The Free Toaster: News

With Plaid Integration, ChatGPT is now a distribution channel for personal finance.

Thu, 21 May 2026 14:09:07 GMT

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

ChatGPT is now a distribution channel for personal finance. OpenAI launched a feature that allows users to connect their bank accounts using Plaid. They also partnered with Intuit to integrate tools like Credit Karma’s approval odds. This means ChatGPT can review a user's actual spending data, determine their approval odds, and recommend personalized financial products.

We explore how this new setup impacts traditional search traffic and affiliate sites like NerdWallet, and how this changes the affiliate marketing landscape in the lending industry.

Plus, we drop details on our upcoming September event in San Francisco, the Affiliate Marketing Summit For Lenders.

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 forward this to 1 of your colleagues!

Toaster Exclusive Event

Learn more at: events.thefreetoaster.com

This event is Proudly Sponsored by Experian & MoneyLion

learn more at events.thefreetoaster.com

ChatGPT Is Now a Distribution Channel For Financial Products

OpenAI launched a personal finance experience inside ChatGPT.

Perplexity did a similar thing a month earlier.

This marks the early innings of consumer attention shifting away from Google and the traditional affiliate listing pages and into the LLMs (for financial products).

Source: https://openai.com/index/personal-finance-chatgpt/

What Actually Happened

200 million people already come to ChatGPT every month to ask financial questions.

Previously, ChatGPT was answering personal finance questions in the abstract. It would give high-level answers loaded with assumptions, or it forced the customers to answer a pile of detailed questions.

Now, with Plaid fully integrated into ChatGPT, it answers those questions based on the customer’s real financial data.

How it works (for users in the “Pro” tier):

Connect bank accounts through Plaid
ChatGPT gets read access to balances, transactions, investments, and liabilities
Users get a financial dashboard, the ability to ask freeform questions, and personalized product recommendations built on their financial profile

Perplexity built the same thing with Plaid, while also layering in investment-grade data from FactSet, Coinbase, Nasdaq, and S&P Global.

ChatGPT and Perplexity both seem to appreciate the power of answering personal finance questions for their customers in the specific, not just the abstract.

Intuit’s Role In All Of This

In November 2025, Intuit announced a new $100M+ multi-year contract designed to accelerate its AI-driven expert platform strategy. TurboTax, Credit Karma, QuickBooks, and Mailchimp now live directly inside the ChatGPT experience.

Intuit’s CEO Sasan Goodarzi said: “For us, it doesn’t matter whether a customer comes directly to using our platform or we are where they are within an app, in this case ChatGPT.”

From OpenAI’s perspective, one of the unique things Credit Karma brings to the table is their approval odds models. The ability to tell a user, based on their real credit profile, how likely they are to get approved for a given card, loan, or mortgage. That’s roughly 2 decades of data infrastructure across 130MM+ members.

Imagine this: A user asks about credit cards. ChatGPT reviews their spending (enabled through the Plaid link), identifies $8,000 in annual United flight spend, surfaces the United card, checks approval odds through Credit Karma, and prompts them to apply. No new tab. No search results page.

That’s product discovery, validation of an underwriting match, and (potentially) a conversion funnel. And this can happen in a few key strokes inside ChatGPT.

Who Should Feel Threatened?

Traditional content affiliates should be very worried.

Specifically, sites that rank for terms “best travel credit card 2025,” serve generic display ads, and collect referral fees when users click through and apply.

That static webpage listicle couldn’t possibly know you spent $8,000 on flying on United last year. ChatGPT does. And, going further, it can tell you how many incremental rewards you’ll earn by moving your spend and confirm that the issuer will approve you if you apply.

Sites like NerdWallet have great content. But, OpenAI already consumed that data. What sites like NerdWallet don’t have is approval odds models with the scale and fidelity of a giant like Credit Karma.

Consumers chase convenience and utility.

The utility of an adviser with the context of Plaid’s transaction data, the certainty layer of Credit Karma’s approval odds, and the intelligence of OpenAI’s best foundational models is hard to beat.

Game, set, match for the LLMs. RIP Google’s pile of blue links.

The New Competitive Landscape

Credit Karma’s position is strong.

They are in a position to be the largest-scale approval odds provider for the ChatGPT ecosystem. OpenAI has no incentive to replicate that in-house. Building credit bureau & lender relationships, selecting attributes, and predicting approval odds across dozens of lenders is two decades of infrastructure work.

Experian’s position is also very interesting.

While a smaller-scale consumer marketplace than Karma (at least for now), they’re a credit bureau, too. So while Karma has to worry (at least a little bit) about existential risk tied to their credit bureau relationships, Experian can control their destiny across the value-chain.

OpenAI will happily outsource the challenge of predicting approval odds, especially knowing the total market for affiliate marketing spend in consumer lending is in the ballpark of $6B per year. That’s peanuts for a giant like OpenAI.

There’s an opening for the banks, though.

Karma’s models aren’t perfect. Based on their relationship with lenders & the bureaus, they can assert with high confidence that you’ll be approved, but they don’t guarantee it with 100% certainty. (To their credit through, they’ve gone as far as to offer consumers up to $50 when they get declined on offers with the Credit Karma Guarantee badge).

If a lender like Wells Fargo or Capital One built a direct integration with OpenAI, they could in theory deliver 100% certainty, something the likes of Karma and Experian would have a very hard time replicating. (And, to be clear, we’re not saying that 100% certainty is easy for the banks, it’s just that they have an advantage over the affiliates).

That’s because the lender could run their underwriting model with their own decisioning data in the background.

The affiliate marketplaces and the lenders have slightly different credit bureau datasets and they pull the data from the bureaus at different points in time, and those nuances could make the difference between ChatGPT saying “your chances for getting this product are really, really great” and “I can 100% guarantee it.” That’s a subtle, but important difference in consumer lending.

As the LLM surface proves it ability to secure consumer attention and transaction flow to lending products, OpenAI will have to decide if they want their approval odds coming through affiliate marketplaces like Credit Karma or Experian, directly from the lenders, or some combination of the two.

If OpenAI builds an open interface where any lender can plug in their own underwriting signal, the approval odds layer becomes a infrastructure race between institutions. And OpenAI will arbitrate whose signal it trusts most.

I’m guessing that’s something the executives at Credit Karma, Experian, and the other organizations positioned to play this role (companies like Free Toaster sponsor Spinwheel) are thinking about.

What Distribution Channels Survive The LLM Disruption

Direct mail is off-line. The AI overloads won’t be controlling what envelopes land in your inbox anytime soon. This will continue to be a bread and butter channel.

Social is structurally separate. It’s entertainment and education oriented. People don’t go to TikTok to ask financial questions. The issue with social is that approval rates tend to be lower due to the lack of credit-bureau-based targeting at the top of the funnel.

Podcast, YouTube, out-of-home. Owned media channels will stay as powerful mediums to get brand messages across, but will be tough to crack as direct-response channels because they lack credit bureau data signal at the marketing stage.

Google-based search intent will be swallowed whole. That slice of attention maps almost perfectly onto what ChatGPT, Claude, Perplexity, and the LLMs are now racing to capture.

Closing Thoughts

The LLMs are in the early days of constructing a personal finance super app.

The super app will accumulate context across your cards, deposit accounts, savings accounts, and use it to inform the answer to every question.

Further, because people will arm these super apps with personal context, financial goals, and lifestyle preferences, the super apps will do an amazing job delivering personalized, proactive advice that will create utility for the customer.

We have a classic data-led product flywheel.

ChatGPT gets smarter and more useful as you connect more data and context.

Smarter recommendations build more trust and more users. More trust and more users unlocks more data. At 200 million monthly active users, that product flywheel is already rolling down the hill.

Plaid unlocks the transaction layer. Credit Karma (and other data-forward marketplaces like Experian) could plug in the approval odds layer. Those are some of the foundational layers of a personal finance super app.

And more are coming, because we still need to solve for fraud, identity, and transaction processing at scale to make the most out of the LLM surface for personal finance.

The organizations that notice this, and can build a business owning a layer inside of the LLM surfaces, will have compounding advantages over time.

The ones waiting to see how it plays may be left fighting over the consumer attention that doesn’t migrate to the LLMs. Or, they’ll have a heck of a time elbowing their way in when they realize they’re late to the party.

The questions for every consumer lender and publisher right now: Do you have proprietary data, a differentiated model asset, or a product or service worth plugging into the personal finance super app? Or, do you have the ability to create this super app yourself?

It’s not a given that OpenAI, Perplexity, or Anthropic will earn the trust of the consumer as the personal finance super app.

How many people will hand ChatGPT the user name and password to their bank accounts and/or their Credit Karma or Experian accounts?

That’s a big unknown right now.

But the answer to that question over the next 12-24 months could materially change the landscape of consumer lending marketplaces.

[OpenAI] [Perplexity]

Sponsored by Spinwheel

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:

News Pod #18 - NerdWallet’s Q1’26 Earnings: Why Is The Stock Down 30%

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

Please support our Newsletter by sharing this edition with a colleague!

And, consider checking 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

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.

Other News We’re Reading

(SEO) Google Search as you know it is over (TechCrunch)

(SEO) Google Search is getting its biggest changes ever (The Verge)

(Agentic Commerce) Would you let robots spend your money? Google is betting on it (The Verge)

(BNPL) Affirm seeks bank apps to build its BNPL empire (American Banker)

(BNPL) Google Embeds Klarna BNPL Into Gemini AI Conversations (PYMNTS)

(Banks) Fintech firm Mercury hits $5.2 billion valuation after funding round, up 49% in 14 months (CNBC)

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

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.

NerdWallet's Q1 '26 Earnings: Why Is The Stock Down 30%?

Thu, 14 May 2026 12:03:45 GMT

Hey Toaster Readers,

This week is sponsored by our friends at New Market Growth.

Last week, NerdWallet announced earnings. The headlines all sounded great in the press release, but the stock is down ~30% since they shared earnings.

When we dug in, there was enough there for us to pause and wonder about the future of their business.

This week we’ll focus on what we learned from NerdWallet, and leave you with some additional news stories we think you should check out at the end.

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 subscribe or forward this email to 1 of your colleagues!

Save the date!

We’re deep in planning mode for our inaugural
Affiliate Marketing Summit For Lenders
(September 23 & 24th in San Francisco)

For exclusive invites & updates about this event, please reply to this email with “SF Event” so we can keep you informed!

Breaking Down NerdWallet’s Earnings

NerdWallet (NASDAQ: NRDS) reported $222 million in Q1 2026 revenue on May 6, up 6% YoY. Non-GAAP operating income hit a Q1 record of $34 million.

The headlines were fine.

Source: NerdWallet Q1 ‘26 investor letter.

But the stock market’s reaction signals there could be reasons for concern here.

