in assets, teamed up with Scienaptic AI to update its lending process. First Financial serves over 77,000 members and wants to ensure that every member feels understood and supported while modernizing its credit decisions. By plugging in the Scienaptic AI platform, a tool for automated credit decisioning, the credit union can now analyze more data points to approve more loans while managing risk. Scienaptic AI already supports decisions for over $250 billion in loans and specializes in helping lenders reach underbanked communities through machine learning. This partnership aims to increase speed and consistency while maintaining the member-first focus of the credit union. It represents a shift for the Maryland community because these analytics help people access credit who might have been overlooked by traditional methods. After all, banking is a lot more practical when the software actually helps you get the green light on your next loan. (Scienaptic AI)

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Commonwealth Credit Union and Zest AI Partner to Launch CU Lending Collective

Commonwealth Credit Union, a financial institution that provides banking services to its members, is partnering with Zest AI, a company that develops automated underwriting software, to launch the CU Lending Collective. This new organization aims to help smaller credit unions implement automated lending tools without the high costs or operational hurdles usually found with this technology. After Commonwealth Credit Union grew its own loan volume by more than 14% using these tools in 2025, it decided to provide a blueprint for other small lenders to follow. Zest AI will build custom models to analyze credit risk for auto loans, personal loans, and credit cards more accurately than traditional scoring methods. The program focuses on keeping small lenders competitive by giving them access to the same machine learning tech used by larger firms. It also includes built-in features to help these institutions meet regulatory and fair lending requirements. By sharing operational expertise and technology management, the collective helps community lenders approve more members while managing risk. (Zest AI)

Happy Money Deepens Partnership with Edge Focus to Further Expand Access to Responsible Credit

Happy Money, a consumer finance company that provides personal loans for credit card debt consolidation, recently expanded its partnership with Edge Focus. This move gives the lender access to an additional capital channel to reach more borrowers. After making updates to its Hive lending platform last year, Happy Money increased its monthly loan originations more than 400% while maintaining steady asset performance. Edge Focus, a firm specializing in private credit, indicated that it plans to use the partnership to increase the availability of personal loans. The deal comes as institutional interest in this specific asset class grows. By using a variety of funding partners, Happy Money aims to scale its operations across different market conditions. The company has originated over $6.5 billion in loans to date. (PR Newswire)

Figure Confirms Data Breach Following Social Engineering Attack

Figure, a financial technology firm that uses blockchain to provide home equity lines of credit, recently confirmed a data breach after a social engineering attack targeted an employee. This trickery allowed hackers to snatch a limited number of files, though the company has not specified the total number of people affected. The hacking group ShinyHunters claimed responsibility for the incident on their dark web leak site, releasing 2.5 gigabytes of allegedly stolen data after the company reportedly refused to pay a ransom. This cache includes sensitive details like full names, home addresses, and dates of birth. Figure is currently offering free credit monitoring to those affected as they manage the fallout. The hackers claim this hit was part of a wider campaign targeting users of the single sign-on provider Okta, a spree that also included Harvard University and UPenn. It is a blunt reminder that even in a high-tech lending environment, human error can leave the door open. (TechCrunch)

Oregon House Committee Passes Bill Designed to Curb High-interest Lending

The Oregon House Committee on Commerce and Consumer Protection passed House Bill 4116 to tighten enforcement of the state’s 36% interest rate cap on short-term consumer loans. This bill targets out-of-state companies that provide quick cash to borrowers by closing a loophole that currently allows them to use the higher interest rate limits of their home states. While 98% of licensed lenders in the state already follow the cap, state data shows that five companies have issued 22,000 loans with rates above the limit since 2020. The committee split along party lines with a 6 to 4 vote because Republicans argued the change would limit credit options for people in financial emergencies. Representative Nathan Sosa, a sponsor of the bill, noted that Oregon established this 36% limit 20 years ago and simply wants to ensure everyone complies. This year’s version of the bill has more than 20 sponsors, which gives it more momentum than a similar attempt that failed in the Senate last year. Supporters are focusing on affordability as a major issue for their constituents as the bill moves forward to its next hurdle. (The Oregonian) (Oregon Live)

Adyen Launches ‘Personalize’ to Tailor Checkout Experiences in Real-Time

Adyen, a financial technology platform that processes payments for companies like Meta and Uber, just launched a tool called Personalize to modify the online checkout process in real-time. This new addition to their Uplift suite uses AI to change checkout pages based on how a shopper behaves, essentially predicting a preferred payment method before they start typing. Since about 37% of people abandon their digital carts if the process takes too long, Adyen is attempting to reduce that friction to keep more sales moving. The company reported that businesses using this dynamic approach saw payment conversions rise by an average of 1.19%, with some reaching a 6% increase. Beyond just speed, the system highlights payment methods that are cheaper for the merchant to process, which helps address the significant pressure that 72% of businesses feel from high transaction fees. It is a straightforward attempt to make the chore of paying for things less annoying so shoppers actually finish their purchases. For merchants struggling with a clunky user interface, this functions as a strategic update to help protect profit margins. (Adyen)

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Sources: Adyen

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Other News We’re Reading

(Banking) Truist Launches Secure Open Banking Experience (Truist)

(Legal) Civil Rights Division Secures $68M Settlement In Predatory Land Sales And Lending Lawsuit (Department of Justice)

(Cards) Wells Fargo Expects Credit Card Loan Growth To Continue This Year (Reuters)

(Marketing) Making Marketing More Human: How Chime Is Building An AI-Powered Brand With Empathy At The Center (Chime)

(Lending) Figure CEO Michael Tannenbaum On Partnering With Bed Bath & Beyond (HousingWire)

(Fintech) Pliant’s American Dream Takes Flight With Visa (FinTech Futures)

(Payments) Amazon: Payment Options To Include Pay-By-Bank And Prime (Fintech Magazine)

(Partnerships) NBA, American Express Announce Multiyear Partnership Extension (NBA)

(Regulation) Illinois Judge Rules In Favor Of Swipe-Fee Ban On Sales Tax And Tips (American Banker)

(E-commerce) Google Launches Agentic Commerce With Etsy And Wayfair (PYMNTS)

(Payments) Cash App Launches Payment Links: An Even Smpler Way To Request Money (Cash App)

(Savings) Experian Makes Saving Even Smarter With New High Yield Digital Savings Account (Experian)

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The Free Toaster Team

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MoneyLion reported 40% year-over-year revenue growth this quarter , largely driven by its Engine marketplace even as its parent company, Gen Digital, saw its core business grow at a lower rate. In the creator space, MrBeast’s Beast Industries acquired the fintech app Step, which currently serves 7 million users, to test if large-scale social media reach can be converted into a banking customer base. Meanwhile, Affirm reached a profitability milestone and reported a 36% increase in Gross Merchandise Volume while simultaneously applying for a bank charter to gain more regulatory autonomy.

Lots to break down. Let’s get toasting!

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MoneyLion’s 40% Growth Outpaces Gen Digital’s Core Business

MoneyLion, tucked inside Gen Digital’s portfolio, pulled in roughly 40% year-over-year revenue growth this quarter. The platform bundles banking, credit, and investment tools in one place. That growth helped the Trust-Based Solutions segment hit $421 million, while the core Cyber Safety business plugged along at its usual 3% to 4%. MoneyLion’s staying profitable as some competitors struggle with margins.

The interesting part is what’s happening with their Engine marketplace, which is actually outpacing the consumer app right now. Revenue splits about 60/40 between personal finance products like InstaCash and RoarMoney versus the Engine marketplace.

On the partnership front, MoneyLion teamed up with Equifax to add financial advice features to myEquifax.com. They’re also testing Money One, a subscription that packages financial services with Norton and LifeLock identity protection.

CEO Vincent Pilette positioned it as a response to how AI is changing both security and finance: “As AI transforms digital life and the threat landscape, consumers need protection and guidance they can trust. By uniting advanced intelligence and signals across security, identity and financial wellness at unmatched scale, we’re delivering personalized protection and contextual recommendations for our customers at the moments that matter the most.” The is essentially turning customer data into personalized recommendations across an integrated financial platform. (Gen Digital)

Toaster’s Take

Word in the industry is that Engine’s traffic has historically skewed towards subprime consumers. With Gen Digital’s footprint in security and ID theft brands, we think Gen has an opportunity to diversify the traffic mix more towards prime, which should attract more business from the big prime lenders in the category like SoFi, Lending Club, and many other fintech lenders.

The Free Toaster Podcast takes the biggest fintech, credit, and payments stories of the week and breaks down what they mean for growth, distribution, and product strategy. If you read the newsletter, this is the conversation behind it.

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MrBeast’s Company Buys Gen Z-focused Fintech App Step

YouTube creator MrBeast is moving into the financial services sector through the acquisition of Step, a banking app that provides credit-building and money management tools for younger users. Operating through Beast Industries, the 27-year-old aims to offer the financial education he says he lacked during his own youth. Step previously raised half a billion in funding and reports a user base of over 7 million people who use the platform to save and invest. This acquisition follows a leaked pitch deck from last year that identified financial services as a target area for his holding company. While his food brands like Lunchly have faced operational difficulties, his chocolate company Feastables currently serves as a primary revenue driver for these new ventures. By integrating Step into an ecosystem of 466 million subscribers, the company is testing whether influencer reach can convert fans into long-term banking customers. (Tech Crunch)

Toaster’s Take

Consumer lending and finance businesses are harder than they look. Plugging in influencer distribution (while very smart!) does not guarantee success because managing regulatory requirements, credit risk, and unit economics is a different game than drumming up views on YouTube videos. Other creator-led ventures have struggled once the initial novelty faded and the realities of financial operations took over. If Beast Industries wants this to be more than a headline, they must prove they can handle the challenges of building a consumer finance business.

Affirm Hits Profitability Milestone as it Charts a Path Toward Banking

Affirm, a buy-now-pay-later company that provides installment loans and digital payment services, reported that its Gross Merchandise Volume grew by 36% year-over-year. The company is emphasizing 0% APR offers as a primary strategy, which CEO Max Levchin claims is a deliberate move toward simpler terms. Levchin stated, “When Affirm says no interest, we actually mean no interest. There’s no asterisk. There’s no explanation as to what might happen if you are a penny short or a day late.” Despite the high volume of interest-free loans, the company maintained its revenue margins while expanding its merchant network.

The Affirm Card is seeing increased use, with card-related volume rising by approximately 160%. This growth suggests the product is shifting from a niche offering to a more significant part of the company’s business model. To further drive volume, the company introduced Boost AI, a tool that allows merchants to allocate specific budgets toward automated promotions. Levchin described the shift by saying the tool “looks more and more like an advertising model versus a cost-of-acceptance model.”

On the financial side, Affirm is seeing improved conditions in the capital markets, which helps fund its 0% interest offers. The company is also pursuing a bank charter, though management describes this as a long-term plan for regulatory stability rather than a tool for immediate growth.