Source: Google search. The stock was trading at $11.20 on May 6th before NRDS reported earnings.

And the earnings call had at least 5 moments worth flagging.

One auto insurance carrier flinched and the full-year guidance changed.

CEO Tim Chen didn’t sugarcoat it: “We have a lot of concentration towards a few carriers currently and a few channels.”

A single large carrier pulled back in March. That alone was enough to ding Q1, is expected to hit Q2 harder, and force NerdWallet to lower the bottom of full-year NGOI guidance.

If one insurance partner can move the full-year P&L, maybe the recent gains they’d seen in insurance weren’t broad-based. Maybe one or two carriers were leaning in (read: had extra marketing budget NerdWallet happened to capture), and are now moving back to a more sustainable position.

From past earnings reports (we covered the previous one here), the data was showing their former flagship business - credit cards - has been on a steady decline since 2023.

The narrative was that insurance was rocket-shipping to save the day.

Now the question is whether insurance follows credit cards down once the carriers driving recent growth pull back.

SMB is down 15% and nobody on the call seemed to care.

SMB revenue dropped 15% YoY, to $25M. The reason given in prepared remarks was a single sentence: “Within our SMB vertical, we saw year-over-year declines driven by organic search headwinds.” Motley Fool

That was it. No turnaround plan. No timeline. No diagnosis of which SMB products are bleeding versus holding.

Then the Q&A opened up. Three analysts asked three questions, about vertical integration spend, NGOI guidance math, and LLM traffic. Zero on SMB.

Either the sell side has already written SMB off, or management has trained them not to ask. Neither is a good look for a category that, just a few quarters ago, was being talked about as a meaningful diversification story.

Worth noting: buried in the CFO’s prepared remarks was a note that the SMB decline was partially offset by growth in loan originations. That’s an interesting positive, small business loan demand showing up in the funnel, and not one analyst pulled the thread.

That gives you clues on where SMB sits in the priority stack right now.

“Organic search headwinds” is doing a lot of heavy lifting.

That phrase shows up for both SMB and credit cards. It’s a polite way of saying Google and AI are eating our free traffic.

Tim’s LLM update, within the context of the insurance business: NerdWallet has dominant share of money-related queries inside LLMs, conversion is high, and it’s “a very small piece of our overall pie right now from a revenue perspective.”

Translation: the channel that’s growing isn’t material to the insurance business, yet. The old cash cow channel, SEO, is shrinking. That’s a scary reality for a business that depends on low cost, high-conversion traffic to thrive.

(For more on this dynamic, see our prior piece, The SEO Apocalypse Has Arrived.)

The margin beat had a Super Bowl-sized asterisk on it.

Q1 NGOI - at $34 million - looked great. Why? Per CFO Lauren StClair, the gain came from “lower other marketing expenses on lower brand spend, partially offset by higher performance marketing spend.”

In English: they didn’t run a Super Bowl ad this year, brand spend dropped, and they put more dollars into performance marketing.

Two takeaways:

The margin lift is partially a one-time comp benefit, not a structural improvement. Q2 NGOI is guided down from $34M to $6M–$14M.
A NerdWallet that buys more of its traffic each year is a NerdWallet that needs partners with elite conversion economics. Expect more pressure on bounty/CPA pricing, more A/B tests, and less patience for clunky application flows.

If your funnel is mid, we expect you’re going to feel the pressure. Best conversion rates will rise to the top, and the average/bad ones could effectively disappear.

“Vertical integration” sounded more defensive than offensive.

Morgan Stanley’s analyst directly asked Tim to walk through the ROI math on the new investments. The answer leaned on “our cost of capital is pretty high” and the idea that AI tools make it cheaper to build internally.

Building NerdWallet Insurance Experts, a branded agency routing calls to captive and independent agents, is a real pivot from their credit card content days.

NerdWallet is moving from lead-gen marketplace to operating their own customer-facing financial services business. That’s a different animal than referrals.

They’re entering it partly because the referral business is under pressure. Read into that what you want.

Furthermore, in a recent Morgan Stanley research report from May 7, 2026, analysts state their further conviction in the deteriorating business:

“We are more confident in our thesis that durable and profitable growth looks challenging for NerdWallet, with performance marketing intensity still elevated on both dollar ($122mm vs. $125mm in 4Q25) and percentage of revenue (54.9% vs. 55.5% in 4Q25) bases, which despite leverage on Other marketing in the quarter continues to suggest greater reliance on paid acquisition over time, which may continue to pressure incremental margins and ROIC.”

You partner with, or are considering partnering with NerdWallet. Now what?

NerdWallet still has the brand, the traffic, and the cash flow to be a top distribution partner, especially if you’re in deposits or personal loans (both growing). But this call had the texture of a company transitioning from a high-margin SEO business to a paid-traffic-and-services business. Both of which play outside of their historical competencies and could have a different margin profile.

Action items:

Ask your NerdWallet rep how your specific category (let’s say credit cards), is trending, at the top of the house. You need to know if the decline you’re seeing is you losing market share or you preserving or building share inside a declining category.
- Post publish edit: On May 14th we discovered, through a public filing on NerdWallet’s website (details here) that the credit card business declined 33% YoY from $38M in Q1 2025 to $25.5M in Q1 2026. They shared the last 7 quarters of revenue for Insurance, SMB, Loans and Emerging Verticals in that same report.
Audit your conversion funnel. In a performance-marketing-led NerdWallet, conversion is placement. Double down here. The last thing you want is for NerdWallet to conclude that your offer doesn’t work when the traffic source moves from free (SEO) to $20 per click from Google or Meta.
Diversify your affiliate mix, and work through what you’d do if a partner you currently count on for a good chunk of your volume were to create a shock in your lead flow.

At the highest level, we empathize with NerdWallet’s struggles.

We think their brand has an incredible amount of equity and trust in the category, and we’re rooting for them to get through this rough patch and back into sustainable, strategic growth in the lending category.

But, given the clues they dropped in this quarter’s earnings, we can’t help but be a bit worried about their future in a world where SEO continues to decline in importance.

Earnings

Affirm (Q3 FY2026, ended Mar 31) — Revenue $1.04B (+33% YoY); operating income $103M (9% margin); net income positive for first time as a public company. Earnings release · IR Page

Oportun (Q1 2026, ended Mar 31) — Revenue $229M (−3% YoY); net income $2.3M (vs. $10M prior year); adjusted EBITDA $29M. Earnings release · IR Page

Pagaya (Q1 2026, ended Mar 31) — Revenue $318M (+10% YoY); GAAP net income $25M (8% margin); adjusted EBITDA $94M (+18% YoY). Earnings release · IR Page

Sezzle (Q1 2026, ended Mar 31) — Revenue $135.5M (+29% YoY); net income $51.3M (+42% YoY, 38% margin); adjusted EBITDA $71.1M (52.5% margin). Earnings release · IR Page

Chime (Q1 2026, ended Mar 31) — Revenue $647M (+25% YoY); net income $53M (8% margin); adjusted EBITDA $119M (18% margin, +13pp YoY). Earnings release · IR Page

Dave (Q1 2026, ended Mar 31) — Revenue $158.4M (+47% YoY); net income $57.9M (+101% YoY); adjusted EBITDA $69.3M (+57% YoY, 44% margin). Earnings release · IR Page

Upstart (Q1 2026, ended Mar 31) — Revenue $308M (+44% YoY); net loss ($6.6M); adjusted EBITDA $40.5M (13% margin, down from 20% prior year). Earnings release · IR Page

Other News We’re Reading and Listening to

Another Fintech Bankruptcy: SMB Banking & Credit Card Startup Parker Files Chapter 7 Fintech Business Weekly | Jason Mikula

Pagaya Announces New Affiliate Partnership with Experian® to Expand Access to Personal Loans Business Wire

PayPal Plans Job Cuts as Fintech’s New CEO Pursues Turnaround Strategy Bloomberg.com

Brazil’s Mastercard Rival Elo Taps Bank of America, Other Banks for US IPO Bloomberg.com

Catch you next week,

The Free Toaster Team

Note: 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.

SoFi’s Best Quarter Yet Disappoints Wall St.

Wed, 06 May 2026 22:57:03 GMT

Hey Toaster Readers,

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

SoFi delivered its tenth consecutive quarter of GAAP profitability with record revenues of $1.1 billion, but missed Wall Street’s expectations. Experian is looking toward the future of security with the launch of its "Agent Trust" framework to verify bot-initiated transactions, while Stripe is turning AI agents into a direct commerce channel by plugging its checkout into Google’s AI Mode and the Gemini app. Meanwhile, OneMain Financial opened the year strong with $226 million in net income. Barclays completed its acquisition of Best Egg to expand its U.S. consumer lending reach and Synchrony took over the MyLowe’s Pro Rewards American Express portfolio.

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 subscribe or forward this email to 1 of your colleagues!

Save the date!

We’re cooking up The Affiliate Marketing Summit For Lenders on September 23 & 24th in San Francisco!

PS: For exclusive invites & updates about this event, please reply to this email with “SF Event” so we can keep you informed!

SoFi’s Best Quarter Yet Disappoints Wall St.

SoFi posted record results in Q1 2026, with GAAP net revenue hitting $1.1 billion, up 43% year-over-year, yet Wall Street wasn’t impressed. The stock dropped 13% after the company maintained its full-year guidance, disappointing a market conditioned to expect beat-and-raise quarters. The core reason: the quarter was overshadowed by a meaningful slowdown in SoFi’s capital-light businesses, particularly the Loan Platform Business, which missed Morgan Stanley’s estimate by 25%. For a company that has built its premium valuation around fee-based, capital-light growth, that slowdown mattered more than the record originations.

Total loan originations hit a record $12.2 billion, up 68% year-over-year, with personal loans leading at $8.3 billion, student loans up 119% to $2.6 billion, and home loans up 137% to $1.2 billion. The LPB contributed $140.8 million to consolidated adjusted net revenue and added $3.6 billion in new commitments from three new partners. Personal loan net charge-offs came in at 3.03%, down 28 basis points year-over-year, with newer vintages tracking inside the 7-8% lifetime loss guide.

On the card side, SoFi reported 436,184 credit card holders, up 42% year-over-year, with interchange fee revenue growing 54%, driven by nearly $25 billion in annualized spend across SoFi Money and the credit card. The borrower profile stayed prime at a weighted average FICO of 745 and average income of $154k.

For the first time in several quarters, balance sheet lending rather than capital-light businesses drove the top-line beat. The Technology segment underperformed, posting $75 million against expectations of roughly $105 million. Higher operating expenses added further pressure, as SoFi accelerated marketing spend in the first half of the year. Both Bank of America and Morgan Stanley maintained Underperform ratings post-earnings, with Morgan Stanley cutting its price target to $16 and Bank of America lowering theirs to $17.

SoFi pushed back.

Management said the LPB demand continues to exceed what the company chooses to fulfill, pointing to broad-based buyer interest and all existing partners approaching renewal choosing to extend. The harder question is whether private credit is competing for the same institutional buyer pool.

SoFi says no.

Morgan Stanley is not fully convinced, cutting its 2026 LPB forecast by 20% while raising ex-platform origination estimates by 25%. The 2H guide now requires a significant acceleration to hit full-year targets, a ramp the company believes its heavier 1H marketing investment will support. Whether that plays out depends on the LPB returning to form and the Technology segment stabilizing after losing Chime as a customer. (SoFi)

TOASTER’S TAKE

The SoFi management team’s earnings call left a goldmine of intel for marketers in the lending niche.

Here’s some things that stood out to us:

Their unaided brand awareness rose to an all-time high of 10% up 300bps from a year ago. We knew SoFi’s brand investments were top notch, but now we have data to quantify just how well they’re doing on this front.
Lending distribution = Direct mail + affiliates
- Many of us have this deeply ingrained in our DNA, but it’s nice to have a leader like SoFi put it out there in the open. “The lending business has historically been one that relies on legacy channels such as direct mail, but is heavily influenced by affiliate partnerships.” -Anthony Noto, CEO
Checking/savings distribution = Digital
- “Our SoFi Money product is a broad-based digital strategy that we leverage to drive good marketing efficiencies.” -Anthony Noto, CEO
Credit card 0% APR Balance Transfer offers are working
- “We're starting to see people transition from balance transfers with zero APRs actually paying a full APR at a reasonable rate.” -Anthony Noto, CEO
Brokerage distribution = Affiliate + digital
- “And that, again, is really an affiliate and visual marketing channel acquisition product.” -Anthony Noto, CEO
Crypto distribution = Not sure, still developing a POV
- “Crypto is the new kid on the street, and we’re developing new opportunities for marketing there.” -Anthony Noto, CEO

SoFi just publicly confirmed that affiliates are core to lending, checking/savings, and brokerage. For Toaster readers (many of whom are specialists/operators in this channel), this should be no surprise, but it also shows that the channel isn’t going anywhere, even for players with SoFi’s scale and brand.

We’ll be breaking down the friction between SoFi’s record growth and the market’s skeptical reaction in-depth later this week on The Free Toaster News Pod. Be sure to tune in!

Reach the Borrowers Others Miss.

Bulldog Media Group specializes in connecting consumer lenders with less than perfect borrowers — a massive, underserved market that requires precision targeting to get right. With 25 years of financial services marketing experience, they deliver qualified leads through affiliate marketing, targeted email, and data-driven acquisition strategies built for this exact audience.

If you’re a lender looking to scale, these are your people.

Get Qualified Borrower Leads

Experian Launches Agent Trust to Verify AI-Driven Transactions

Experian launched Agent Trust™, an identity verification framework that links AI agents to verified human owners to facilitate agentic commerce. Experian currently prevents $15 to $19 billion in annual fraud losses and is applying that data infrastructure to verify bot-initiated transactions. The system uses Human-to-Agent Binding to create a secure link between a consumer’s device and their AI representative. A real-time Agent Trust Token signals identity, consent, and fraud risk to merchants during the checkout process. An Agent Registry also monitors bot behavior over time to identify misrepresentation or unauthorized actions. The technology integrates with existing payment standards from Visa, Cloudflare, and Skyfire. This platform-agnostic tool allows businesses to process automated purchases while maintaining a verified connection to a human payer. (Experian)

Stripe Powers Checkout Inside Google’s AI Mode and Gemini

Google is turning AI Mode and the Gemini app into a direct sales channel. Businesses can now list products inside AI-generated responses and complete transactions without the user leaving the interface. The infrastructure is Stripe‘s Agentic Commerce Suite, handling discovery, checkout, and payment inside the AI experience. Retailers like Best Buy, Kate Spade, and Coach are already live. Quince, Fanatics, and JD Sports are coming on the Google side.

Affiliate-driven comparison sites and SEO-optimized landing pages have always competed for the top of Google results. AI Mode removes the click entirely. A consumer asking about the best personal loan or travel card gets an answer, and increasingly a buy button, inside the response itself. Publishers and marketplaces that sit between the consumer and the product, NerdWallet, LendingTree, and similar players, lose the referral step if AI handles both the recommendation and the transaction.

Stripe has already integrated the same setup with OpenAI, Microsoft, and Meta. And now Google is playing ball, too. (Stripe, PYMNTS)

OneMain Financial Reports Strong Q1 2026 Results with $226M Net Income

OneMain Financial opened 2026 with solid top-line results. Total revenue reached $1.6 billion in Q1, up 6% year-over-year, driven by receivables growth. Managed receivables grew to $26.1 billion, also up 6% from a year ago. Consumer loan originations totaled $3.1 billion, up 3% year-over-year. The company reported net income of $226 million, or $1.93 diluted EPS, versus $1.78 in Q1 2025.

The credit card portfolio is the clearest growth story this quarter. Receivables hit $983 million, up from $676 million a year ago, with customer accounts now at 1.17 million. Revenue yield on credit cards was 33.9%, up 309 basis points year-over-year. Credit card net charge-offs improved sharply, falling 176 basis points year-over-year to 18.0%.

On the consumer loan side, the net charge-off rate was 8.0%, up 19 basis points year-over-year. The 30-plus delinquency rate for consumer loans stood at 5.22%, up 14 basis points year-over-year, though the company noted that the older “back book” loans, now just 5% of the portfolio, are driving an outsized 14% of 30-plus delinquent receivables. The front book, representing originations since August 2022 credit tightening, continues to perform in line with expectations. (OneMain Financial)

E048 - Q&A on Application Friction - Nick interviews Carlos

Nick Madrid interviews Carlos Caro live at the Fintech Summit in NYC on April 28th.

On the heels of a Curated Table Event on April 27th (sponsored by Spinwheel), Nick bumped into Carlos at the Fintech Summit and did a short Q&A on how lenders eliminate friction from their application flows.

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

Please support our Newsletter by sharing this edition with a colleague!

And, consider checking 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

Synchrony Becomes Exclusive Issuer for Lowe’s Commercial Co-Brand Card

Synchrony now issues the MyLowe’s Pro Rewards American Express Card, taking over the co-brand portfolio to centralize Lowe’s commercial credit offerings. This new card runs on the American Express network and allows Pro customers to earn rewards at non-Lowe’s locations. It replaces the previous store-only model with a version that carries no annual fee and integrates into the existing MyLowe’s Pro Rewards program. The shift allows Lowe’s to move its commercial credit products under a single issuer to provide simpler applications and flexible financing for business project needs. This transition aims to consolidate the Pro customer experience by linking hardware spending with general business expenses. (Synchrony)

Barclays Completes Acquisition of Best Egg Personal Lending Platform

Barclays completed its acquisition of Best Egg. The deal integrates a scaled origination engine into Barclays US Consumer Bank to expand its existing credit card and deposit operations. Barclays will manage the business while maintaining the Best Egg brand identity. The acquisition follows an initial announcement on October 28, 2025. This transaction shifts Barclays toward a capital-light lending model in the U.S. market. The bank expects the move to increase capital efficiency and diversify its consumer finance revenue. (Barclays)

Upcoming Toaster Events

Affiliate Marketing Summit for Lenders (San Francisco | Sept 23–24)

Step away from the daily grind for a two-day, senior-level industry event in San Francisco. On day one, we’ll spend the day at the Exploratorium, a killer indoor/outdoor space where we’ll have a mix of keynotes, panels, structured networking, and great food & drink overlooking the water. On day two (optional, for anyone interested), we’ll head out to wine country so you can continue the conversations you initiated the day prior. Our goal is to make this Summit the ONE event per year you can’t miss if you’re a lender who’s serious about affiliate marketing.

B2B Fintech Founders Lunch: Using Content & Events to Scale (NYC | May 12)

Join us for a curated lunch and powerful conversation with 20 fellow founders and operators, exploring the most undervalued combination of personal brands and events. The hosts, our own Carlos Caro and Supriya Gupta, will candidly share a few lessons (and mistakes), where some of their best business relationships started and how they are thinking about content strategy this year. B2B fintech founders can learn more and register here.

PayPal Splits into Three Units and Makes Venmo a Standalone Division

PayPal is reorganizing into three business units and establishing Venmo as an independent division to accelerate growth for the payments platform. CEO Enrique Lores is leading this restructuring following his March appointment and the departure of former CEO Alex Chriss. The new structure separates Venmo from a consumer and merchant group and a payment services arm containing Braintree and crypto operations. Creating a standalone Venmo segment simplifies performance tracking and creates a path for a potential sale of the asset. This move follows reports that Stripe evaluated an acquisition of parts of PayPal. The company currently faces intensifying competition from large technology firms and fintech rivals. PayPal shares have slipped 12.7% this year after a 2026 profit forecast fell well short of analyst expectations. Management will disclose further details of the overhaul during next week's earnings call. (Reuters)

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.

Sources: Fiserv, Mastercard, Visa, Upbound Group (Brigit)

Other News We’re Reading and Listening to

(Credit) Nearly Half Of Americans Regret Financial Decisions Due To A Lack Of Understanding, Experian Research Finds (Experian)

(Travel/Rewards) Lyft And United Launch First-Ever Pay With Miles Option For U.S. Rideshare (Lyft)

(Economy) The U.S.-Iran War Is Coming For Your Credit Score And Mortgage Application (CNBC)

(Lending) Justice Federal Credit Union Selects Upstart To Expand Personal Lending (Business Wire)

(AI/Banking) Introducing AI Agents: Next Phase Of Citi Artificial Intelligence Journey (Citi)

(Security) Frontwave CU Discloses Data Breach Involving Member SSNs (CU Today)

(Tech Standards) PYMNTS: Google And Mastercard Contribute Agentic Commerce Standards To FIDO Alliance (FIDO Alliance)

(Crypto/Cards) Introducing MoonAgents Card (MoonPay)

(Cards) Royal Caribbean Debuts Two New Credit Cards: Are They Worth It? (One Mile at a Time)

(Banking/M&A) Mercury Receives OCC Conditional Approval To Establish Mercury Bank, N.A. (Business Wire)

(M&A) OppFi Announces Definitive Agreement To Acquire BNCCORP, Inc. And BNC National Bank And The Elimination Of Up-C Structure (OppFi)

(Fintech/Investment) Goldman Sachs Invests $50 Million In Kashable (American Banker)

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

https://www.thefreetoaster.com/p/sofis-best-quarter-yet-disappoints

Catch you next week,

The Free Toaster Team

OnePay Launches (Credit) Builder Card

Wed, 29 Apr 2026 20:07:16 GMT

Hey Toaster Readers,

This week is sponsored by our friends at Fintel Connect.