This shift toward becoming a fully integrated financial institution aligns with several developments previously covered by The Free Toaster. The company recently began reporting more data to Experian to help users build credit histories which served as a precursor to their current bank charter bid. By moving into new areas like home improvement and auto repair, the company is steadily positioning itself as a broad alternative to traditional revolving credit. (Affirm)

Wells Fargo Launches Ad with Comedian and Actor Marcello Hernández

Wells Fargo, a financial services firm holding about $2.1 trillion in assets, is returning to the Big Game with a new ad campaign featuring comedian Marcello Hernández. The Celebrating Every Win spots show how the company's mobile app tracks personal financial tasks like growing a savings account or managing a budget. Hernández appears in the ads with music and confetti to mark these small financial milestones. This campaign uses humor to highlight the various steps that contribute to long-term financial health. A teaser for the campaign arrived on February 2, with the full 30-second commercial airing during the Big Game in regional markets and on Telemundo. The national rollout continues on February 8 across streaming platforms and social media, aiming to show that basic financial progress is worth acknowledging. (Wells Fargo)

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Chase and Disney Launch the Disney® Inspire Visa® Card Featuring Exclusive Benefits for Cardmembers

Chase and Disney just launched the Disney Inspire Visa Card, a new credit card option that provides rewards for theme park visits and streaming services. Chase functions as the consumer and commercial banking wing of JPMorgan Chase, offering financial services like mortgages and auto financing to millions of customers. Disney operates as a global entertainment company with major segments in media, sports, and theme park experiences. This new card carries a $149 annual fee and offers new members a $300 gift card plus a $300 statement credit after they spend $1,000 in the first three months. Cardmembers earn rewards on purchases at gas stations, grocery stores, and restaurants, with higher earning rates for Disney streaming services and most domestic Disney locations. The card also includes an annual $120 credit for services like Disney+ and Hulu, along with 0% interest for six months on certain vacation packages. Users can choose from several card designs featuring characters like Mickey Mouse or Stitch. Additional perks include discounts on select dining and merchandise at domestic theme parks and resorts. (Chase)

Bilt Users Get Surprise Wells Fargo Cards as Partnership Ends

Wells Fargo, a global financial services firm, and Bilt, a loyalty platform that allows renters to earn points on housing payments, ended their four year partnership on February 7. The transition took a messy turn as many customers who opted to close their accounts still received new Wells Fargo Autograph cards in the mail. The bank reportedly began mailing these cards on January 26 to ensure delivery by the deadline, even though Bilt users had until February 1 to choose a different provider. Both companies are now advising confused recipients to simply destroy the cards because they are inactive and cannot be used. This awkward exit follows previous reports that the arrangement was souring, with Wells Fargo allegedly losing 10 million per month on the deal. Bilt has already launched three new cards with 10% interest rates for the first year, following political calls to cap rates at that level. Meanwhile, data shows consumer credit balances recently saw a nearly $200 monthly increase, suggesting a tighter financial landscape for many cardholders. (PYMNTS)

Industrial Loan Charters Take Center Stage as De Novo Banking Makes a Comeback

Maybe we all just need to ask if banking is finally getting its groove back because de novo banking is making a primary comeback through a clever side door. PYMNTS reports that Industrial Loan Companies (ILCs) are the new star of the show, letting non-banks like Ford Motor Company and General Motors play banker without all the traditional red tape. These ILCs, which provide state-chartered and FDIC-insured services, allow firms to take deposits and hunt for loans while skipping traditional bank holding company status. This gives companies direct control over their customers' wallets and underwriting. PayPal is even jumping into the ring with its own bank application, proving that even the biggest payment giants want to own core banking infrastructure instead of just renting it. Of course, old-school banking groups are throwing political heat at the idea, worried that these loophole banks create an unfair advantage and dodge Federal Reserve oversight. Treasury Secretary Scott Bessent is cheering for more new banks to save our disappearing community institutions, but regulators still have to figure out how to keep things safe without killing the fun. It’s a classic showdown between legacy giants and digital disruptors, and the ILC path is currently the hottest ticket in town. (PYMNTS)

Why Businesses Are Replacing Checks With Virtual Cards and ACH

American Express, a global financial services company that operates payment networks and issues credit cards, is seeing a shift as more businesses transition from paper checks to virtual cards and ACH. While corporate back offices previously relied on manual paperwork and mail-in checks, new digital tools from AmEx, Visa, and Truist are increasing the rate of supplier acceptance. Visa, a major global payments processor, recently introduced a platform for small business capital and digital tools, while Truist Financial launched an AI-driven system to automate business receivables. Waiting for a physical check is becoming less common now that finance teams can access real-time status updates and automated approvals. These digital methods allow companies to route payments based on specific needs for speed, cost, or control. By reducing the time it takes to process cash, businesses are finding that digital payments help stabilize their balance sheets. It appears that simplifying the payment process leads to a more efficient experience for both buyers and vendors. (PYMNTS)

STAR Financial Bank Partners with CorServ to Meet Demand for Enhanced Commercial Credit Cards

STAR Financial Bank, a community bank with $3 billion in assets and an 80-year history in Indiana, is updating its commercial service offerings. By partnering with CorServ, a company that provides credit card issuing technology for banks and fintechs, the bank is launching a new credit card program for its business clients. STAR Financial Bank is providing its commercial customers with more flexibility and control by moving away from traditional referral models to keep more margin for itself. The new program introduces purchasing cards, including virtual and ghost card options that integrate into ePayables for vendors. Business owners can now set employee spend limits and access automated, customized rebates, allowing the community bank to offer features similar to those of national banks. CorServ manages the backend technology so STAR Financial Bank can provide modern issuing tools without adding significant internal staff. This setup allows local businesses to access specialized spending tools while the bank maintains its existing service model and increases its direct revenue. It is a practical move for a local bank looking to keep pace with modern payment technology. (PR Newswire)

Super Bowl 2026: The 11 Fintech Companies That Paid $8 Million or More for an Ad

While the Seattle Seahawks secured a 29–13 win on the field, eleven fintech brands paid an $8 million average for a 30-second spot to reach viewers during Super Bowl LX. Rocket Companies, a mortgage and personal finance lender, and Redfin, a tech-driven real estate brokerage, shared an ad featuring Lady Gaga to focus on community themes. Coinbase, a cryptocurrency exchange platform, returned to the game with a 60-second karaoke-style commercial. We also saw Ramp use Brian Baumgartner to demonstrate their expense management software, while Rippling hired comedian Tim Robinson to show the operational failures of a company's onboarding and payroll systems. Intuit TurboTax, a tax preparation service, featured Adrien Brody in their ad and used the surrounding events to promote financial literacy programs for students. Even AI companies like OpenAI and Anthropic’s Claude appeared, highlighting their efforts to provide automated tools and analytics for the financial sector. The price for these spots reached record levels, with some advertisers paying $10 million or more due to high demand. (Finextra)

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Sources: Pagaya, OneMain Financial, Upstart, Dave

Looking for a new role?

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Other News We’re Reading

(M&A) TransUnion Announces Definitive Agreement To Acquire Mobile Division Of RealNetworks To Enhance Voice And Messaging Solutions (TransUnion)

(Crypto/Rewards) Fold Launches Unified App Experience To Bring Bitcoin Rewards And Everyday Spending Into One Financial Home (GlobeNewswire)

(Payments) Checkout.com Announces Strategic Partnership With Spotify To Power Efficient, Scalable Payments Globally (Checkout.com)

(Fintech Policy) Blank Rome Joins American Fintech Council (AFC) To Support Fintech Policy And Regulatory Dialogue (Fintech Council)

(Financial Wellness) BMG Money Reinforces Its Mission To Advance Financial Wellness With Sqwire Partnership (Business Wire)

(Workforce/Payments) Papaya Global Launches Global Workforce Wallet Powered By Fireblocks (PR Newswire)

(Creator Economy) TerraPay Enters Creator Economy With MilX Partnership To Power Global Payouts (The Fintech Times)

(Insurtech) Compare Car Insurance Quotes Using Insurify — Without Leaving ChatGPT (Insurify)

(BNPL) Intuit Partners With Affirm To Provide Pay-Over-Time Offering For QuickBooks Online (Intuit)

(Corporate) Block Lays Off 10% Of Staff As Jack Dorsey Reshapes The Company (Reuters)

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The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

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Fiserv and Affirm are teaming up to bring buy now, pay later directly to standard debit accounts, potentially changing the game for thousands of financial institutions. But the regulatory heat is rising elsewhere as New York picks a fight with the tech world over a new bill that would officially label earned wage access as a loan. We are also tracking Mastercard’s new AI Agent Suite and Nubank’s major move to establish a national bank right here in the U.S.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

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Fiserv and Affirm Join Forces to Bring Flexible Payments to Debit

Fiserv is partnering with Affirm to add installment payment options to standard debit cards. As a major provider of financial technology and payment processing, Fiserv offers the backend infrastructure, while Affirm provides the underwriting and merchant network for these pay-over-time services. This collaboration allows thousands of financial institutions to offer buy now, pay later features through their existing mobile apps without developing the lending technology themselves. Customers can split eligible purchases into fixed payments at nearly 420,000 retailers where their cards are already accepted. The move helps banks keep more transactions within their own ecosystems and encourages users to keep these cards at the top of their wallets. By integrating these features directly into a debit card, banks can offer the predictability of a repayment schedule alongside the simplicity of a checking account. (Affirm)

Toaster’s Take

The U.S. BNPL was in the $100B+ range in 2024-2025. 90MM+ Americans have made purchases with BNPL products. During the holidays of 2025, U.S. shoppers spent $10.1B between early November and Cyber Monday using BNPL. You hear anecdotes (many of them true), of folks using BNPL to finance lunches or dinners. Fintech has done a great job reducing friction in banking and lending, and increasing access to many underserved populations. But, at some point, removing friction goes too far and we wonder whether making it easy for consumers to put a debit transaction on a BNPL plan is something we'll ultimately regret as an industry. We're hoping that this can be a good thing for lenders and consumers (it could be, if executed well), but can't help but worry about how this might pan out.

The Free Toaster Podcast takes the biggest fintech, credit, and payments stories of the week and breaks down what they mean for growth, distribution, and product strategy. If you read the newsletter, this is the conversation behind it.

Listen on Apple Podcasts, Spotify, Substack, or wherever you get your podcasts.

Be sure to check out out our latest pod!

(And if you have a strong opinion on anything in today’s Edition and would like to be on the show - we record at 12pm ET on Feb 5th - let us know!)

New York State Introduces Bill Deeming EWA a Loan

New York lawmakers are picking a fight with the tech world by introducing the STOP Act, a bill that would officially label earned wage access (EWA) as a loan. Senator Samra Brouk and Assemblymember Steven Raga want to treat these paycheck advance apps, which let workers access earned money before payday, as traditional credit subject to the state’s 16% interest rate cap. This means every voluntary tip or subscription fee would be legally classified as a finance charge, a move intended to stop borrowers from getting swept into what Jose Bedoy called an “obfuscated cycle of debt.” While community credit unions are cheering for a more financially just system, the American Fintech Council is firing back, calling the bill an “out of touch” attempt to strip New Yorkers of helpful financial tools. The drama creates a massive patchwork compliance challenge for the industry, especially since federal laws might eventually swoop in to stop states from calling these products loans at all. It turns out, whether you’re a clever delivery driver or a big tech firm, defining what counts as a loan is becoming a very expensive game of semantics. (American Banker)

Whitehouse, Warren, Merkley, Reed Introduce Bill to Empower States to Protect Americans from High Credit Card Interest Rates

Senators Sheldon Whitehouse and Elizabeth Warren just teamed up with a crew of lawmakers to reintroduce a bill that could finally give states the power to cap interest rates on consumer loans. The U.S. Senate is looking to dismantle a 1978 Supreme Court ruling that let big banks ignore local rules as long as they were headquartered in states with zero protections. This move aims to tackle a record $1.23 trillion mountain of credit card debt where average rates are currently climbing to nearly 22 percent. Even though the Federal Reserve Bank of New York reports that families are drowning in these costs, states currently remain powerless to stop out-of-state lenders from charging whatever they want. The bill, dubbed the Empowering States’ Rights to Protect Consumers Act, would level the playing field so local credit unions don't have to compete with astronomically high rates from national giants. If this passes, your home state might actually get to decide if a 35% interest rate is too high or not. (White House)

Santander to Acquire Webster Bank for $12.2 Billion

Banco Santander recently announced a $12.2 billion agreement to acquire Webster Bank, a move that positions the Spanish financial group as a top-ten retail and commercial lender in the U.S. by assets. As a global financial services platform, Banco Santander is folding in a diversified bank with a concentrated deposit base in the Northeast to increase its American scale. The group expects the deal to help reach an 18% return on tangible equity in the U.S. by 2028. This transaction is projected to provide 7 to 8% earnings accretion along with $800 million in annual cost synergies by the end of 2028.