OnePay is bridging the credit gap for thin-file consumers with its new no-deposit, no-fee Builder Card. Meanwhile, LendingClub had a strong quarter where originations climbed 31%. Capital One’s net income hit $2.2B as the Discover acquisition takes full effect, while American Express continues to dominate the premium market with an 18% jump in membership fees. Additionally, Aven launched a Bitcoin-backed Visa Card and Cash App is capturing Gen Alpha with new accounts for kids as young as six.

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 forward this email to 1 of your colleagues!

OnePay Launches Builder Card: No Deposit, No Credit Check, No Fees

The OnePay Credit Builder card enters a crowded space. With similar existing products from Chime, Current, Kikoff, Arro, Upgrade, and more! It runs on Mastercard rails, connects directly to the customer’s Cash account, and reports positive payment activity to all three major bureaus each month. Customers spend from their available balance, the app sets funds aside automatically, and payments run on autopilot. No revolving debt, no way to overspend.

The card is only available to existing Cash account holders, a choice that deepens the app’s value for users already in the ecosystem. OnePay doesn't need to underwrite it. The Builder Card spends from a balance the customer already holds, so there's no default risk to price for. It can serve the consumer that Chase and Capital One walked away from, and it costs OnePay almost nothing to do it. OnePay's distribution comes from Walmart, where 90% of the U.S. population lives within 10 miles of a store.

The timing also lines up with a bigger distribution push. Three weeks ago, OnePay became a Workday Wellness partner, putting its financial tools inside employer HR and payroll systems. Workers switching direct deposit through Workday can now access banking, investing, and credit building in one app. For context on where the company stands: back in January, we shared that OnePay hit a $4B valuation, up from $2.5B in 2024. It has 3 million monthly active users and is built almost entirely on the Walmart partnership. The Workday deal suggests they are ready to grow beyond it. (OnePay)

Sponsored by Fintel Connect

Is Your Marketing ROI Falling Behind Other Banks and Credit Unions?

Cornerstone Advisors‘ latest report, commissioned by Fintel Connect, The Marketing ROI Gap in Banking uncovers a growing disconnect between where financial institutions invest and where they actually see results. Based on insights from 126 senior executives at large U.S. banks and credit unions, the data points to a persistent gap between spend, performance, and measurable ROI.

Inside the report, you’ll find:

ROI measurement is still broken: 20% of banking executives can’t reliably attribute marketing outcomes, and nearly 60% say their core or CRM limits ROI measurement.
Affiliate is a major missed opportunity: Only one-third of financial institutions use it, yet it ranks among the top channels for customer lead quality and remains one of the most underleveraged channels in the mix.
Budgets aren’t performance-driven: 60% of institutions still set marketing budgets based on last year’s spend rather than ROI.

Written for marketing, growth, lending, and finance leaders, this report highlights where performance is breaking down - and where smarter investment decisions can unlock stronger returns.

Rethinking your growth strategy?

Start Here

Credit One Bank and Bright Money Partner to Launch Embedded Credit Card Tools

Credit One Bank integrated its credit card products into the Bright Money app, granting more than 1 million users direct access to three Visa products. This partnership marks the bank's second fintech integration using its proprietary API, following a 2025 deal with MoneyLion. Users link bank accounts to the Bright Money’s Money Science algorithm to receive personalized offers for the Platinum Visa for Rebuilding Credit or two Platinum Rewards Visa options. All three cards provide 1% cash back on gas, groceries, and telecommunications. The system uses AI to analyze income and spending before facilitating the application process within the native app environment. This move targets digital-first consumers by bypassing traditional external application sites. (PR Newswire)

Aven Launches Bitcoin-Backed Visa Card With Up To $1M Credit Limit

Aven launched a Bitcoin-backed Visa card that provides a line of credit up to $1 million without requiring the sale of the underlying bitcoin asset. The Aven Bitcoin Visa Card functions as a secured loan where users deposit bitcoin with an OCC-regulated custodian to access liquidity for everyday purchases or major expenses. This structure allows long-term investors to avoid costly tax consequences associated with capital gains while maintaining their original BTC positions. The product features fixed-rate terms lasting up to 10 years and includes a 5-year interest-only payment period. Users receive unlimited 2% cash back on purchases and pay no annual fee for the account. A 1% fee applies to cash outs and the card carries risk of liquidation if market volatility impacts collateral value. Aven originally focused on home equity products and is now applying the secured lending model to digital assets. (Aven)

LendingClub’s $2.67B Originations and the Rebrand

LendingClub closed Q1 2026 ahead of guidance on every major metric and announced it is rebranding to Happen Bank this summer. Total net revenue reached $252.3M, up 16% year-over-year. Originations hit $2.67B, up 31% from $2.03B in Q1 2025, driven by product and marketing initiatives. Net interest income grew 18% to $176.2M, with net interest margin expanding to 6.28% from 5.97% a year ago. Deposit funding costs came down, with the average rate on interest-bearing deposits dropping to 3.60% from 3.91% in Q1 2025. The rebrand reflects a deliberate repositioning away from its marketplace lending roots toward a full-service digital bank, one that combines deposits, lending, and a capital-light marketplace model under a single consumer brand.

The credit story is where lending teams should pay close attention. LendingClub's personal loan book is priced at an average APR of around 15%, against the national credit card average of 22%, a 700 basis point gap that the company is actively using as a customer acquisition argument. Net charge-offs on loans held for investment dropped to $42.5M from $76.1M in Q1 2025, a 44% improvement. For credit and lending teams, their NIM expansion signals that LendingClub is growing volume while actually improving book quality, not trading one for the other.

The Happen Bank rebrand could also help with distribution. Moving from a lending-first identity to a full banking brand gives the company more surface area to cross-sell deposits, checking, and eventually home improvement loans into its existing base of 5 million members. (LendingClub)

News Pod #15 - OpenAI Acquires Hiro Finance

In the latest The Free Toaster News Pod, we deconstruct OpenAI’s power move into the financial sector with their acquisition of Hiro Finance. Building on our recent coverage, we look at how this integration could reshape consumer lending distribution. It’s a quick breakdown of what changes when a major AI player moves deeper into fintech infrastructure.

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

Please support our Newsletter by sharing this edition with a colleague!

And, consider checking 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

TransUnion Q1 2026: 14% Growth Fueled by U.S. Lending Surge

TransUnion reported $1,246 million in total revenue for Q1 2026, up 14% year-over-year (11% on an organic constant currency basis), beating its own guidance across revenue. U.S. Financial Services drove the quarter, growing 24% organically to $501 million. Within that, auto was up 11%, consumer lending up 21%, and card/banking up 5%. Full-year 2026 revenue guidance was raised to $5.10–$5.14 billion, primarily reflecting the completed acquisition of TransUnion de Mexico, with organic constant currency growth assumptions held steady at 8–9%.

The number that matters most for lending and fintech operators: U.S. Financial Services revenue grew 24% year-over-year to $501 million. That segment covers the credit data and analytics products lenders rely on for underwriting, marketing, and customer acquisition. Growth was broad-based across lending verticals, which signals that lenders are pulling more data, running more decisioning, and actively growing their books.

What makes these numbers hold up over time is the data underneath them. At its March Investor Day, TransUnion management noted that 95% of revenue comes from a proprietary data moat: 84% core credit, 11% alternative data. The Neustar acquisition added identity resolution data; the Argus acquisition brought over 450 billion credit card transactions. Management has been leaning into alternative data, including utility payments and rental furnishing tradelines, to supplement core credit files, deepen penetration, and build new products. (TransUnion)

Amex Reports 11% Revenue Increase and Record Card Member Spend

American Express posted a strong Q1 2026, with total revenues of $18.9 billion, up 11% year-over-year. Card member spend accelerated to 10% growth, the highest quarterly rate in three years. Net card fees hit $2.8 billion, up 18%, compounding at 17% annually since 2019. Net interest income grew 13% to $4.7 billion, driven by revolving balance growth. Despite revenue coming in at or above the high end of full-year guidance, management held its 2026 outlook at 9-10% revenue growth, citing a forthcoming drag from two commercial card partnership exits: Lowe’s moving to Synchrony and Amazon transitioning to U.S. Bank in Q3.

Net card fees growing at a 17% CAGR since 2019 reflects a durable premium card model still pulling in annual fee customers. 73% of all new accounts acquired globally were on annual fee products.

On the lending side, net interest income has grown 12% year-over-year for four consecutive quarters. The bigger strategic story is Amex’s push into agentic AI commerce. The company launched its Agentic Commerce Experiences (ACE) developer kit and introduced Amex Agent Purchase Protection, an industry-first commitment to cover registered agentic purchases by cardholders.

Amex also recently acquired Hypercard. Management was clear on the earnings call that this is a long-term play. The thesis centers on Amex’s closed-loop network: its ability to match declared purchase intent with actual transaction data gives it fraud detection and authorization capabilities that open networks cannot replicate. They noted this could ultimately produce stronger fraud protection than what exists today in both online and brick-and-mortar commerce, where purchase intent data is simply unavailable. (American Express)

Capital One Reports $2.2B Net Income Amid Discover Acquisition Gains

Capital One posted $15.2 billion in total net revenue for Q1 2026, up 52% year-over-year. The growth is largely attributable to the Discover acquisition closing in May 2025. Quarter-over-quarter, revenue fell 2%, driven by lower net interest income as the company carried higher average cash balances and saw lower average credit card loans. The credit card segment generated $11.4 billion in net revenue, up 59% year-over-year. Domestic card purchase volume reached $216.5 billion, up 40% year-over-year but down 8% from Q4 2025, consistent with seasonal patterns. Pre-provision earnings grew 8% quarter-over-quarter to $6.8 billion.

On the credit side, the trend is improving. The domestic card 30-plus day performing delinquency rate fell to 3.70%, down 55 basis points year-over-year. The domestic card net charge-off rate came in at 5.10%, down 109 basis points from Q1 2025. Morgan Stanley noted that Capital One management described the consumer as remaining robust, with unemployment improving and card purchase volumes accelerating, while delinquencies outperformed seasonal expectations. On expenses, Morgan Stanley flagged that adjusted non-interest expense came in about 3% better than forecast, with the adjusted efficiency ratio at 49.7% versus an estimated 50.6%. That said, marketing spend is expected to increase through the rest of 2026, as Q1 reflects both a seasonal low and a deliberate timing shift of some marketing investment into later quarters. (Capital One)

The Toaster team is on the ground in NYC for Fintech Week.

We kicked things off with a hosted dinner, The Free Toaster Presents: Eliminating Friction In Your Marketing Funnel, sponsored by Spinwheel. The room brought together operators and growth leaders across lending and fintech.