Industry analysis from Stuart Cook on LinkedIn highlights that Webster Bank sold at twice its tangible book value, which represents a 9% premium over its previous all-time high. It is interesting to consider why an $80 billion bank with stable credit and management chose to sell while in a strong position. This might suggest that the board sees a shift in industry math or that the required timeline for tech and AI updates has shortened to a point where standing alone is less viable. While Banco Santander aims for a sub-40% efficiency ratio, other midsize boards have to decide if they possess a sustainable competitive advantage or if recent earnings growth is just a temporary result of a better yield curve. (Santander)

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LendingClub Says 60% of LevelUp Checking Customers Are Also Borrowers

LendingClub definitely found its groove this quarter, proving that being a digital marketplace bank is more than just a fancy title for the online personal loan and banking provider. They posted a sharp increase in activity with loan originations jumping 40% year over year to $2.6 billion, mostly because their new LevelUp products are acting like a magnet for customers. It turns out that 60% of new checking users are also borrowers, and those who finish paying off their loans are sticking around to build a financial cushion in savings. While the company is cruising with a net interest margin that rose to 6%, investors acted a bit grumpy, sending the stock down 7% after hours due to concerns over higher marketing spend. Still, the team is doubling down on growth for 2026, betting that better modeling and more ads will keep the momentum soaring despite the market's jitters. It’s a classic case of spending money to make money, and if the 20% to 30% boost in monthly logins is any indication, customers are actually having some fun with their finances. (PYMNTS)

Experian Acquires Own Up to Expand Mortgage Access and Consumer Home Loans in the Experian Marketplace

Experian, a global data and technology company that provides credit reporting and analytical tools, has entered a definitive agreement to acquire Own Up, an AI-powered mortgage shopping platform. This acquisition integrates expert homebuying guidance and a network of over 40 lenders directly into the Experian marketplace. Because landing an affordable home loan has become increasingly complex for many Americans, this move helps ensure consumers do not overpay for their mortgages. Own Up provides a licensed, tech-enabled service that allows shoppers to receive personalized data and move toward preapproval or a rate lock without leaving the platform. By playing a more direct role in the mortgage journey, Experian reaches consumers during a critical life stage when they feel motivated to act on their financial health. The company aims to act as a financial resource by offering personalized mortgage options alongside its existing suite of credit tools. This deal combines Experian’s data scale with Own Up’s technology to change the homebuying experience for its members. (Business Wire)

Nu Secures Approval to Establish US National Bank

Nu obtained conditional approval from the OCC to establish a national bank in the United States. As a digital financial services platform serving 127 million customers across Brazil, Mexico, and Colombia, Nu (also known as Nubank) aims to export its mobile-only banking model to the American market. Co-founder Cristina Junqueira moved to the U.S. to lead the new entity while Roberto Campos Neto, the former President of the Central Bank of Brazil, joins as Chairman. The company reported $4.2 billion in revenue for Q3 2025, which represents a 39% increase year-over-year. To finalize the charter, Nu must satisfy federal requirements and fully capitalize the bank within the next year. It plans to open the bank within 18 months and has already identified office locations in Miami and San Francisco. While the company is focusing on its existing Latin American hubs, this move signals a major attempt to see if its specific brand of digital banking translates to the U.S. regulatory environment. (Business Wire)

Immigrant-Focused Banking App Seis to Close Down

Seis is officially winding down operations, proving that even strong user engagement cannot always overcome shifting market trends. The San Francisco-based neobanking startup, which provides a Spanish-language banking app and debit cards for U.S. immigrants, announced its closure this week. Despite a "substantial" start where the company opened 500,000 accounts and reached $10 million in annualized revenue in just 16 months, CEO Trevor McKendrick cited changing immigration patterns as the reason for the decline in demand. The company managed a significant feat by reaching $500 million in annual debit card spend, yet the broader environment forced a strategic retreat. Seis will now spend the next few months closing out its business to protect its banking partners and users. McKendrick noted that while running the business was a personal highlight, he is committed to finishing the journey compliance first. (Fintech Futures)

Insigneo Partners with Karta to Launch Premium Charge Card for International Clients

Insigneo, a wealth management firm with $32 billion in supported assets, partnered with fintech company Karta to launch a charge card for high-net-worth individuals with U.S. based assets. Karta operates a premium card platform designed for people who move frequently between countries but keep their holdings in U.S. brokerage or banking institutions. This partnership targets a specific market of international clients who often find standard credit offerings insufficient for their cross-border needs. The card features no foreign transaction fees and includes access to over 1,300 airport lounges. Approved users receive digital access immediately through mobile wallets like Apple Pay and Google Pay. To handle the complexities of international travel, the service provides 24/7 concierge support through WhatsApp. This move allows Insigneo to expand beyond traditional investments and offer a broader range of financial tools for their clients’ daily spending. (Business Wire)

Avelo Taps Cardless for U.S. Airline’s First Next-Gen Loyalty Card

Avelo Airlines, a Houston-based carrier focused on low-cost flights and operational reliability, launched a new World Elite Mastercard in partnership with Cardless. While most major airlines maintain long-standing partnerships with traditional banks, Avelo Airlines is using a digital-first platform to manage its credit card infrastructure. This setup allows the airline to track spending in real time and use data to adjust its rewards programs. Cardless, a financial technology company that builds custom credit card products, provides the backend tech that integrates directly into the airline's app. Avelo Airlines expects this move to drive higher engagement, noting that other cards on this platform saw a "400% year-over-year" increase in transactions. Cardholders receive 5% back in Avelo Cash on flight purchases along with benefits like priority boarding and a free carry-on bag. CEO Andrew Levy suggests that moving away from legacy bank systems allows for more flexibility in how they reward customers. (Avelo)

Turkish Founder on Forbes 2025 List Faces 52 Years in Us for Alleged $7 Million Fraud

Gokce Guven, the 26-year-old founder of Kalder Inc., now faces federal charges for allegedly defrauding investors of $7 million. As a fintech-marketing platform, Kalder Inc. claims to help brands create and monetize rewards programs, but prosecutors say Guven built the business on fabricated financial documents and false partnership claims. She reportedly maintained two sets of books, showing venture capitalists inflated revenue while an outside accounting firm kept an accurate, internal version. Beyond the financial discrepancies, Guven allegedly forged signatures from executives to obtain an O-1A visa, which the government reserves for individuals of extraordinary ability. Despite these allegations, she appeared on the Forbes 30 Under 30 list in early 2025, which reported the company had a $35 million valuation. Guven now faces a potential maximum sentence of over 50 years in prison if convicted on all counts of fraud and identity theft. Her legal case will proceed in the Southern District of New York under Judge Lewis A. Kaplan. (Turkiye Today) (Justice.gov)

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Sources: American Express, LendingClub, SoFi

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Other News We’re Reading

(Cards) Mastercard Launches Agent Suite to Ready Enterprises for a New Era (Mastercard)

(BNPL) Bolt Picks Affirm to Add BNPL Options at Checkout (PYMNTS)

(BNPL) Expedia Group and Affirm Deepen Partnership, With US Exclusivity and Plans For Further Expansion (Business Wire)

(Lending) NEXA Lending Launches Agenetic AI Tools for Loan Officers (HousingWire)

(Lending) Intelligent Lending Partners With Adclear On Ai Compliance (IBS Intelligence)

(Banking) Tech Mahindra and FICO Partner to Accelerate AI-Driven Decisioning and Core Banking Transformation (Tech Mahindra)

(Fintech) Fintech Company Alkami Taps Adviser Explores Sale (Bloomberg)

(Cards) Barclays AAdvantage Cards Are Moving To Citi: What Cardholders Should Know (CNBC)

(Auto Finance) Volvo Car Financial Services and Bank of America Extend Relationship Through 2030 (Bank of America)

(Fintech) Revolut Selects ElevenLabs Agents To Bolster Customer Support (ElevenLabs)

(Banking) Starling Bank Targets US Mid-Tier Lenders In Software Expansion Push (FSTech)

(Banking) Lithic Expands Partner Bank Network with Addition of Stearns Bank (Lithic)

(Payments) Elavon Introduces Payments App Integrated With Microsoft 365 Applications (PYMNTS)

(Payments) Mobile Wallet Usage Soars, Even as Apple Pay Leaves Spend on the Table (PYMNTS)

(Fraud) Equifax Launches Machine-Learning Product That Detects First-Party Fraud (PYMNTS)

(Payments) Nuvei and WEX Partner to Expand Virtual Card Payments for the Global Travel Industry (Nuvei)

(Fintech) Seen Finance™ Partners with Nova Credit to Expand Credit Access by Leveraging Cash Flow Data (Nova Credit)

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Affirm is officially making a play to become its own bank by submitting applications to establish Affirm Bank through a Nevada-chartered Industrial Loan Company (ILC). This strategic shift aims to strengthen and diversify their platform, allowing them to scale operations and offer FDIC-insured products directly to consumers.

OnePay is leveling up its rewards game through a new partnership with the Rakuten Card Linked Offer Network to make saving frictionless. We are also closely tracking a massive wave of earnings reports from heavy hitters like Ally, BofA, Capital One, and JPMorgan, which show record-breaking revenues despite a tightening credit landscape. Other stories we’re watching this week include Credit Karma’s ChatGPT integration, PayPal’s AI-driven acquisition of Cymbio, and the high-stakes political game of big banks weighing 10% interest rate cards.

Lots to break down. Let’s get toasting!

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

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Affirm Submits FDIC Application to Establish Industrial Loan Company

Affirm is officially making a move to become its own bank, submitting applications to federal and Nevada regulators to establish Affirm Bank. This proposed industrial loan company would allow the honest financial products provider, which builds payment networks based on trust and transparency, to scale its operations and offer FDIC-insured products directly. Founder Max Levchin thinks this shift will strengthen and diversify the platform, especially since the company already boasts a track record of extending nearly $130 billion in credit without those pesky late fees. By ditching traditional revolving credit cards for Affirm, the company claims U.S. households could have saved a substantial $18 billion in 2024 alone. To lead this new venture, they’ve tapped John Marion, a veteran with over 25 years of experience from heavy hitters like JPMorgan Chase. This move represents a strategic step toward long-term growth by internalizing operations that previously relied on partner banks. If regulators approve the applications, Affirm plans to leverage the new structure to roll out a broader suite of financial products and services.

Toaster’s Take

By seeking a Nevada-chartered industrial loan company (ILC) license, Affirm executes a strategic playbook recently used by Block to transition from a fintech intermediary into a fully integrated, FDIC-insured financial powerhouse. This specific move already enabled Block to provide over $200 billion in credit and move Cash App Borrow originations entirely in-house. (Affirm)

The Free Toaster Podcast takes the biggest fintech, credit, and payments stories of the week and breaks down what they mean for growth, distribution, and product strategy. If you read the newsletter, this is the conversation behind it.