In the photo: Amanda Braslow, Carlos Caro, and Nick Madrid from The Free Toaster with attendees from the dinner.

Upcoming Toaster Events:

Affiliate Marketing Summit for Decision Makers (San Francisco | Sept 23–24)
Step away from the daily grind for a two-day, senior-level industry event in San Francisco. On day one, we’ll spend the day at the Exploratorium, a killer indoor/outdoor space where we’ll have a mix of keynotes, panels, structured networking, and great food & drink overlooking the water. On day two (optional, for anyone interested), we’ll head out to wine country so you can continue the conversations you initiated the day prior. Our goal is to make this Summit the ONE event per year you can’t miss if you’re a lender who’s serious about affiliate marketing.

Missed the Direct Mail Curated Table event on March 5th? Check out what I learned here.

Equifax Posts 14% Revenue Growth in Q1; Maintains Conservative 2026 Outlook

Equifax posted Q1 2026 revenue of $1.649 billion, up 14% year-over-year and $37 million above its February guidance midpoint. The beat was driven primarily by a strong U.S. mortgage market in January and February before rates rose following the Iran conflict. Equifax maintained its full-year 2026 constant currency revenue guidance of 10-12% growth, citing continued uncertainty around interest rates and mortgage activity, while raising its reported revenue guidance by $25 million for favorable FX impact.

USIS, the segment most directly relevant to consumer lenders, delivered 21% revenue growth in Q1. Within that, Diversified Markets, which covers financial institutions, auto, and consumer lending, grew only 3%, with core FI and core auto each up mid-single digits. Consumer Lending under Workforce Solutions Verification Services grew 14% year-over-year. Notably, Morgan Stanley flagged that volumes softened later in the quarter, not just in mortgage but also to a lesser extent in auto and card. On the credit scoring side, Equifax is actively pushing VantageScore 4.0 adoption at a $1 price point, with 240+ mortgage lenders currently testing it alongside paid FICO scores. A full conversion to VantageScore would reduce USIS mortgage scoring revenue by approximately $385 million, but increase Equifax’s adjusted EBITDA by roughly $35 million at current volumes. Morgan Stanley maintained its Overweight rating on the stock, noting that credit bureaus are starting from a muted base and should enter a multi-year upcycle trend, with the potential to grow revenue at low-double-digit to mid-teens rates. The firm also pushed back on AI disruption concerns, arguing that the bureaus’ data and regulatory moats should insulate them from competition. (Equifax)

Cash App Targets Gen Alpha With Parent-Managed Accounts for Kids 6-12

Cash App launched managed accounts for children aged 6 to 12 to capture the Gen Alpha demographic. The financial platform owned by Block provides mobile payments, debit cards, and investing services. Parents control these accounts through their own Cash App profile. Kids receive a debit card and earn 3.25% interest on savings balances. The service allows automated allowance transfers and P2P payments from up to five parent-approved contacts. Cash App currently has 5 million monthly active teen users. Users transition to a sponsored account with stock and Bitcoin trading capabilities at age 13. PwC data shows 89% of Gen Alpha teens already have their own smartphone, while 72% regularly spend on categories like food and drinks and over half purchase digital goods like apps and in-game items. (Cash App)

American Express Integrates Resy into Anthropic’s Claude for Real-Time Reservations

American Express integrated its Resy digital dining platform into Anthropic’s Claude AI to provide real-time table availability for U.S. restaurants. Resy operates software that manages reservations and connects restaurants to a network of diners. Users can now search for restaurants within Claude and receive prompts to connect to the Resy app. The integration displays restaurant recommendations based on chat context. It allows users to view venue pages, check available tables, and set Notify alerts. Claude then redirects users to Resy.com or the mobile app to finalize bookings. This partnership surfaces inventory to diners to help restaurants drive demand. (American Express)

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.

Other News We’re Reading and Listening to

(Auto) America’s Pandemic Car Bubble Is Now Trapping Buyers in Debt (WSJ)

(Lending) Affirm: Agentic Credit Rewrites the Rules of Consumer Lending (PYMNTS)

(Cards) AT&T and Citi Enhance the AT&T Points Plus Card (Citigroup)

(Payments) Uber and Block Expand Global Partnership to Transform Restaurant Operations and Launch Cash App Pay (Uber)

(Cards) Alaska Air Group and Bank of America Expand Long-Standing Credit Partnership (Bank of America)

(Lending) Total Expert Launches Customer IQ to Power Agentic Era in Mortgage Banking and Consumer Lending (Business Wire)

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

https://www.thefreetoaster.com/p/onepay-launches-credit-builder-card

Catch you next week,

The Free Toaster Team

OpenAI Doubles Down: Hiro Finance Marks Second Fintech Buy in Six Months

Wed, 22 Apr 2026 21:17:34 GMT

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

OpenAI acquired Hiro Finance on April 13, its second fintech purchase following the 2025 acquisition of Roi. Meanwhile, LendingClub will rebrand to Happen Bank this summer. Mission Lane applied for a national bank charter with the OCC and FDIC to transition from its partner-bank model. FinWise Bancorp partnered with Vera, Inc. to launch an unsecured credit card program, while Synchrony launched a private label card for RH. Additionally, Ally and Bank of America reported their Q1 2026 earnings.

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 forward this email to 1 of your colleagues!

OpenAI Doubles Down on Fintech with Hiro Finance and Roi Acquisitions

OpenAI acquired personal finance startup Hiro Finance on Monday, marking its second fintech purchase in six months following the October 2025 acquisition of Roi. Hiro Finance develops tools for complex financial modeling and what-if scenarios, helping users project the impact of debt and investments. Founder Ethan Bloch and his team will join OpenAI to work on specialized engineering projects, while Hiro Finance shuts down operations on April 20. This follows the deal for Roi, a startup that raised $3.6 million from Spark Capital and Gradient Ventures to build a portfolio tracking app with an AI-driven investment advisor. While Roi focused on retail investment personalization, Hiro Finance adds deeper capabilities in mathematical financial simulations. These acquisitions support OpenAI’s expansion into enterprise services through Codex Labs, which currently reports over 4 million weekly active users. OpenAI is also scaling its global reach through a partnership with Infosys to deploy AI tools across 60 countries. (American Banker) (TechCrunch) (Fintech Futures)

Toaster’s Take

Hiro and Roi were not acquired because OpenAI wanted a budgeting app. They were acquired because both teams had figured out something specific: how to take messy personal financial data and turn it into a clear, actionable output. That’s a hard problem. Hiring for it in-house is harder.

What’s worth watching is where that capability lands inside ChatGPT. Hiro wasn’t just a recommendation engine. It was built to model what happens after you make a decision. That’s a different product category than “here are your options.” It’s closer to execution than discovery.

Today’s distribution model for lending depends on a user seeing an offer, deciding to pursue it, and completing the process themselves. Every click in that chain is a potential drop-off point. If OpenAI builds a layer that collapses those steps, ChatGPT-native financial starts feeling way more convenient than 2026-era marketplaces.

Google tried this. It had the data, the reach, and the brand. It still couldn’t get users to trust it with their financial lives. OpenAI may be more advanced on the product side, but the trust problem doesn’t go away because the AI is smarter. It’s a separate barrier, and it’s real.

The question isn’t whether OpenAI can build a good financial product. It almost certainly can, if it put the right resources against it. The question is whether users will convey their trust. Recommending a loan is one thing. Applying for one on your behalf (at potentially dozens of lenders) is another conversation entirely.

For now, the pressure is low. Adoption will be gradual. But the benchmark for convenience is shifting. Platforms built around user-driven flows should be paying attention, because the standard for “low friction” is about to get redefined.

We will be digging into this story further later this week in The Free Toaster podcast.

Sponsored by Spinwheel

With many happy customers, including:

LendingClub to Become Happen Bank, “a Digital Bank for People Going Places”

LendingClub will officially rebrand to Happen Bank in the summer of 2026. The company operates a digital marketplace bank that currently serves more than 5 million members and has facilitated over $100 billion in loans. CEO Scott Sanborn noted the name change follows a multi-year transition from an online lender to a diversified digital-first bank. The new identity targets the Motivated Middle, defined as high-FICO, above-average income consumers who actively manage their finances. While the visual branding will change, the bank will maintain its existing interest rates, loan terms, and account features. The shift includes a new website, mobile app, and marketing system designed to reflect action and progress. Management indicates the name change aligns with their expanded banking capabilities and a strategy to deliver long-term shareholder value. This rebrand marks the next phase of a business model that combines credit underwriting with a digital marketplace. (PR Newswire)

Mission Lane Credit Card Startup Applies For Bank Charter

Mission Lane applied for a national bank charter with the OCC and FDIC to transition from a fintech partner to a standalone special-purpose credit card bank. The Richmond-based company currently serves three million customers and targets a niche of 70 million credit-marginalized Americans underserved by traditional finance. As a CEBA institution, the proposed Mission Lane Bank will focus exclusively on credit card products and optional credit protection. The bank will not accept demand deposits, offer checking accounts, or engage in commercial lending. This filing moves the firm toward a de novo charter, following similar moves by Affirm, Upstart, and Mercury. Mission Lane currently relies on Transportation Alliance Bank to issue its cards. Obtaining this charter allows the company to operate under a federal regulatory framework rather than relying on third-party sponsor banks. (PYMNTS)

News Pod #14 - Wells Fargo Books 631,000 New Credit Card Accounts in Q1 2026 - How Did They Do It?

In the latest The Free Toaster News Pod, we deconstruct Wells Fargo’s massive 60% YOY surge in credit card bookings, totaling 631,000 new accounts for Q1 2026. Expanding on their recent newsletter coverage, we dig into the aggressive acquisition tactics fueling this volume and what it means for the rest of the industry. It’s a quick-hit breakdown of how the banking giant is suddenly dominating the customer acquisition race.

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

Please support our Newsletter by sharing this edition with a colleague!

And, consider checking 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

FinWise Bancorp Partners with Vera, Inc. to Launch Unsecured Consumer Credit Card Program

FinWise Bancorp signed a BIN sponsorship agreement with Vera, Inc. to launch an unsecured consumer credit card program for prime and near-prime U.S. borrowers. FinWise Bancorp provides API-driven banking and payment infrastructure to fintech firms. Under this deal, FinWise Bank issues the cards while Vera, Inc. serves as the program manager and purchases the resulting receivables. The cards offer three reward modes with no annual fees and function through Vera, Inc.'s mobile application. The technical stack utilizes Zeta’s Tachyon cloud-native processing platform. Vera, Inc. is a 2025 startup led by former Capital One executives. This partnership expands FinWise Bancorp’s existing strategic program lending and payments business. (Global Newswire)

Synchrony Launches Integrated Credit Card Program for RH

Synchrony launched a new private label credit card for RH to provide promotional financing across the retailer's galleries, outlets, and e-commerce sites. RH operates as a luxury home furnishings curator with retail locations and hospitality experiences across North America and Europe. The card integrates with the RH Members Program to combine existing 30% member discounts with specific financing rates. Synchrony uses its PRISM decisioning system to evaluate 9,000 data attributes for each applicant. This system provides credit decisions within minutes during the customer checkout process. The partnership expands Synchrony's footprint in the home segment where it currently maintains contracts with over 50% of the Furniture Today Top 100 retailers. RH customers gain access to these financing options immediately through a digital prequalification process. (Synchrony)

Upcoming Toaster Events:

Eliminating Funnel Friction: A Private Dinner (NYC | April 27th)
Join us for an evening of high-level shop talk at a curated dinner in the heart of New York City. We’re skipping the slide decks and the “salesy” conference energy in favor of something more authentic. It’s just 15 growth leaders, a table of incredible food, and a raw discussion on the design tweaks and tech stacks actually moving the needle on conversions right now. Learn more about the event here.

Missed the Direct Mail Curated Table event on March 5th? Check out what I learned here.

CarParts.com Introduces the CarParts.com Mastercard®

CarParts.com launched the CarParts.com Mastercard through a partnership with Concora Credit and The Bank of Missouri. This technology-led e-commerce business sells over 1.5 million vehicle parts and accessories via its nationwide distribution network. The new credit program offers cardholders 3% cashback on CarParts.com purchases and 1% on other transactions. Customers can prequalify for the card without a credit score impact. This launch follows a product expansion that added 100,000 SKUs to the company catalog over the last year. The company also recently introduced the CarParts+ membership and specialized hubs for European and performance vehicles. CEO David Meniane stated the strategy focuses on building a driver-first experience to simplify vehicle maintenance. The company continues to manage several private-label brands including JC Whitney and Garage-Pro. (CarParts.com)

Sezzle Canada Launches Virtual Card, Expanding Buy Now, Pay Later Capabilities

Sezzle launched its Virtual Card in Canada to enable in-store "buy now, pay later" payments at point-of-sale terminals. The fintech company provides interest-free installment financing and currently reports 1.9 million user sign-ups and nearly 7 million total orders in the Canadian market. Sezzle integrated the card with Marqeta technology to allow eligible users to add the credential to Apple Pay and Google Wallet. This expansion targets more than 90% of Canadian retailers that accept contactless payments, including SoftMoc, JD Sports, and QE Home. Internal 2025 survey data showed 74% of users were more likely to shop in-store if Sezzle was an available payment option. The launch aims to increase transaction volume and basket sizes for brick-and-mortar merchants without requiring new hardware integrations. (Sezzle)

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.

Sources: Ally, Bank of America

Other News We’re Reading and Listening to

(Fraud) As AI-Driven Fraud Grows More Sophisticated, Advanced Digital Defense Becomes Essential (TransUnion)

(Banking) North Iowa Community Credit Union Launches Mahalo Digital Banking Platform (Business Wire)

(Payments) Adyen Expands Its Partnership With lastminute.com By Introducing Virtual Card Issuing For Supplier Payments (Adyen)

(Fintech) Slash, A Ramp Competitor Founded By Teenagers, Raises $100M At $1.4B Valuation (TechCrunch)

(Lending) 4Front Credit Union Selects Scienaptic AI’s LendSmart Auto To Power Deal-Level Vehicle Loan Pricing (Scienaptic AI)

(Payments) Galileo Enables SoFi To Send And Receive FedNow® Service Payments (Business Wire)

(Acquisition) American Express To Acquire Hyper, Adding To Its AI Expertise And Expense Management Capabilities (American Express)

(Cards) Wells Fargo Adds Wyndham Rewards As A Transfer Partner (Forbes)

(Fintech) Ramp Is Telling Investors It Is About To Hit $1.4 Billion In Revenue A Year, As The Company Prepares To Go Public (Business Insider)

(Marketing) Ally Achieves Historic 50/50 Sports Media Pledge One Year Ahead Of Schedule (Ally)

(Payments) Airwallex Is About To Take On Stripe And The Rest Of The Payments Industry — In The Physical World (TechCrunch)

(AI) Welcome To Vibe Ordering, ChatGPT Is Taking Your Order Now (PYMNTS)

(Cards) Lobster.cash Teams With Mastercard To Secure Agentic Card Transactions (PYMNTS)

(Payments) Venmo Continues Its Evolution From A Peer-To-Peer App Into A Money Movement App For The Next Generation (PayPal)

(Innovation) American Express Debuts Agentic Commerce Experiences (ACE)™ Developer Kit And Announces Industry-First Protection For Registered Agent Purchases (American Express)

(Cards) Private Credit Is On The Hunt For Credit-Card Debt (WSJ)

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

https://www.thefreetoaster.com/p/openai-doubles-down-hiro-finance

Catch you next week,

The Free Toaster Team

Wells Fargo Books 631,000 New Credit Card Accounts

Wed, 15 Apr 2026 23:22:31 GMT

Hey Toaster Readers,

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

Wells Fargo is reporting a massive surge in new credit card accounts, but there is a catch: purchase volume isn't keeping pace, and a reporting change for co-branded cards is muddying the waters. JPMorgan Chase and Citi are posting major profit jumps , JetBlue and Barclays are overhauling premium card benefits , and Atlas is pivoting to a $999 billionaire charge card after its previous debit startup collapsed.

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!

Wells Fargo Posts $5.3B Q1 Profit as Loan Growth Hits $1 Trillion Milestone

Wells Fargo posted $21.4 billion in revenue for Q1 2026, up 6% year-over-year, with net income of $5.3 billion. The loan book crossed $1 trillion in period-end balances, with commercial and industrial lending the primary growth driver, up 23% year-over-year. Consumer loans held relatively flat. Deposits were up 7%, and average deposit costs continued falling, down 15 basis points from the same period last year. Consumer loans grew modestly, up about 4% year-over-year, with auto originations more than doubling and credit card balances up 5%. Card fees climbed 9% on higher merchant processing and debit interchange income. Headcount fell 7%, which management tied to ongoing efficiency initiatives, while advertising and promotion spend jumped over 100% year-over-year.

The more interesting story for fintech operators is what’s happening in Consumer Banking. Wells opened 631,000 new credit card accounts in Q1 2026, nearly 60% more than the 396,000 opened in Q1 2025. Purchase volume also climbed, reaching $40.0 billion versus $36.7 billion a year prior. Both figures cover combined consumer and small business customer activity. Worth flagging: Wells revised its credit card metrics this quarter to exclude co-branded cards, with prior periods restated to match. That means the growth figure reflects proprietary card activity only, which is worth keeping in mind before reading too much into the year-over-year jump. (Wells Fargo)

Toaster’s Take

Account growth of that magnitude runs far above the typical 5-10% range for large issuers. That alone is worth a second look. But the bigger puzzle is what isn’t moving alongside it. Purchase volume grew modestly year-over-year. Balances don’t show a similar spike. Delinquencies are stable. The natural question: if these are high-quality acquisitions, why isn’t spend following?

A few possible explanations:

One is churn. The metric here is new accounts, not net new accounts. Wells could be adding aggressively on one end while losing or closing accounts on the other. Another is acquisition mix. If the funnel has shifted toward lower-spend or promotional-driven signups, you’d get exactly this pattern: strong account numbers, weak purchase volume. A third is portfolio reshuffling. Wells may be migrating customers from discontinued products into new ones, which counts as new accounts in the data without necessarily representing new customers.

The co-branded card exclusion adds another layer. Wells revised its credit card metrics this quarter to exclude co-branded cards, with prior periods restated to match. That change affects how the year-over-year growth reads, and it’s worth keeping in mind when interpreting the magnitude of the spike.

The new card launches don’t resolve the question either. Wells rolled out a Private Bank Visa Infinite and Autograph Premier this quarter, both targeting high-income and private banking clients through tight underwriting and limited distribution. These are relationship-deepening products, not intended for the mass-market. The audience is simply too small to generate 200,000-plus incremental accounts in a single quarter. And if premium cards were driving the growth, you’d expect higher spend per account. That’s not showing up in the numbers.

So the real question heading into Q2 is whether spend starts to move. If it does, this quarter looks like the early signal of a more deliberate push into card acquisition.

We’re digging into this further on the next episode of The Free Toaster News Pod later this week.

Reach the Borrowers Others Miss.

Get Qualified Borrower Leads

JPMorgan Reports Record Q1 2026: $16.5B Profit Amid Robust Growth

JPMorgan posted $16.5B in net income for Q1 2026, up 13% year-over-year, on managed revenue of $50.5B. Average loans grew 11% YoY, card sales volume jumped 9%, and the Card Services net charge-off rate held at 3.47%. Card Services & Auto revenue hit $7.8B, up 13%, driven by higher revolving balances. The Payments business brought in $5.1B, up 12%, on deposit growth and fee expansion. Active mobile customers grew 7% YoY, and the bank opened over 450,000 net new checking accounts in the quarter. CEO Jamie Dimon credited broad-based performance across the franchise, noting that "we continued to acquire new customers at a robust rate," but was measured on the macro outlook: "There is an increasingly complex set of risks, such as geopolitical tensions and wars, energy price volatility, trade uncertainty, large global fiscal deficits and elevated asset prices." (JPMorgan Chase & Co.)

Citi Q1 2026: Cards and Payments Fuel $5.8B Net Income Surge

Citigroup’s Q1 2026 numbers came in strong: $5.8B in net income, up 42% year-over-year, on $24.6B in revenue. The card business is the number to watch. U.S. Consumer Cards pulled in $4.8B in revenue and opened nearly 2.95 million new accounts in the quarter, while net credit losses dropped 11% YoY on improved performance across both general purpose and private label portfolios. Spend volume was up 5% and returns came in just under 20%. On the payments infrastructure side, Treasury and Trade Solutions hit $4.6B, up 17%, with commercial card spend up 8% and cross-border transaction value growing 12%. CEO Jane Fraser described it as “an exceptionally strong start,” noting that “U.S. Consumer Cards saw 4% revenue growth and returns of nearly 20%.” One deal worth flagging for anyone tracking co-brand distribution: the forward purchase commitment of the Barclays American Airlines card portfolio drove a meaningful portion of the ACL build this quarter, suggesting Citi is still actively expanding its co-brand footprint even as others pull back. (Citi)

News Pod #13 - Experian No Ding Decline, American + Citi CoBrand, and Cash App P2P News

In the latest episode of The Free Toaster, Carlos and Nick welcome Capital One veteran Amanda Braslow to break down Experian’s massive “no-ding” expansion into personal loans and why 40% of marketplace volume has already shifted to these rails. The crew dissects the Citi and American Airlines exclusive renewal as a high-stakes play for premium lounge dominance and reacts to Cash App bringing BNPL to P2P transfers.