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OnePay Announces New Rewards Partnership with Rakuten Card Linked Offer Network

OnePay, the all-in-one financial services platform that offers everything from high-yield savings to crypto, just leveled up its rewards game through a new partnership with the Rakuten Card Linked Offer Network. This strategic integration means you’ll soon find Rakuten card-linked deals directly inside the OnePay app, letting you stack savings without the usual headache of hunting for promo codes. You simply link your card, activate as many offers as you want, and watch the value effortlessly roll in while you shop at your favorite merchants. The company aims to drive deeper engagement by embedding these perks into the way you already spend, proving that the best financial tools are the ones that actually make saving fun. Jen Jia, General Manager of OnePay Wallet, thinks rewards work best when they don’t force you to change your behavior, and we couldn’t agree more. Expect these enhanced earning opportunities to hit your app in the coming months as OnePay continues its quest to make your money work harder than you do.

Toaster’s Take

This partnership shows fintech is moving toward a future where your bank acts more like a personal shopper than a vault. By removing the need for manual couponing or scanning QR codes, OnePay is betting that instant recognition and real-time value are the keys to keeping you in their app. (PR Newswire)

Credit Karma’s ChatGPT App Helps Consumers Improve Their Score and Shop For Products

In November of last year, Intuit and OpenAI announced they would partner on a a multi-year, strategic partnership with OpenAI to create the future of Financial Intelligence by bringing together leading platforms to drive the next era of growth with Intuit-powered apps in ChatGPT.

Now, we’re seeing tangible signs of what that looks like for the consumer.

After clicking the Connect button on the top right of the screenshot above, the user is prompted to authenticate into their Credit Karma account (presumably to receive personalized credit score advice and product recommendations).

It will be interesting to see if customers gravitate to this format.

Toaster’s Take

We’re not surprised to see Karma make moves following the November Press Release covering the Intuit Partnership with OpenAI. It’s exciting to see Karma continue to push on the frontiers of technology even as the clear leader in the consumer lending marketplace category.

OnePay Introduces Swipe to Finance, Powered by Klarna

OnePay, an all-in-one financial services platform providing tools like banking and high-yield savings to millions of Americans, just teamed up with global digital bank Klarna to save your bank account from those accidental splurges. The duo announced Swipe to Finance, a new feature that lets users convert recent debit purchases into fixed-term payment plans even after they leave the store. We have all experienced that moment of checkout regret, and this post-purchase flexibility aims to fix the timing of your money without the stress. While Klarna powers the backend of this smarter payment option, users manage everything directly within the OnePay app for a seamless experience. This broad roadmap follows their previous installment-loan partnership, signaling a significant push into flexible retail credit. Whether you overspent on a whim or a bill hit at the wrong time, these transparent payment options make managing your financial life feel a little less like a chore and a lot more like a win. It is a major step for both companies as they expand their reach to frontline workers and gig platforms alike. (PR Newswire)

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Hysteria vs. Reality: The Truth Behind the Auto Finance “Canary in the Coal Mine”

Car Dealership Guy Newsletter provides a deep dive into the auto retail world by breaking down top trends and insights for dealers in under five minutes. While scary headlines suggest an auto lending collapse is imminent, the actual data shows the industry is simply facing a long affordability squeeze rather than a total financial meltdown. Even though subprime delinquencies look undeniably ugly at record levels, prime loans still outnumber them 4:1 and perform in a boring and stable way. This indicates that unless the labor market rolls over, these delinquencies are just symptoms of broader economic inequality instead of a “canary in the coal mine” for a systemic crisis.

Buyers are clearly feeling the pinch as they stretch their budgets, with over 20% of new car purchases now requiring undeniably long 84-month loans just to make payments work. Interestingly, credit availability actually hit its best level since late 2022, signaling that lenders are refining their models for a competitive market rather than a desperate one. You also shouldn’t count on the new federal tax deduction to save the day since its impact on total sales will likely stay marginal at best. While dealers will certainly market the hell out of the deduction, it will likely serve as a patriotic talking point rather than a real closing tool for deals. (Experian) (Cox Automotive) (TaxAct)

PayPal Seeks an AI Edge by Buying E-Commerce Fintech Cymbio

PayPal is making a power move to own the future of shopping by snatching up Cymbio, a Tel Aviv-based fintech that specializes in e-commerce and artificial intelligence tools. By acquiring this 11-year-old firm, the payments giant, which processes billions in transactions as a global digital wallet, is bulking up its ability to connect merchants directly to AI bots. Cymbio’s team will now dive into Store Sync, a tool that ensures a merchant’s product catalog is discoverable when you’re chatting with an AI like ChatGPT or Perplexity. It’s a big win because it gives PayPal control over the product-detail page, which is basically the holy grail for making sure an AI agent actually buys the right pair of shoes for you. While everyone from Visa to Mastercard is racing to figure out agentic commerce, PayPal just took the single largest independent source of product data off the table for its rivals. It’s clear that PayPal isn’t just waiting for the future to happen; they are building the plumbing so that when your AI assistant goes shopping, it’s using their tech to close the deal. This acquisition shows that if you aren’t making your products readable for robots, you’re basically invisible in the next era of the internet. (American Banker)

PayPal Turns to AI to Boost Branded Checkout

PayPal is betting big on agentic commerce to revive its branded checkout business, which currently accounts for about 29% of its total payment volume. The payment fintech recently teamed up with Microsoft to integrate its digital wallet into Copilot, allowing shoppers to find products and pay without ever leaving the AI app. It is a savvy move for the company, which provides digital payment processing and peer-to-peer transfers, especially since its stock has taken a flagging 40% hit over the last year. While the top 10% of earners keep the economy humming, PayPal is banking on the 44% of Americans who are ready to let an AI assistant do their browsing. This shift aims to protect and empower its market share against rivals like Visa, Mastercard, and Stripe who are also rushing into the AI space. Analysts are watching closely, as intensifying competitive pressure means PayPal needs this partnership to deliver more than just a cool demo. If they can make spending money as effortless as chatting with a bot, they might just find that sustainable fun in their bottom line again. (American Banker)

ChatGPT Checkouts to Take 4% Cut of Shopify Merchant Sales

Shopify, the commerce platform that helps millions of businesses sell products online and in person, is letting AI chatbots handle the shopping cart starting this month. While shoppers can soon buy gear directly through Google Gemini and Microsoft Copilot for free, OpenAI plans to take a 4% cut of sales made through the ChatGPT checkout feature. Shopify merchants must opt in if they want to pay that extra fee, though their products will appear in AI responses by default across all platforms. This rollout follows a data-sharing setup that allows these AI apps to pull product details directly from the digital storefronts. Most sellers will see their inventory go live in these AI apps beginning January 26, marking a big shift in how we might discover our next favorite pair of shoes. If a merchant finds this new world of bot-driven commerce a bit too unusual or expensive, they can toggle individual platforms off or block web crawlers to keep their listings private. It’s a bold bet that consumers actually want to shop while they chat, turning OpenAI and its peers into the newest digital storefronts on the block. (The Information)

AFC Slams Profit-Driven State Mandate Proposals for EWA, Warning of Serious Privacy Risks

The American Fintech Council (AFC), a premier industry association representing responsible fintechs and innovative banks, is sounding the alarm on some harmful state database mandates. They just released a white paper slamming proposals that would force Earned Wage Access (EWA) providers to hand over sensitive info to outdated systems meant for payday loans. AFC argues that these profit-driven mandates by a single vendor, Catalis, create serious privacy risks and do absolutely nothing to help workers. It feels like a classic case of trying to fit a square peg in a round hole, especially since EWA isn’t even a loan, it’s just people getting their own money early. The council points out that these overwhelming deficiencies in current databases lead to higher consumer costs and technical glitches rather than real protection. We should probably ask if regulators are actually having fun yet, or if they’re just stuck in a conflict of interest loop that wastes taxpayer dollars. Instead of helping, these rules might just jeopardize consumer privacy and stifle the very tools that give underserved folks a financial leg up. (American Fintech Council)

Big Banks Play Ball: BofA and Citi Weigh 10% Cards to Score Points with Trump

Bank of America, the retail banking giant that provides everything from checking accounts to investment management, is weighing the launch of new credit cards with a 10% interest rate to play ball with President Trump’s recent demands. Citigroup, another massive global lender known for its diverse financial services, is also reportedly considering these low-rate cards as a potential workaround to a broader interest rate cap. Trump recently asked Congress to green-light a one-year cap, sparking some serious backlash from industry groups who fear it will curb economic growth. While banking execs warn that such a move might force them to restrict access to credit, some experts think these highly profitable cards actually have plenty of room for lower rates. To keep things moving, lenders might just roll out no-frills cards that hit the 10% mark but ditch the usual fancy perks and benefits. It’s a bit of a high-stakes game of chicken, especially since credit cards serve as a strong profit engine that usually offsets the higher risk of unsecured lending. Whether this becomes a reality or just a political compromise remains the big question for your wallet. (Reuters)

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Growth Tracker: Earnings and New Investments

Record 15.5 million consumer auto applications powered Ally Financial to a $7.9B full-year revenue performance , anchored by a $43.7B origination volume. Fourth-quarter Adjusted EPS reached $1.09 on $386M in pre-tax income , as a 3.48% NIM—up 18 bps YoY—reflected disciplined deposit pricing and balance sheet optimization. The firm's strategy remains its massive retail deposit base, which grew to $143.5B across 3.5M customers , maintaining a 92% FDIC-insured profile. Credit quality stayed resilient with retail auto net charge-offs falling to 2.14% , down 20 bps YoY , while the Corporate Finance wing maintained a stellar 29% ROE. CEO Michael Rhodes emphasized that strategic pivots, including the sale of the Credit Card business and a $2B share repurchase authorization , have fortified the balance sheet for a more neutral rate risk position heading into 2026. (Ally Financial)

Bank of America capped a banner year with 4Q25 net income surging 12% to $7.6B, fueling a YoY EPS spike of 18% to $0.98. Revenue climbed 7% to $28.4B, powered by a 10% jump in net interest income to $15.8B as fixed-rate assets repriced amid resilient loan and deposit growth. The efficiency ratio improved 194 bps to 61% despite a 4% rise in expenses for technology and people. Asset quality remained a primary differentiator, with provisions for credit losses falling to $1.3B while average deposits hit a record $2.01T. Within the segments, Global Wealth saw a 10% revenue lift on surging asset management fees, and Equities trading revenue soared 23%. CEO Brian Moynihan remains bullish on a resilient U.S. economy, citing positive operating leverage as the key driver for 2026 momentum. (Bank of America)

Capital One capped off 2025 with a significant strategic pivot, announcing a $5.15 billion acquisition of Brex Inc. while reporting fourth quarter net income of $2.1 billion or $3.26 per share. While Q4 revenue ticked up 1% to $15.6 billion, adjusted EPS reached $3.86 after accounting for Discover integration costs and a home loan portfolio sale. The full year story showed massive scale with revenue surging 37% to $53.4 billion, though profitability was tempered by an $8.9 billion spike in credit loss provisions. CEO Richard Fairbank cited solid top line growth and strong and stable credit performance as the foundation for the firm’s long-term returns. Despite a 10 bps dip in net interest margin to 8.26%, the company maintained a robust 14.3% CET1 capital ratio and grew its Domestic Card loan book by 3% to $262.4 billion. (Capital One)

Record $85.2B in full-year revenue fueled Citigroup's significant 2025 progress as Jane Fraser drove positive operating leverage across all five core businesses. Fourth-quarter reported revenue rose 2% to $19.9B, though results were dampened by a $1.1B after-tax loss related to the planned sale of AO Citibank in Russia. Excluding this notable item, quarterly revenue climbed 8% while EPS reached $1.81, outperforming the reported $1.19. The Services segment acted as the quarter's profit engine, surging 15% to $5.9B behind deeper client mandates and a 24% increase in assets under custody. Despite a 6% rise in expenses to $13.8B due to technology investments, the firm returned $17.6B to shareholders through buybacks and dividends throughout 2025. Fraser enters 2026 with visible momentum, targeting a 10-11% ROTCE as the bank pivots toward improved long-term returns. (Citigroup)

Experian clocked a 10% constant currency revenue jump for Q3 FY26, fueled by a 12% increase at actual exchange rates and a resilient 8% organic expansion that met internal targets. While North America maintained its role as the primary engine with 10% organic growth, Latin America stole the spotlight as Consumer Services revenue there surged 23% after reaching a landmark 100 million free members in Brazil. CEO Brian Cassin highlighted the firm's ability to leverage proprietary data and AI opportunities like the Patient Access Curator to offset softer economic activity in the UK and Ireland, where B2B organic revenue remained flat. Strategic acquisitions including ClearSale and KYC360 further bolstered the portfolio, contributing to a 15% total growth rate in Latin America. With momentum holding steady across its Financial Services and Verticals segments, management reiterated its full-year outlook as the company heads toward its May year-end results. (Experian)

JPMorgan Chase capped off 2025 with a powerhouse fourth quarter, delivering $46.8B in managed revenue—a 7% YoY increase—even as a massive $2.2B credit reserve build for the Apple Card portfolio transition pulled reported net income down 7% to $13.0B. Excluding this significant item, net income reached $14.7B or $5.23 EPS. Performance was bolstered by a 17% surge in Markets revenue, particularly a 40% leap in Equity Markets, while Asset & Wealth Management hit record revenue of $6.5B on the back of $553B in annual net inflows. CEO Jamie Dimon highlighted the resilience of the U.S. economy and the firm's selective deployment of excess capital into high-growth opportunities like the Apple Card, though he cautioned that markets may be underestimating geopolitical risks and sticky inflation. The firm maintained a fortress balance sheet with a 14.5% CET1 ratio and a 20% full-year ROTCE. (JPMorgan Chase)

Synchrony Financial defied a tightening credit landscape, reporting a 4% surge in net interest income to $4.8B as strategic pricing and policy changes boosted loan yields. Despite a 3% dip in net earnings to $751M, diluted EPS climbed 7% YoY to $2.04, aided by $952M in aggressive share repurchases. The profit engine remained resilient with a net interest margin expansion of 82 bps to 15.83%, even as a $51M after-tax restructuring charge for early employee retirements pressured efficiency. Credit quality served as the quarter’s differentiator; net charge-offs plunged 108 bps to 5.37%, returning the portfolio to target ranges. CEO Brian Doubles signaled momentum for 2026, highlighting over 20 million new accounts and $182B in annual purchase volume as evidence of the company's deepening role at the center of American commerce. (Synchrony Financial)

Propelled by the removal of its long-standing asset cap, Wells Fargo delivered a robust fourth quarter with net income rising to $5.4B, or $1.62 per diluted share. Total revenue climbed 4% YoY to $21.3B, fueled by a 16% surge in Wealth and Investment Management interest income and a 14% jump in investment banking fees. While net interest income saw a slight 4% lift to $12.3B, the bank successfully managed expenses, which decreased 1% to $13.7B despite a $612M severance charge. Credit quality remained a focal point as net charge-offs declined 13% YoY, though the consumer charge-off rate ticked up to 0.75%. CEO Charlie Scharf emphasized a new medium-term ROTCE target of 17-18%, noting the company returned $23B to shareholders in 2025 through dividends and aggressive stock repurchases. (Wells Fargo)

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Other News We’re Reading

(Lending) The Atlantic Federal Credit Union Becomes First Credit Union to Go Live with MANTL Loan Origination (PR Newswire)

(Lending) Rize Credit Union Partners with Upstart to Expand Access to Personal Loans in California (Upstart)

(Banking) Grow Financial Credit Union Chooses MANTL to Elevate the Member Experience (PR Newswire)

(Cards) Trump credit card plan would be a ‘disaster’, JP Morgan boss warns (BBC)

(M&A) Heartland Credit Union and Novation Credit Union Announce Intent to Merge (Heartland CU)

(Lending) Wonder Partners with FormPiper and LendingClub to Bring Enterprise-Grade Financing to Independent Furniture Retailers (GlobeNewswire)

(Fintech) Treasury Prime Adds Two Institutions to Industry-Leading Bank Network, Accelerating Embedded Finance Growth (Treasury Prime)

(Fintech) Credit Key lands $90m in growth capital and partnership with Barings (FinTech Futures)

(Cards) MEXC Partners with ether.fi to Expand Ecosystem Utility with a Co-Branded Card (MEXC)

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Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Fintel Connect.

This week, Block is demonstrating how first-party data can outperform traditional credit scoring, successfully underwriting subprime borrowers with a 97% repayment rate by leveraging real-time cash flow over FICO scores. While Block expands its lending footprint, the broader banking industry is navigating a proposed 10% interest rate cap that threatens a $160 billion revenue stream, and OpenAI is making its first move into in-chat advertising to manage rising costs. Between PayPal’s new DIY tax integration and a 27% jump in global fintech funding, the theme of 2026 is clear: distribution and data are redefining the competitive landscape.

We hope you enjoy this week’s news roundup at the intersection of consumer lending and marketing.

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

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Cash App’s “Invisible” $200 Billion Loan Machine

While the market has been fixated on Block’s (down) stock price, the fintech giant has quietly built a massive consumer lending empire right under the noses of big banks. Block announced that it has surpassed $200 billion in credit extended across its ecosystem—including Cash App Borrow, Afterpay, and Square Loans—validating a model that bypasses traditional credit scoring entirely.

The Signal: This isn’t just about volume; it is a victory for first-party distribution. You won’t find Cash App Borrow on marketplaces like Credit Karma or LendingTree. Block didn’t need to buy these leads; they simply leveraged the millions of users already opening their app every day. By analyzing real-time cash flow data (like direct deposits and spending velocity) rather than relying on delayed FICO scores, Block is successfully underwriting customers that legacy banks deem “un-lendable.”

Why It Matters

The Balance Sheet Shift: The success of this data-driven underwriting has given Block the confidence to change its economics. Instead of just renting bank rails, they are increasingly originating loans through their in-house bank, Square Financial Services. This move to hold more risk on their own balance sheet signals that they view these “subprime” borrowers as a stable, profitable asset class—not just a feature to boost engagement.

Data Beats Dogma: Traditional lenders use credit scores to filter people out; Block uses transaction data to filter people in. The result? They are approving 38% more loans than traditional models would allow, without seeing a spike in defaults.

Gen Z’s “Credit Card”: With nearly half of Gen Z avoiding credit cards, Block’s short-term, fixed-fee structure is becoming the primary liquidity tool for the next generation.

By The Numbers:

70% of Cash App Borrow customers have credit scores below 580, yet the product maintains a 97% repayment rate.

58% of their small business loans went to women-owned businesses, highlighting the gap left by traditional commercial lending.

$20B+ has been originated directly by Square Financial Services since its inception, a number that is accelerating as they move more volume in-house.

(Block) (Quarterly Earnings Reports)

The Free Toaster Podcast takes the biggest fintech, credit, and payments stories of the week and breaks down what they mean for growth, distribution, and product strategy. If you read the newsletter, this is the conversation behind it.

Listen on Apple Podcasts, Spotify, Substack, or wherever you get your podcasts.

Be sure to check out out our latest pod!

Why Banks Are So Worried About a 10% Credit Card Rate Cap

JPMorgan Chase, the nation’s largest credit card lender, and its fellow banks are in a total "tizzy" after President Trump called for a 10% cap on credit card interest rates. This proposed one-year limit targets a "major profit source" for card issuers who raked in a "substantial" $160 billion from interest fees in 2024 alone. While the news caused stocks for companies like Citi and Capital One to tumble, experts say the plan faces a "significant" uphill battle without a nod from Congress. Industry heavyweights warn that such a "massive" shift would force them to slash credit lines. This could potentially hurt the very consumers the policy aims to help. Even with the President’s January 20 target date looming, most analysts believe these worries might be "overblown" since no official legislation has actually moved forward. It looks like the banks are bracing for a "heavy blow" to their bottom lines, but for now, those high-interest balances aren't going anywhere. (NY Times)

Nice Try Bilt, Devil is Always in the Details

Investor Rex Salisbury at Cambrian, a fintech founder community and venture fund, calls out the gap between the "headline" news and the messy reality of proposed rate caps. He points out that even cards claiming a "10% cap" often retain the right to snap back to much higher variable rates, which feels like a potential trap for consumers. This insight explains exactly why banks are so nervous to see their card economics dragged into the political spotlight. The debate forces issuers to publicly defend how they price risk and explain why their disclosures are so complex. Even if the proposal dies, the "scrutiny" on long-term APR structures isn't going away. It seems the industry now has to prove their math makes sense before the politicians do it for them.

OpenAI Brings Ads To ChatGPT As Costs Mount

OpenAI just decided to invite some uninvited guests to the chat: advertisers. The AI research lab, which develops the ubiquitous ChatGPT chatbot, is rolling out ads at the bottom of responses for free users and those on the new "Go" tier to help offset "mounting" financial pressure. While CEO Sam Altman once called the idea of mixing ads with AI "uniquely unsettling," a projected $14 billion loss by 2026 makes for a very effective mind-changer. The company is currently "burning through" cash to build out a massive $1.4 trillion infrastructure, so they’re betting you won’t mind a sponsored link while you’re asking for a lasagna recipe. They promise ads won't influence the actual answers, but with a potential IPO looming, the pressure to turn a profit is definitely "soaring." It turns out even the smartest AI in the room still needs someone to foot the bill. (Forbes)

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Pagaya Launches A Revolving Asset-Backed Funding Structure Backed by Personal Loans with Investment from 26North

Pagaya has launched its first revolving asset-backed securitization backed by personal loans, closing a $350 million PAID 2025-REV1 transaction with investment from affiliates of 26North. The hybrid public-private structure introduces a 24-month revolving period that allows capital to be redeployed as loans repay, effectively creating up to $700 million in total funding capacity over the life of the deal. Designed for insurance capital and asset managers, the structure expands Pagaya’s funding toolkit beyond traditional term ABS and mirrors revolving formats it introduced in point-of-sale lending in 2025. The deal adds long-term, flexible capital to support Pagaya’s expected expansion across personal, auto, and point-of-sale loans in 2026, reinforcing its strategy to diversify funding sources while scaling loan originations through its partner network. (Pagaya)

Durbin, Marshall Reintroduce The Credit Card Competition Act

Senators Dick Durbin and Roger Marshall just reintroduced the Credit Card Competition Act to shake up the “Visa-Mastercard duopoly” that currently controls about 85% of the market. This legislation targets the “exorbitant prices” small businesses face by requiring giant banks with over $100 billion in assets to offer at least two different routing networks for credit card transactions. Currently, these fees cost the average American family nearly $1,200 a year, while big banks rake in $111.2 billion in “swipe fees” annually. By forcing giants like Visa and Mastercard to actually compete for business, the bill aims to “level the playing field” and lower costs for everything from gas to groceries. President Trump even gave the bill an early morning shout-out, adding some serious political fuel to the fire. It’s a classic “Main Street” versus “Big Banks” showdown, and the sponsors are betting that a little healthy competition will finally stop the “ripped off” feeling at the checkout counter (Senate.gov)