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

JetBlue and Barclays Add Companion Passes and Status Accelerators to Premier Card

JetBlue and Barclays added several statement credits and status accelerators to the JetBlue Premier World Elite Mastercard while maintaining the $499 annual fee. Cardmembers now receive a 25-tile bonus annually. This deposit completes 50% of the requirements for Mosaic 1 status. The update introduces a tiered companion pass system where $15,000 in annual spend earns a credit up to $500. Spending $75,000 unlocks an additional credit worth up to $1,500. JetBlue also added a 15% redemption rebate on TrueBlue points for award flights and up to $300 in annual credits for TrueBlue Travel bookings. A new partnership with ClassPass provides up to 14 monthly credits for fitness and wellness services. These changes coincide with the airline's expansion of its BlueHouse lounge network. A second location opens at Boston Logan International Airport this summer following the recent opening at JFK. (JetBlue)

NFL and U.S. Bank Expand 20-Year Relationship with Official League Sponsorship

The NFL named U.S. Bank its official bank and wealth management sponsor in a new multi-year agreement. The bank becomes the presenting sponsor of the Super Bowl MVP Award starting with Super Bowl LXI. It also takes a top-tier sponsorship role for the NFL FLAG Championships. The partnership centers on U.S. Bank Financial Edge, a program providing financial education to players regarding cash flow and long-term wealth. Prospect Fernando Mendoza will advise the bank on tailoring these services for athletes navigating NIL contracts. Both organizations will launch a joint corporate social responsibility initiative in the coming months. This deal formalizes a relationship between the two entities that has lasted over 20 years. (US Bank)

Upcoming Toaster Events:

CardCon, April 21-23, 2026 - Amanda, Toaster’s GM of Events, will be at CardCon in Phoenix, Arizona, before heading to The Fintech Summit on April 28, 2026, as part of the action-packed Fintech Week NYC. Whether you are looking to talk shop, explore new partnerships, or simply catch up over coffee, we invite you to connect with us during these events. Contact amanda@thefreetoaster.com

Eliminating Funnel Friction, Private Dinner, April 27th in NYC - We’re hosting a curated dinner in New York City. Our objective is simple: facilitate a high-level exchange on what’s actually working to eliminate friction in your marketing funnel. No presentations. No conference booth vibes. Just 15 marketers, great food, and candid discussion on smart design and better tech to convert your customers. Learn more about the event here.

Bummed about missing CardCon this year? Join Jason Steele, founder of CardCon, and a select group of credit card marketing leaders to talk industry trends at an executive luncheon in NYC on May 6th. If interested, reach out at: jasondsteele@gmail.com.

loanDepot Integrates Figure Underwriting to Launch 5x5 HomeLoan Product

loanDepot and Figure Technology Solutions launched the 5x5 HomeLoan, a digital product offering mortgage approvals in five minutes and funding within five to seven days. loanDepot is a national retail lender that has funded $577 billion to consumers and operates a sales force of 1,800 licensed loan officers. The company integrated Figure’s blockchain-based underwriting engine into its mello technology platform to automate credit decisions. This partnership allows loanDepot to offer purchase, refinance, and equity lines ranging from $25,000 to $750,000 across all 50 states. The product eliminates appraisal fees, standard title costs, and standard closing costs for borrowers. Management expects the integration to reduce the cost to produce loans and increase market share. The loans feature fixed or variable rates with no prepayment penalties. (loanDepot)

Atlas Raises $40M to Pivot From Failed Debit Startup to $420M Billionaire Charge Card

Atlas closed a $40 million Series C funding round at a $420 million valuation led by Elad Gil and Verified Capital. The company operates a high-end charge card with a $999 annual fee and a text-based concierge service for travel and dining. This pivot follows the collapse of the founder's previous startup, Point, which lost its entire customer base after Column ended their banking partnership in 2022. Internal data showed 15% of users drove 90% of transaction volume, prompting the shift from mass-market debit cards to ultrawealthy spenders. Atlas now reports a gross revenue run-rate exceeding $20 million with approximately 2,000 customers. The business model relies on annual fees, 2% interchange fees, and commissions from hotel and airline bookings. Lead Bank currently provides the underlying banking infrastructure. The company competes with the American Express Centurion and JPMorgan Reserve cards by focusing on high-touch service rather than traditional reward points. Current investors include Eric Schmidt, Marathon, and 01 Advisors. (Forbes)

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.

Other News We’re Reading and Listening to

(Credit Card) Fed Data Signals Consumers Pulling Back on Credit Card Spending (PYMNTS)

(Lending) loanDepot Partners with Figure to Offer Express Path Loan Products to loanDepot Customers (loanDepot)

(Lending) Pagaya Issues AAA-rated $600 Million Personal Loan ABS Transaction (Pagaya)

(Lending) DuPage Credit Union Selects Upstart For Personal Lending (Upstart)

(Personal Finance) Computer Is Now Your Personal CFO (Perplexity AI)

(Credit) VantageScore Launches RiskRatio™ For Credit Benchmarking (VantageScore)

(AI/Shopping) Visa Opens The Door To AI-Driven Shopping For Businesses Worldwide (Visa)

(Credit) ClearScore Launches New Technical Standard For Agentic Credit Broking (FinTech Futures)

(Banking) Nymbus Launches Industry-Leading, Secure MCP Server For AI-Driven Core Banking Actions (Nymbus)

(Payments) New Loop Partners With Mastercard To Enable Seamless Payments For A Reusable Takeaway Packaging Return System (Mastercard)

(Fintech) Payments Fintech Pepper Pay Declares Bankruptcy (American Banker)

(AI/Banking) Ask, And AIR Makes It Happen (Revolut)

(Credit/AI) Moody’s Brings Credit And Compliance Workflows Directly Into Anthropic’s Claude (Moody’s)

(Payments) PayPal Embeds Payment Links Into Canva Designs (PYMNTS)

(Banking) Citigroup Says AI Helps Speed Account Openings And Systems Upgrades (Reuters)

(BNPL) Velera Wants Consumers To Turn To Credit Unions For BNPL (Velera)

(Financial Health) A Billion Connected: How We’re Empowering Even More People On The Road To Financial Health (Mastercard)

(Payments) Ahold Delhaize USA Introduces Pay By Bank Partnership With Fiserv To Expand Digital Payment Options For Online Grocery Orders (GlobeNewswire)

(Lending) Experian’s First-Of-Its-Kind Self‑Service Digital Onboarding Platform Helps Small Lenders Pull Credit Reports Quickly And Efficiently (Experian)

(Lending) Braviant Holdings Closes Two Revolving Asset-Backed Credit Facilities And A Forward Flow Facility (PR Newswire)

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

https://www.thefreetoaster.com/p/wells-fargo-books-631000-new-credit

Catch you next week,

The Free Toaster Team

Experian Expands “No Ding Decline” Feature to Personal Loans

Wed, 08 Apr 2026 20:02:43 GMT

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)

Sponsored by Fintel Connect

Webinar Alert - ROI for Financial Marketers: What to Measure (and What Not to Chase) in 2026

Join leaders from Fintel Connect, Vested, and Axos Bank for an interactive discussion on how financial marketers should be measuring ROI in 2026 and which metrics are no longer worth chasing. As AI reshapes discovery and performance becomes harder to prove, understanding what truly drives growth has never been more critical.

You’ll Learn

Which metrics actually define ROI—and which ones to move away from
How AI-driven discovery is impacting visibility, trust, and performance
Smarter ways to measure partner and publisher contribution beyond last-click
How to connect marketing efforts to real revenue (qualified volume, funding rates, blended CAC)
Practical frameworks for reporting performance that stand up to executive scrutiny

Whether you're a CMO, Head of Growth, or affiliate marketer in financial services, this webinar will show you how to measure marketing ROI more clearly in 2026.

Reserve Your Spot Now

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:

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

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.

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

SoFi Adds $3.6B in Commitments to Loan Platform Business

Wed, 01 Apr 2026 20:05:44 GMT

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.

Sponsored by Spinwheel

With many happy customers, including:

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

Images from American Banker and Step

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

Chart developed by Bloomberg based on data from New York Fed.

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.

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

Klarna Card Adds 270,000 Cardholders Monthly 🤯

Wed, 25 Mar 2026 20:42:32 GMT

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)

Reach the Borrowers Others Miss.

Get Qualified Borrower Leads

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.

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

Upstart Applies for National Bank Charter to Simplify Lending Infrastructure

Wed, 18 Mar 2026 20:27:41 GMT

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

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

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!

Sponsored by Fintel Connect

Webinar Alert: From Google to Generative AI: How Financial Brands Win in the New Age of Search

Join leaders from LPL Financial, New Media Advisors, and Fintel Connect for an interactive, executive-level discussion on how financial brands are winning in the new age of generative AI—and what it takes to protect acquisition performance.

Financial brands are under pressure to acquire new customers, defend share of voice, and prove ROI. AI is reshaping discovery: research now happens inside generative summaries, shortlists form before the click, and visibility is increasingly decided upstream. Teams that ignore this risk losing their voice—and their next customers.

If you lead marketing, product, or growth at a financial institution—or AI-driven customer acquisition is on your 2026 roadmap—this is the session you can’t afford to miss this quarter.

You’ll learn:

What financial institutions need to do now to stay competitive as search becomes AI-driven
How to think about generative search: replacement or evolution of Google
Whether to shift budget away from Google—or double down on foundational visibility work
How authority and third-party signals impact AI-driven brand discovery

This interactive webinar delivers practical insights and real-world examples to help future-proof your growth strategy and win in the new age of search.

Reserve Your Spot Now

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)

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

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?

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

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

How Dave Scaled to $163.7M in Q4 Revenue After Nearly Being 'Left for Dead'

Wed, 11 Mar 2026 20:00:55 GMT

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.

Sponsored by Spinwheel

With many happy customers, including:

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?

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

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:

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

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.

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

Can NerdWallet Outrun the AI Disruption?

Wed, 04 Mar 2026 19:46:37 GMT

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.

Sponsored by Fintel Connect

Your Next Customer Relies on LLMs for Financial Advice - Is Your Financial Brand Showing up?

Fintel Connect’s first-of-its-kind report, “Competing for Visibility in the Age of AI“ reveals how large language models (LLMs) - including ChatGPT, Gemini, Perplexity, and Copilot are transforming how consumers discover, compare, and choose financial products. Consumers aren’t clicking through search results anymore - they’re asking LLMs for answers. And who gets cited matters more than ever.