PayPal Introduces Free DIY Tax Filing for PayPal Debit Card Customers

PayPal is adding tax filing to its financial ecosystem through a partnership with april, giving U.S. PayPal Debit Card customers a new way to file federal and state taxes directly inside PayPal. The integration lets users complete tax filing in under 20 minutes using april’s AI-powered tax engine, which prefills information from uploaded documents, supports electronic filing with the IRS, and offers chatbot assistance or paid live support. Customers can pay taxes using PayPal Credit, debit, or cashback cards, receive federal refunds up to five days early via direct deposit, and route refunds into PayPal Savings, a high-yield account provided by Synchrony Bank. The move extends PayPal’s strategy of consolidating earning, spending, saving, and now tax filing into a single destination, while april gains distribution inside a major consumer payments platform as it positions embedded tax services as a recurring financial workflow rather than a once-a-year task. (PR Newswire)

Fintech Funding Jumped 27% In 2025 With Fewer Deals But Bigger Check

Global venture funding to fintech startups rebounded in 2025, with total investment reaching $51.8 billion, a 27% increase from 2024, according to Crunchbase. While deal volume fell 23% year over year to 3,457 transactions, the funding increase was driven by fewer but significantly larger late-stage rounds, particularly in crypto, blockchain, and adjacent markets such as prediction platforms. Mega-deals included $2 billion raises by Polymarket and Binance, $1 billion rounds for Kalshi, and large financings for Ramp, Rapyd, and Rippling. Investors describe the environment as a “flight to quality,” with capital concentrating on scaled companies showing clear traction, while early-stage activity remains selective but active in areas like AI and stablecoins. The result is a healthier, more disciplined funding market that sits above pre-pandemic levels, even as it remains well below the highs of 2021 and 2022. (Crunchbase)

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Other News We’re Reading

(Fintech) Revolut to Enable Frictionless Checkout Across All Agentic Commerce Platforms for the UK and EEA (Revolut)

(Regulation) OCC Proposes Clarifying Amendments to National Trust Bank Chartering Rule (Consumer Finance and Fintech Blog)

(Payments) BVNK Powers Stablecoin Payments for Visa Direct (BVNK)

(Partnerships) Suncoast Credit Union Unveils Enhanced Student Loan Program Through Partnership with College Ave (PR Newswire)

(IPO) Brazilian Fintech Agibank Files for US IPO (Reuters)

(Crypto) K33 Launches Lending with Crypto‑Backed Collateral and Deploys Its Own Bitcoin Treasury (Kaupr)

(Trading) NYSE-Parent Intercontinental Exchange Develops Platform for 24/7 Tokenized Securities Trading (Reuters)

(Partnerships) Audi Revolut F1 Team Welcomes Nexo as Official Digital Asset Partner (Nexo)

(Banking) Klarna Expands Digital Bank Offer with Peer-to-Peer Payments (Klarna)

(Banking) Inter Gains Federal Reserve Approval to Establish U.S. Banking Branch (GlobeNewswire)

(M&A) Coastal Financial Buys ‘Climate-Friendly’ Fintech GreenFi (Banking Dive)

(Partnerships) Stripe Helps Power a New Shopping Experience in Microsoft Copilot (Stripe)

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Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

This week starts with SMBC winding down Jenius Bank, ending its U.S. digital consumer banking push just two and a half years after launch. Despite strong early deposit growth, the business never aligned with the profitability timeline its parent expected, reinforcing the broader pullback from bank-led, digital-only consumer models. Elsewhere, Fanatics is preparing to launch a credit card tied to merchandise, tickets, and betting, while Walmart-backed OnePay quietly crossed a $4 billion valuation, underscoring how embedded retail distribution can drive fintech scale without a new funding round.

Also, MyPoint Credit Union is using Upstart to expand personal lending beyond its traditional footprint, while DailyPay secured new capital to support earned wage access as a retention lever for employers. International players like bunq and Checkout.com are moving forward with concrete steps to deepen their U.S. presence.

We hope you enjoy this week’s news roundup at the intersection of consumer lending and marketing.

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

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With a single call to our simple, dev-friendly APIs, Spinwheel offers the only comprehensive connection to your consumers’ financial accounts.

Spinwheel delivers PII, real-time, verified account data, and the ability to make payments across all major debt categories – all within your brand’s experience.

With many happy customers, including:

SMBC to Wind Down Jenius Bank, Ending Its U.S. Digital Consumer Banking Push

Jenius Bank, the U.S. digital banking unit backed by Japan’s Sumitomo Mitsui Banking Corp., is winding down operations, according to regulatory filings and confirmation from its parent. The move will impact roughly 160 to 170 employees, with layoffs expected to take effect around March 10 following the required notice period. The wind down includes suspending new account openings and new loan originations, effectively ending Jenius Bank’s U.S. consumer business.

The closure did not come out of nowhere. Our own Carlos Caro flagged the risk and broke the news as early signals emerged, well before the formal filings surfaced.

Jenius Bank launched in 2023 as a digital only division of SMBC Manubank, targeting U.S. consumers with personal loans and later high yield savings accounts. Built as a cloud native, branchless operation, the bank was positioned as a long-term effort to establish a full service consumer banking presence in the U.S., with plans to expand into checking accounts, credit cards, and additional lending products. Jenius surpassed $1 billion in deposits within six months and originated hundreds of millions of dollars in loans.

Despite that growth, profitability remained elusive. According to employee accounts and public disclosures referenced in the filings, the decision to shut down was driven largely by financial performance and extended profitability timelines. Jenius had not reached break even and was not expected to do so as quickly as its parent anticipated. SMBC Manubank reported losses exceeding $38 million in early 2024, largely tied to staffing, technology, and the cost of operating a standalone digital bank. (American Banker) (Banking Drive)

We’ll keep our eye on this one and dig to see if there’s more to the story than what’s being shared in the headlines.

Fanatics CEO Targets $50 Billion In Sales, Announces Credit Card Launch

Fanatics plans to launch a branded credit card later this spring as part of a broader push to deepen its relationship with sports fans, according to comments from CEO Michael Rubin at the National Retail Federation’s Big Show in New York. Rubin said the card will be integrated across the Fanatics ecosystem, with rewards tied to merchandise, event tickets, and sports betting, positioning it as a loyalty-driven product rather than a standalone financial offering. The move comes as Fanatics targets long-term growth and projects its revenue could reach $30 billion to $50 billion within the next decade.

Fanatics is currently valued at roughly $13 billion and operates across licensed sports merchandise, trading cards, and online sports betting. The company generates the majority of its revenue through direct-to-consumer channels and has expanded through acquisitions and partnerships, including ownership of the Lids retail chain and official online stores for major sports leagues. The planned credit card adds another layer to Fanatics’ strategy of linking commerce, media, and gaming into a single platform built around fan engagement, even as the company says it feels no pressure to pursue an initial public offering in the near term. (Forbes)

Walmart-Backed ‘Super App’ OnePay Hits $4 Billion Valuation

Walmart-backed fintech OnePay has reached a valuation of more than $4 billion following a recent employee share repurchase, according to people familiar with the matter. The valuation marks a sharp increase from the roughly $2.5 billion level OnePay reached in 2024 after a $300 million funding round led by Walmart and Ribbit Capital. The company, formally known as One Finance Inc., declined to comment on the latest valuation, which reflects internal transactions rather than a new external raise. We have covered OnePay’s trajectory before, including how its exclusive distribution partnership with Walmart has fueled rapid scale and product expansion.

OnePay was formed through the merger of two smaller fintech firms with the goal of building an all-in-one financial app, and it has grown quickly by embedding itself inside Walmart’s ecosystem. The app now counts more than 3 million monthly active users and has expanded well beyond basic banking into credit cards, buy now pay later, investing, and cryptocurrency trading.

More recently, OnePay has positioned itself within emerging agentic commerce infrastructure, joining Google’s Agent Payments Protocol as Walmart continues to more tightly integrate financial services, payments, and artificial intelligence into its core retail experience. (Bloomberg)

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MyPoint Credit Union Selects Upstart for Personal Lending

MyPoint Credit Union has partnered with Upstart to expand its personal lending offerings, using Upstart’s AI-powered platform to reach borrowers beyond its traditional channels. The San Diego-based credit union began lending through the Upstart Referral Network in September 2025, allowing qualified applicants on Upstart.com to receive MyPoint-branded loan offers and complete the application and closing process digitally. According to MyPoint, the partnership is intended to support growth while delivering a faster, more streamlined borrowing experience for members and new customers across the region. (Upstart)

DailyPay Announces New $195 Million Senior Secured Revolving Credit Facility

EWA provider DailyPay has closed a new $195 million senior secured revolving credit facility, strengthening its capital position and adding flexibility to support long-term growth. The facility, which closed on December 30, 2025, is led by JPMorgan Chase Bank as administrative agent and sole bookrunner. DailyPay said the financing will support continued investment in its on-demand pay and financial wellness platform as employers increasingly look to earned wage access as a tool for employee retention and engagement. (DailyPay)

bunq Files For U.S. Banking License

European neobank bunq has filed for a U.S. de novo banking license with the Office of the Comptroller of the Currency, moving closer to a full launch in the American market. The filing follows the company’s recent approval as a U.S. broker-dealer and reflects its strategy to serve digital nomads and globally mobile customers who split their lives between Europe and the U.S., offering features such as cross-border accounts, credit-building tied to European financial histories, and AI-driven fraud detection. bunq said it plans to begin in U.S. metropolitan areas with large expat populations, building on its existing footprint across more than 30 European markets and a user base that recently surpassed 20 million. (bunq)

Checkout.com Secures Approval For Georgia Bank Charter, Accelerating US Expansion

Payments provider Checkout.com has received approval for a Merchant Acquirer Limited Purpose Bank charter from the Georgia Department of Banking and Finance, clearing a key regulatory step toward operating as its own acquirer in the U.S. The charter positions the company to pursue direct U.S. card network integration and begin charter banking operations in 2026, a move Checkout.com said will support faster product development, improved acceptance rates, and greater control over payment performance for enterprise merchants. The approval comes as U.S. volumes grew nearly 70% in 2025, making North America the company’s fastest-growing revenue region, with Atlanta set to serve as a central hub alongside existing offices in New York and San Francisco. (Checkout.com)

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Other News We’re Reading

(Industry News) Capital One, Amex Shares Sink on Trump’s Credit-Card Threat (Bloomberg)

(Commerce) New Tech and Tools for Retailers to Succeed in an Agentic Shopping Era (Google)

(Cards) Banks Balk as Trump Pushes for 1-Year, 10% Cap on Credit Card Interest Rates (PBS)

(Commerce) FIS Launches Industry-First Offering Enabling Banks to Lead and Scale in Agentic Commerce (FIS Global)

(Commerce) Microsoft Propels Retail Forward With Agentic AI Capabilities That Power Intelligent Automation for Every Retail Function (Microsoft)

(Banking) Magnifi Financial Partners with Greenlight(R) to Help Parents Raise Financially Smart Kids and Teens (Newswire)

(Banking) CU*SOUTH Partners with Posh to Bring Responsible, Human-Like AI to Credit Unions (Posh)

(Payments) Modulr Expands to U.S. with FIS Partnership to Power Real-Time Payments for Banks (Modulr)

(Crypto) Wyoming Launches First State-Backed Stablecoin on Solana Blockchain (CoinMarketCap)

(Cards) Explainer: How Trump’s Proposed Cap on Credit Card Rates Could Reshape Consumer Lending (Reuters)

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Happy New Year!

Catch you next week,

The Free Toaster Team

P.S.: If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. The Free Toaster will be organizing & hosting curated events this year, and we’d love to work with you as a sponsor.

Hey Toaster Readers,

This week is sponsored by our friends at Fintel Connect.

The calendar just flipped, and the news cycle is moving a little slower than usual. Even so, a few developments this week offer a clear view into how consumer finance is changing at the start of 2026.

At the center is JPMorgan Chase’s agreement to take over the Apple Card program, ending Goldman Sachs’s role in one of the largest co-branded card portfolios in the U.S. The deal brings real numbers into focus, including a discounted transfer of roughly $20 billion in balances, and highlights how scale, underwriting discipline, and balance-sheet capacity are shaping who is willing to hold large card portfolios tied to premium brands and elevated credit risk.

From there, Bilt shared new details on its Card 2.0 rollout, outlining a tiered card lineup and a reworked issuing and servicing structure ahead of its February launch. At the same time, private credit firms continue to move in the opposite direction of banks, expanding into cards and BNPL as traditional lenders slow growth and reprice risk. We also look at how AI is moving further into lending and payments, from underwriting automation to Mastercard and Fiserv advancing agentic commerce, alongside updates on PicPay’s IPO filing, holiday spending data, and other notable shifts across credit and payments.

Happy New Year, and welcome to the first issue of 2026.

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

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JPMorgan Chase (Finally) Reaches Deal to Take Over Apple Card Program

According to the WSJ, JPMorgan Chase has (finally) reached a deal to become the new issuer of the Apple Card, replacing Goldman Sachs in one of the largest co-branded credit-card programs in the U.S., according to people familiar with the matter. JPMorgan will issue Apple credit cards for both new and existing cardholders, assuming a portfolio with approximately $20 billion in outstanding balances.

As part of the transaction, Goldman Sachs is expected to sell the Apple Card balances at a discount of more than $1 billion, an uncommon outcome for a major co-brand program. The discount reflects the portfolio’s higher exposure to subprime borrowers and a delinquency rate that has exceeded the industry average. These factors slowed negotiations and contributed to limited interest from other potential issuers that previously evaluated the program.

The deal also includes changes to Apple’s savings offering. JPMorgan plans to launch a new Apple-branded savings account, while customers with existing Apple savings accounts at Goldman will be able to choose whether to remain there or move to JPMorgan. Goldman, which continues to operate its Marcus platform, may retain some deposits even after the card portfolio transfers. For Goldman Sachs, the transaction represents the final step in exiting consumer lending, following more than $7 billion in pretax losses tied to that business since 2020. (Wall Street Journal)

New Details Emerge About Bilt Card 2.0 Program

Bilt has shared new details about the Bilt Card 2.0, its next-generation credit card program set to launch in early 2026. The company plans to introduce three new card options on January 14, with annual fees of $0, $95, and $495. Applications for the Wells Fargo–issued Bilt Mastercard have ended, and the current card will retire on February 6, 2026, though Bilt memberships, points balances, and access to Bilt services will remain unchanged.

Existing cardholders will be able to upgrade to one of the new cards without a hard credit inquiry and will keep their current card numbers, autopay settings, and digital wallet connections. The new cards will be issued by Column N.A. and serviced by Cardless. Bilt also said Card 2.0 will expand rewards eligibility to include certain residential mortgage payments. Customers who do not upgrade will have their accounts converted to Wells Fargo Autograph cards, which earn Wells Fargo Rewards rather than Bilt Points. As previously reported, this transition builds on Bilt’s earlier decision to end its Wells Fargo partnership after reaching an $11 billion valuation, which we covered in detail in a prior Free Toaster story. (Bilt Rewards)

Private Credit Firms Pile Into Consumer Debt as Risk-taking Mounts

Private credit firms sharply expanded their exposure to consumer debt in 2025, moving aggressively into credit cards and buy now, pay later. According to the data, private credit purchases and forward-flow agreements tied to consumer loans jumped to about $136 billion in 2025, up from roughly $10 billion in 2024 and only a few billion dollars in 2023. Large managers including KKR, Blue Owl, and Sixth Street are driving the shift as banks remain cautious on unsecured lending.

The data above shows outstanding credit card and revolving balances at U.S. banks rising steadily from 2020 through 2024, then flattening and dipping slightly in 2025 to just above $1 trillion. Analysts cited in the report note that banks have slowed credit card growth as delinquencies rise in auto loans and student debt, creating space for private capital to step in where regulated lenders are pulling back.

Affirm has used forward-flow agreements and loan sales to firms including Sixth Street, Prudential, and New York Life to fund growth. Private credit managers are also expanding into asset-based finance across consumer products, while new specialists such as Fidem Financial have accumulated about $15 billion in credit card receivables and launched co-branded card platforms in partnership with Blue Owl. Supporters point to strong historical returns in card lending, including a recent 35% annualized return on equity reported by JPMorgan Chase’s card unit, even as others caution that capital requirements and late-cycle risks are pushing more unsecured credit outside the traditional banking system. (Financial Times)

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GHS Federal Credit Union selects Scienaptic AI to Enable Smarter Lending

Scienaptic AI said GHS Federal Credit Union has selected its AI-powered credit decisioning platform to automate underwriting, speed loan approvals, and expand access to credit across its lending portfolio. The Binghamton-based credit union plans to use the platform to assess member creditworthiness using a broader range of data as borrower profiles and lending complexity increase. Founded in 2014, Scienaptic AI supports more than 150 lenders and processes over 3 million credit decisions each month, applying machine learning with built-in risk and fair lending monitoring to help financial institutions scale lending without increasing portfolio risk. (Business Wire)

Fiserv and Mastercard Partner to Advance Trusted Agentic Commerce For Merchants

Fiserv and Mastercard said they are expanding their partnership to support agentic commerce for merchants, with Fiserv set to deploy Mastercard’s Agent Pay Acceptance Framework at scale. As part of the integration, Fiserv will act as a network token requestor using Mastercard’s Secure Card on File capabilities, enabling AI agents to transact on behalf of consumers with tokenization, authentication, fraud controls, and governance built in. The companies said the framework is designed to help merchants participate in AI-driven payments while maintaining control over customer relationships, improving transaction security, and supporting new commerce models tied to automated and programmable payments. (Fiserv)

Brazil FinTech PicPay Files for US IPO as Profits Surge

PicPay has filed for a U.S. initial public offering, positioning itself as one of the most significant Brazil-linked fintech listings since Nubank’s debut and renewing attention on how Pix continues to reshape payments in Brazil. The Amsterdam-incorporated company reported net income of 270.4 million reais on revenue of 7.26 billion reais for the nine months ended Sept. 30, up from 150.8 million reais on revenue of 3.78 billion reais a year earlier, reflecting a sharp improvement in profitability. Bloomberg reported that Bicycle, a fund led by former SoftBank executives including Marcelo Claure, plans to invest up to $75 million in the offering, with PicPay targeting a Nasdaq Global Select Market listing under the symbol PICS and Citigroup, Bank of America, and Royal Bank of Canada leading the deal. (PYMNTS)

Cobalt Credit Union Deploys Eltropy AI Voice, Achieving 83% Session Containment Rate

Cobalt Credit Union said it has deployed Eltropy’s AI Voice solution, reporting an 83% session containment rate as the system handles routine member inquiries without live staff involvement. The credit union, which serves military members and their families nationwide, rolled out AI Voice as part of a phased automation strategy that began with video, chat, and text channels, and now provides 24/7 voice support integrated with its DNA core system. Cobalt said the AI assistant manages common tasks such as balance checks and transfers while reducing abandonment rates and allowing contact center staff to focus on more complex member needs. (Herald Mail Media)

U.S. Holiday Retail Sales Rise 3.9% as Online Spending Outpaces Stores

Mastercard said U.S. holiday retail sales excluding automotive rose 3.9% year over year from Nov. 1 through Dec. 21, according to preliminary data from Mastercard SpendingPulse, reflecting stronger e-commerce and steady in-store demand. Online sales increased 7.4% while in-store sales grew 2.9%, pointing to continued omnichannel shopping behavior, with apparel spending up 7.8%, restaurant sales rising 5.2%, and jewelry up 1.6%. The data shows consumers shopping earlier, using promotions, and balancing goods with experiences, as retailers leaned on digital channels and operational efficiency to meet demand during the 2025 holiday season. (Mastercard)

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Other News We’re Reading

(Financial Planning) Survey: Men More Financially Confident in the New Year (NerdWallet)

(Open Banking) Flutterwave Expands Payments Infrastructure With Acquisition of Open Banking Firm Mono (PR Newswire)

(AI/Lending) How AI is helping Dallas-based Yendo bridge the gap of financial inequality (The Dallas Morning News)

(Legal/Fintech) Mayor Brandon M. Scott Announces Baltimore City’s Lawsuit Against Dave, Inc. For Unfair and Deceptive Practices (Baltimore City)

(Security) Marquis breach toll rises to 80 banks, 824,000 consumers (American Banker)

(Advertising/Payments) PayPal Leverages Massive Data Trove to Challenge Advertising Giants (PYMNTS)

(E-commerce/AI) Who Controls Checkout? Price.com Pushes AI From Recommendation to Execution (PYMNTS)

(Lending/AI) Pluto debuts AI-driven lending platform for private assets (Fintech Global)

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https://www.thefreetoaster.com/p/apple-cards-next-chapter-starts-at

Happy New Year!

Catch you next week,

The Free Toaster Team

p.s. If you’re working on anything new in acquisition or credit, we’re always curious to hear about it.

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

This week starts with Imprint, which just crossed the unicorn mark as brands take more control over credit and loyalty. As legacy bank tech continues to slow product launches and limit customization, Imprint is showing why a full-stack approach to co-brand cards is gaining traction with large retailers and consumer brands.

From there, the issue moves through how distribution and regulation are shifting at the same time. Visa and Mastercard are scaling mobile wallets through global partnerships as NFC access opens up in Europe. Klarna is dealing with investor scrutiny following its IPO as credit losses rise. The Fed is asking whether a limited “skinny” master account could bring more nonbanks into the payments system without expanding risk. The CFPB is walking back its stance on earned wage access, giving providers more room to operate. And Amazon is pushing Alexa further into bookings and commerce through integrations with Expedia, Yelp, Angi, and Square.

Here’s what’s happening across fintech right now.

— Carlos Caro, Founder at New Market Growth
— Nick Madrid, Co-Founder of The Free Toaster and Uncovered Media

PS: To support us, please ask one colleague to subscribe!

With a single call to our simple, dev-friendly APIs, Spinwheel offers the only comprehensive connection to your consumers’ financial accounts.

Spinwheel delivers PII, real-time, verified account data, and the ability to make payments across all major debt categories – all within your brand’s experience.

With many happy customers, including:

Imprint Raises $150 Million Series D to Transform Co-Brand Cards into a True Loyalty Platform

Imprint has reached a $1.2 billion valuation following a $150 million Series D financing round. The raise was led by Khosla Ventures, with participation from Thrive Capital, Ribbit Capital, and Kleiner Perkins. The company said the funding will support its shift from offering co-branded bank products toward operating as a broader brand loyalty platform. Founded in 2020 and based in New York, Imprint focuses on giving brands more control over customer data and product development timelines compared with traditional bank-issued programs.