In this report, you’ll learn:

Affiliate dominance: Over 60% of AI-sourced financial content comes from affiliates like NerdWallet and Bankrate.
Model differences: Gemini prioritizes bank content (72%), while ChatGPT, Copilot, and Perplexity rely heavily on affiliates.
New visibility tactics: Generative Engine Optimization (GEO) strategies to optimize brand presence in AI-powered search.
Zero-click behavior: Affiliates are now the gatekeepers of visibility as consumers increasingly get answers without clicking.

Why it matters: Whether you’re a marketing leader, affiliate manager, or growth executive, this report breaks down how to position your financial brand to be discovered, cited, and trusted - with actionable strategies to ensure your financial institution shows up where it matters most: when customers are ready to engage and convert.

Access the full report now

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)

Want To Host An Industry Event?

The Free Toaster is betting big on live events in 2026.
If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. Think coffee meetups, lunches, dinners, 1-day events, golf outings, wine tastings.
Our events team can help you bring it to life. Contact amanda@thefreetoaster.com for more information.

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)

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

Sources: Block, Chime, LendingTree, Sezzle

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.

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)

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

https://www.thefreetoaster.com/p/can-nerdwallet-outrun-the-ai-disruption

Catch you next week,

The Free Toaster Team

Apple Just Put BNPL Into 65 Million Apple Pay Wallets

Wed, 25 Feb 2026 20:38:06 GMT

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

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

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

With many happy customers, including:

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.

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 12pm ET on Fridays - let us know!)

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)

Want To Reach Our Readers In Person?

The Free Toaster is betting big on live events in 2026.
If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. Think coffee meetups, lunches, dinners, 1-day events, golf outings, wine tastings.
Our events team can help you bring it to life. Contact amanda@thefreetoaster.com for more information.

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)

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 accelerate your affiliate marketing? Chat with New Market Growth

Sources: Block, Klarna, Upbound

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.

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)

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

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

Catch you next week,

The Free Toaster Team

Cash App to Sell its Credit Score

Thu, 19 Feb 2026 00:26:05 GMT

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:

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.
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!

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)

Want To Reach Our Readers In Person?

The Free Toaster is betting big on live events in 2026.
If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. Think coffee meetups, lunches, dinners, 1-day events, golf outings, wine tastings.
Our events team can help you bring it to life. Contact amanda@thefreetoaster.com for more information.

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)

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 accelerate your affiliate marketing? Chat with New Market Growth

Sources: Adyen

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.

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)

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

https://www.thefreetoaster.com/p/cash-app-to-sell-its-credit-score

Catch you next week,

The Free Toaster Team

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

Wed, 11 Feb 2026 21:16:15 GMT

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

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!

— 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!

With many happy customers, including:

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.

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!)

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)

Want To Reach Our Readers In Person?

The Free Toaster is betting big on live events in 2026.
If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. Think coffee meetups, lunches, dinners, 1-day events, golf outings, wine tastings.
Our events team can help you bring it to life. Contact amanda@thefreetoaster.com for more information.

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)

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 accelerate your affiliate marketing? Chat with New Market Growth

Sources: Pagaya, OneMain Financial, Upstart, Dave

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.

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)

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

https://www.thefreetoaster.com/p/moneylions-40-growth-outpaces-gen

Catch you next week,

The Free Toaster Team

WTF 2026 - Since When is Debit NOW Credit!?

Wed, 04 Feb 2026 21:36:01 GMT

Hey Toaster Readers,

This week is sponsored by our friends at Fintel Connect.

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

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

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.

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)

Want To Reach Our Readers In Person?

The Free Toaster is betting big on live events in 2026.
If you’d like to sponsor or host an event in the consumer lending community in 2026, we’d like to hear from you. Think coffee meetups, lunches, dinners, 1-day events, golf outings, wine tastings.
Our events team can help you bring it to life. Contact amanda@thefreetoaster.com for more information.

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)

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 accelerate your affiliate marketing? Chat with New Market Growth

Sources: American Express, LendingClub, SoFi

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.

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)

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

https://www.thefreetoaster.com/p/wtf-2026-since-when-is-debit-now

Catch you next week,

The Free Toaster Team

Affirm Submits FDIC Application Through ILC

Wed, 28 Jan 2026 19:39:41 GMT

Hey Toaster Readers,

This week is sponsored by our friends at Spinwheel.

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

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

With many happy customers, including:

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)

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

Be sure to check out out our latest pod!

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)

Enjoying this week’s issue?

If you’ve been enjoying The Free Toaster, help us spread the word. Forward it to someone who lives and breathes consumer lending, marketing, or fintech like you do.

Your shares help us reach more builders in consumer lending, and help us make the Newsletter & Podcast better every day.

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)

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 accelerate your affiliate marketing? Chat with New Market Growth

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)

Looking for hiring signals too?

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

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)

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

https://www.thefreetoaster.com/p/affirm-submits-fdic-application-through

Catch you next week,

The Free Toaster Team

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

Thu, 22 Jan 2026 00:20:30 GMT

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

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

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)

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)

Enjoying this week’s issue?

If you’ve been enjoying The Free Toaster, help us spread the word. Forward it to someone who lives and breathes consumer lending, marketing, or fintech like you do.

Your shares help us reach more builders in consumer lending, and help us make the Newsletter & Podcast better every day.

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)

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 accelerate your affiliate marketing? Chat with New Market Growth
Need to win on other growth channels? Chat with FIAT Growth

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)

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

https://www.thefreetoaster.com/p/cash-apps-invisible-200-billion-loan

Catch you next week,

The Free Toaster Team

SMBC Ends Jenius Bank’s U.S. Operations

Wed, 14 Jan 2026 17:37:11 GMT

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

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

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)

Enjoying this week’s issue?

If you’ve been enjoying The Free Toaster, help us spread the word. Forward it to someone who lives and breathes consumer lending, marketing, or fintech like you do.

Your shares help us reach more builders in consumer lending, and help us make the Newsletter & Podcast better every day.

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)

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 accelerate your affiliate marketing? Chat with New Market Growth
Need to win on other growth channels? Chat with FIAT Growth

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)

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

https://www.thefreetoaster.com/p/smbc-ends-jenius-banks-us-operations

Happy New Year!

Catch you next week,

The Free Toaster Team

Apple Card’s Next Chapter Starts at JPMorgan

Wed, 07 Jan 2026 23:52:53 GMT

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

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

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)

Enjoying this week’s issue?

If you’ve been enjoying The Free Toaster, help us spread the word. Forward it to someone who lives and breathes consumer lending, marketing, or fintech like you do.

Your shares help us reach more builders in consumer lending, and help us make the Newsletter & Podcast better every day.

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)

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

And, please check out our sponsors:

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)

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

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.

The Free Toaster: News

With Plaid Integration, ChatGPT is now a distribution channel for personal finance.

Hey Toaster Readers,

Toaster Exclusive Event

Learn more at: events.thefreetoaster.com

ChatGPT Is Now a Distribution Channel For Financial Products

What Actually Happened

Intuit’s Role In All Of This

Who Should Feel Threatened?

The New Competitive Landscape

What Distribution Channels Survive The LLM Disruption

Closing Thoughts

Sponsored by Spinwheel

News Pod #18 - NerdWallet’s Q1’26 Earnings: Why Is The Stock Down 30%

Looking for a new role?

Other News We’re Reading

NerdWallet's Q1 '26 Earnings: Why Is The Stock Down 30%?

Hey Toaster Readers,

Save the date!

Breaking Down NerdWallet’s Earnings

One auto insurance carrier flinched and the full-year guidance changed.

SMB is down 15% and nobody on the call seemed to care.

“Organic search headwinds” is doing a lot of heavy lifting.

The margin beat had a Super Bowl-sized asterisk on it.

“Vertical integration” sounded more defensive than offensive.

You partner with, or are considering partnering with NerdWallet. Now what?

Action items:

At the highest level, we empathize with NerdWallet’s struggles.

Sponsored by New Market Growth

Earnings

Other News We’re Reading and Listening to

SoFi’s Best Quarter Yet Disappoints Wall St.

Hey Toaster Readers,

SoFi’s Best Quarter Yet Disappoints Wall St.

TOASTER’S TAKE

Sponsored by Bulldog Media Group

Reach the Borrowers Others Miss.

Experian Launches Agent Trust to Verify AI-Driven Transactions

Stripe Powers Checkout Inside Google’s AI Mode and Gemini

OneMain Financial Reports Strong Q1 2026 Results with $226M Net Income

E048 - Q&A on Application Friction - Nick interviews Carlos

Synchrony Becomes Exclusive Issuer for Lowe’s Commercial Co-Brand Card

Barclays Completes Acquisition of Best Egg Personal Lending Platform

Upcoming Toaster Events

PayPal Splits into Three Units and Makes Venmo a Standalone Division

Looking for a new role?

Other News We’re Reading and Listening to

OnePay Launches (Credit) Builder Card

Hey Toaster Readers,

OnePay Launches Builder Card: No Deposit, No Credit Check, No Fees

Sponsored by Fintel Connect

Is Your Marketing ROI Falling Behind Other Banks and Credit Unions?

Credit One Bank and Bright Money Partner to Launch Embedded Credit Card Tools

Aven Launches Bitcoin-Backed Visa Card With Up To $1M Credit Limit

LendingClub’s $2.67B Originations and the Rebrand

News Pod #15 - OpenAI Acquires Hiro Finance

TransUnion Q1 2026: 14% Growth Fueled by U.S. Lending Surge

Amex Reports 11% Revenue Increase and Record Card Member Spend

Capital One Reports $2.2B Net Income Amid Discover Acquisition Gains

The Toaster team is on the ground in NYC for Fintech Week.

Upcoming Toaster Events:

Equifax Posts 14% Revenue Growth in Q1; Maintains Conservative 2026 Outlook

Cash App Targets Gen Alpha With Parent-Managed Accounts for Kids 6-12

American Express Integrates Resy into Anthropic’s Claude for Real-Time Reservations

Looking for a new role?

Other News We’re Reading and Listening to

OpenAI Doubles Down: Hiro Finance Marks Second Fintech Buy in Six Months

Hey Toaster Readers,

OpenAI Doubles Down on Fintech with Hiro Finance and Roi Acquisitions

Toaster’s Take

Sponsored by Spinwheel

LendingClub to Become Happen Bank, “a Digital Bank for People Going Places”

Mission Lane Credit Card Startup Applies For Bank Charter

News Pod #14 - Wells Fargo Books 631,000 New Credit Card Accounts in Q1 2026 - How Did They Do It?

FinWise Bancorp Partners with Vera, Inc. to Launch Unsecured Consumer Credit Card Program

Synchrony Launches Integrated Credit Card Program for RH

Upcoming Toaster Events:

CarParts.com Introduces the CarParts.com Mastercard®

Sezzle Canada Launches Virtual Card, Expanding Buy Now, Pay Later Capabilities

Looking for a new role?