Imprint’s platform is built on its proprietary issuing and processing infrastructure, ImprintCore, which is designed to help brands launch customized financial products more quickly than legacy issuers. The company reports that partners using the platform have seen a 200% year-over-year increase in cardholders and an eightfold increase in lifetime value relative to non-cardholders. In retail applications, such as its work with the grocery chain H-E-B, the model supports features like brand-specific rewards and targeted offers, which Imprint says have led to higher wallet share and increased cardholder spending compared with previous programs.

Looking ahead, Imprint plans to expand beyond credit cards into debit products, secured cards, and flexible financing options, while increasing investment in automation and artificial intelligence to improve operational efficiency. Its current partners include Booking.com, Rakuten, and Crate & Barrel. The Series D follows several earlier rounds, including a $75 million Series C in 2023 at a $600 million valuation, a $75 million Series B in 2023 valuing the company at $240 million, a $38 million Series A in 2021 co-led by Kleiner Perkins and Stripe, and an approximately $15 million seed round backed by Affirm and Thrive Capital. (Business Wire)

Fiserv Collaborates with Visa to Accelerate Agentic Commerce

Fiserv announced a strategic collaboration with Visa to support agentic commerce by deploying Visa Intelligent Commerce and the Trusted Agent Protocol across Fiserv’s merchant ecosystem. The partnership is designed to let AI-driven agents securely discover, compare, and complete purchases on behalf of consumers, while giving merchants a way to accept these transactions with authentication, verified consumer intent, and protected payment credentials. Fiserv plans to integrate the protocol into its existing acceptance stack, including platforms used by Clover merchants and ISV and ISO partners.

Beyond transaction acceptance, the two companies are positioning the collaboration as infrastructure for broader intelligent commerce use cases. Fiserv will connect merchants to Visa’s authentication and tokenization services while providing integration tools, secure connectivity, and operational automation such as real-time routing and dispute handling. The effort reflects a broader push by payment networks and processors to define standards for agent-driven transactions before automated commerce scales further across consumer and merchant workflows. (Fiserv)

Mercury Applies for OCC National Bank Charter to Become the Bank for Builders

Mercury has applied for a national bank charter with the Office of the Comptroller of the Currency and submitted an application for FDIC deposit insurance, signaling a shift toward operating as a fully regulated bank. The company reported more than 200,000 customers, $650 million in annualized revenue, and three consecutive years of GAAP profitability at the time of the filing. Mercury said the move reflects its intent to pair its software-led banking platform with direct regulatory oversight, rather than continuing to rely solely on partner banks.

If approved, the charter would allow Mercury to hold deposits and expand its product set under its own license, while maintaining its focus on business banking for startups and small companies. The company also named Jon Auxier, former CFO of SoFi Bank, as Chief Banking Officer and proposed CEO of the future bank, pending regulatory approval. Mercury stated that there would be no immediate changes for customers during the application process, as it continues to operate through existing partner banks while engaging with regulators. (Mercury)

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Klarna Hit With IPO-Related Securities Class Action After 102% Jump in Credit Loss Provisions

Klarna Group is facing a securities class action lawsuit tied to its September 2025 IPO, following a reported 102 percent year-over-year increase in its provision for credit losses. The complaint alleges that Klarna’s IPO disclosures understated credit risk and failed to adequately warn investors about potential increases in loss provisions tied to lending to higher-risk and financially strained consumers. After the company reported its Q3 2025 results on November 18, Klarna shares fell to $31.63, roughly 20 percent below the $40 IPO price, prompting questions about whether material credit deterioration had already emerged before the offering. (PR Newswire)

Inside Klarna’s agentic AI protocol

Klarna has introduced its Agentic Product Protocol, an open standard designed to make merchant product data discoverable and usable by AI-driven shopping agents. The protocol allows agents to access structured information such as product identity, price, availability, and attributes, enabling comparison and purchase decisions across merchants, and is intended to work alongside other emerging agentic commerce standards from companies such as Stripe, OpenAI, and Google. Klarna said the system is built on its existing product graph, which covers more than 100 million products and hundreds of millions of prices, while analysts noted that adoption will depend on merchant participation and whether large retailers allow third-party agents to access their catalogs. (American Banker)

Emboldened Activist Investors Are Circling U.S. Banks

Activist investors are increasingly targeting U.S. banks as regulatory pressure eases and deal activity rebounds, creating openings in a sector that has historically seen limited activism. HoldCo Asset Management has emerged as a visible player, opposing the proposed acquisition of Comerica by Fifth Third Bancorp and pushing for strategic changes at KeyCorp and other lenders, often arguing for asset sales or stock buybacks over expansion. Analysts note that a combination of deregulation under the Trump administration, rising competitive pressure from fintech and private markets, and renewed bank M&A activity has created a more favorable environment for activism, though resistance remains strong given banks’ regulatory roles, local ties, and shareholder structures; even so, data from S&P Global Market Intelligence shows bank deal values reaching their highest levels since 2021, and proxy firms such as Institutional Shareholder Services have acknowledged the growing influence of activist campaigns despite often supporting management-backed transactions. (WSJ)

Chase Sapphire Cardholders Get Extra Shot at FIFA World Cup Tickets

JPMorgan Chase said Chase Sapphire cardholders will receive access to an exclusive FIFA World Cup ticket sale in February 2026 through the Chase Experiences portal, with eligibility extending to Sapphire Reserve, Sapphire Preferred, and Sapphire Reserve for Business cards. The offer runs from February 10 to February 24 and follows similar promotions tied to the U.S.-hosted tournament, including ticket access and themed card designs from Bank of America, as issuers increasingly use large cultural and sports events to drive acquisition. Other recent examples include travel and entertainment tie-ins from American Express, a joint campaign from PayPal and Venmo, and tour-linked promotions from Capital One, highlighting how event-based access is being used to attract cardholders and create brand affiliation that can later be extended through on-site and in-market experiences during the tournament. (Emarketer)

US Watchdog Says Paycheck Advances No Longer Subject to Lending Law

The Consumer Financial Protection Bureau said earned wage access products are generally not subject to the Truth in Lending Act, reversing guidance issued in 2024 that treated paycheck advances as consumer loans. In a nonbinding advisory opinion, the agency said most advances do not require disclosures on credit costs or terms, a shift that affects providers such as Chime, which offers interest-free access to earned wages without mandatory fees. The CFPB said the opinion is intended to provide clarity amid state-level exemptions in places like Nevada and Wisconsin, while noting that Congress has not set a federal standard; the move aligns with broader efforts under the Trump administration to roll back prior regulatory positions and narrow certain financial industry requirements. (Reuters)

Wisconsin Lawmakers Propose “True Lender” Test and 36% APR Cap for Consumer Loans

Wisconsin lawmakers introduced Senate Bill 759, which would impose a 36% APR cap on consumer loans and adopt a broader “true lender” standard that expands which entities are treated as lenders under state law. The proposal would apply a predominant economic interest and totality-of-the-circumstances test, add anti-evasion provisions, and require expanded reporting to the state’s banking regulator, with loans exceeding the cap deemed unenforceable. If enacted, the measure would materially change how bank-fintech partnerships and nonbank lending programs are structured in the state, adding compliance risk for platforms that market, fund, or control lending programs even if they are not named as the lender. (Troutman Pepper Locke)

Fed Seeks Public Input on ‘skinny’ Master Account Concept

The Federal Reserve Board is seeking public comment on a proposed “skinny” master account that would provide limited access to Fed payment services for eligible institutions, including certain state-chartered banks and fintech firms. The accounts would exclude interest, central bank credit, and expanded legal eligibility, and would be subject to balance caps, with the Fed framing the move as a way to support payments innovation while managing risk; Governor Christopher Waller said the goal is to issue a final rule by the end of 2026. The request for information passed in a 6–1 vote, with Governor Michael Barr dissenting over concerns about safeguards against money laundering and terrorist financing, while groups such as the Bank Policy Institute urged closer scrutiny; the proposal comes as regulators assess how to integrate a growing nonbank sector that now holds roughly half of global financial assets, according to the Financial Stability Board. (American Banker)

Visa, Mastercard Make a Global Push for Mobile Wallets

Visa and Mastercard are expanding mobile wallet distribution through a series of international partnerships as contactless and smartphone-based payments continue to gain share. Mastercard has recently partnered with TerraPay to extend NFC-based wallet acceptance across more than 150 million locations and is working with Telefónica on a mobile wallet rollout in Latin America, while also supporting integrations with Alipay for travelers and contactless payments. Visa, meanwhile, has launched or announced wallet partnerships with BBVA, Klarna, Vipps MobilePay, and Bancomat, citing internal data that shows mobile wallets now account for a majority of e-commerce transactions in Europe. Both networks are positioning these efforts ahead of broader wallet competition expected after Apple agreed with EU regulators to open access to its NFC technology, a move that could accelerate the entry of bank-led and non-card payment wallets that bypass traditional card rails. (American Banker)

Expedia, Yelp, Angi, and Square to Build New Agentic Experiences for Alexa+

Amazon said Alexa+ will add integrations with Expedia, Yelp, Angi, and Square starting in 2026, expanding its ability to handle service discovery and bookings through voice and agentic AI. The integrations will allow users to search, compare, and book travel, home services, and local beauty and wellness appointments directly through Alexa+, while giving merchants and service providers new distribution inside Amazon’s assistant ecosystem. The move reflects Amazon’s push to position Alexa+ as a transaction layer for services, not just information, as competition grows around agent-driven commerce and voice-enabled booking. (Amazon)

FINRA Flags Gaps in Oversight as Gen AI Expands Across Financial Operations

FINRA said member firms’ use of generative AI is expanding faster than the governance, documentation, and supervisory controls needed to manage associated risks, based on findings in its Annual Regulatory Oversight Report. Examinations found uneven oversight as firms deployed large language models across customer service, research, compliance, and content creation, often without formal risk assessments, clear ownership, or sufficient documentation of model behavior and outputs. FINRA flagged gaps in supervision of AI-generated communications, overreliance on vendor-provided tools with limited transparency into data handling and model updates, and weak controls around sensitive information and cybersecurity risks, noting that communications and recordkeeping rules apply regardless of whether content is produced by humans or AI. The report said governance structures remain fragmented at many firms, even as adoption accelerates and external research from groups such as PYMNTS Intelligence points to growing ROI from generative AI use, while studies from organizations including Anthropic highlight the potential for small amounts of malicious data to introduce hidden model vulnerabilities. (PYMNTS)

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Other News We’re Reading

(Retail) Amazon Faces ‘leader’s Dilemma’ — Fight AI Shopping Bots or Join Them (CNBC)

(Banking) PNC Adds Tech From Extend to Support Virtual Cards (American Banker)

(Crypto) Intuit and Circle Partner to Unlock the Future of Money Movement with Stablecoins (Intuit)

(Cards) Alaska Hiring Manager To Teach Flight Attendants How To Pitch Credit Cards (One Mile at a Time)

(Regulation) Oregon Enters $1.56M Consent Order With Two Companies for Alleged Excessive Interest Charges Under a Bank Partnership Model (Orrick)

(Fintech) Finastra Expands Global Footprint with New U.S. and India Offices (PR Newswire)

(Banking) Interactive Brokers Applies for National Trust Bank Charter (Bloomberg)

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The Free Toaster Team

p.s. If you’re working on anything new in acquisition or credit, we’re always curious to hear about it.