Karta’s Credit Card Launch, Visa’s Onchain Push, and the Latest Q3 Earnings Recap
Plus, Visa builds the rails for onchain lending, SVB spotlights new openings for digital lenders, and Citi joins the credit card race with American Airlines.
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Fintechs are finding new momentum in credit and lending. Karta came out of stealth with a $5.4 million seed round and the first U.S. premium credit card for global non-residents, managed entirely through WhatsApp. Visa outlined its plan to build the rails for “onchain finance,” connecting traditional lenders to decentralized markets.
Silicon Valley Bank’s new fintech report shows credit tightening and delinquencies rising, yet digital lenders may benefit as consumers look for flexible refinancing options. Citi and American Airlines rolled out a new travel rewards card, and Rakuten is evaluating a U.S. IPO for its credit card unit.
You’ll also find fresh funding rounds and Q3 results from Wells Fargo, Amex, and JPMorgan in this week’s Growth Tracker: Earnings and New Investments.
Here’s what’s happening across fintech right now.
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Karta Officially Launches First U.S.-issued Premium Credit Card Designed for Global Non-Residents with a U.S. Bank Account
Source: Karta
Karta, the first and only U.S.-issued premium credit card designed for global non-residents with a U.S. bank account, officially launched after coming out of stealth mode and immediately partnered with "more than a dozen" U.S. financial institutions to offer the card to their high-net-worth clients. The company, which lets customers apply and get approved in minutes without needing an SSN or ITIN, is solving a common problem where non-residents with millions in the bank could not previously get a premium U.S. credit card. Karta also secured a $5.4 million seed round from Canary, Clocktower Ventures, and FJ Labs and plans to use the funds to grow its team and expand its footprint. As a premium Visa card, it offers all the expected benefits, including points, no FX fees, and the ability to build U.S. credit history. What's especially cool? Karta is the first credit card managed entirely through WhatsApp, leveraging AI agents to offer clients 24/7 service, from real-time account inquiries to fraud reporting. Finally, founders Freddy Juez and Orlando Espinoza bolstered their team by hiring Fernando Dalceggio, the former head of acquisition and new business development for AMEX International Dollar Cards. [Karta Inc.]
Exclusive: Japan's Rakuten Weighing US IPO of Credit Card Business, Sources Say
Japan's e-commerce and finance giant, Rakuten, which has a massive web of businesses including its popular credit card service, is reportedly "weighing" a potential U.S. initial public offering for its credit card unit, Rakuten Card. The company, which already listed its banking arm in Tokyo, began considering a U.S. listing last month, partly prompted by rival SoftBank's plans to list its mobile payment operator, PayPay, in the States. Rakuten Card shook up the Japanese finance sector by simplifying credit card applications and has issued more than 30 million cards in Japan. This consideration for a U.S. IPO, still in the "early stages," also includes the alternative option of a stake sale to a strategic buyer. The move aligns with a global trend of companies seeking "higher valuations" through the bustling U.S. IPO market. [Reuters]
American Airlines and Citi Launch the Citi / AAdvantage Globe Mastercard
Source: Citi
American Airlines, Citi, and Mastercard just launched the Citi / AAdvantage Globe Mastercard, a new mid-tier travel rewards credit card that redefines the category with access to premium benefits. Designed for the traveler who wants more than the occasional vacationer but isn't a frequent flyer, the card provides "over $750 in value" for a $350 annual fee. Cardmembers immediately receive four 24-hour Admirals Club Globe passes, a first for a mid-tier card, alongside a Companion Certificate redeemable for $99 plus taxes. It features an industry-leading Flight Streak bonus, rewarding cardmembers with 5,000 Loyalty Points after every four qualifying American Airlines flights for up to "15,000 additional Loyalty Points" per year, helping them achieve AAdvantage status faster. The card also offers accelerated earning across dining, rideshares, hotels, and American Airlines purchases, including "6X AAdvantage miles on eligible AAdvantage Hotels bookings". This new offering fills a gap in the existing co-branded portfolio and represents the first major product launch since the expansion of the American Airlines and Citi partnership. [Citi Group]
SVB’s Future of Fintech Report 2025: Credit Stress Creates Openings for Fintechs
Source: Silicon Valley Bank’s Future of Fintech Report 2025
Silicon Valley Bank’s Future of Fintech Report 2025 points to a shifting credit landscape. Delinquencies have climbed from pandemic lows but remain within historic ranges. The exception is student loans, where missed payments have reached all-time highs following the end of federal payment deferrals. Americans under 40 owe about 1.2 trillion dollars in student debt, more than any other debt category, and more than half report difficulty paying bills.
With finances tightening, credit quality is eroding. More accounts have been closed than opened in the past two years, and average credit scores are falling at the fastest pace since the financial crisis. At the same time, credit card rates have surged while personal loan rates have stayed relatively stable, widening the gap between the two products.
That widening spread may shape how consumers borrow in 2025. If borrowers grow more rate sensitive, fintech lenders offering personal loans, refinancing tools, or installment options may see stronger demand from households looking for practical relief. [SVB]
Visa Says It Wants to Build the Rails for Lending in ‘Onchain Finance,’ Its New Name for DeFi
Visa, the company behind the world's largest payment network, just dropped a whitepaper where it's looking to become the infrastructure for lending in the world of decentralized finance, which they've rebranded as "onchain finance". The move is all about getting institutional heavyweights like banks and private credit funds to plug into decentralized credit protocols by supplying the data, compliance, and infrastructure that make it all viable. This isn't just a pivot to institutional infrastructure, it's a recognition of the "onchain finance" market, which has already issued "more than $670 billion in stablecoin loans" since 2020, with lending activity hitting new highs in mid-2025. Visa isn't planning to issue tokens or fund loans directly; it's an infrastructure play focused on owning the "rails" like APIs and analytics. The payment network is simply looking to facilitate connections between the traditional financial world and programmable credit, much like it did for card payments. Morpho, Credit Coop, and Huma Finance are already illustrating how stablecoin-based credit is functioning at scale. [Yahoo! Finance]
Plaid LendScore: Unlocking Insights Never Used Before in Credit Scoring
Source: Plaid
Plaid, the company that securely connects consumers' bank accounts to thousands of financial apps, just launched Plaid LendScore, a new credit risk score aiming to fix the problem of outdated credit decisions. This innovative score leverages real-time cash flow and exclusive "network insights" from the company's massive platform to paint a complete financial picture of a borrower, basically telling a lender your financial story right now. Instead of solely relying on history, Plaid trained its first model, LS1, on a "nearly one billion transactions" dataset to predict the likelihood of default in the next year. The early results are already paying off big time: lenders using the score saw a "25% lift in predictive performance" and secured a "10–20% relative risk reduction" for riskier subprime and near-prime borrowers. For instance, the model can spot emerging risks, like a consumer using four or more earned wage access apps at once, which makes them 22% more likely to default—an insight the old scores miss entirely. Ultimately, Plaid is delivering "tools to assess creditworthiness with greater precision, speed, and context," expanding responsible credit access for millions in the new era of open banking. [Plaid]
Inside the Credit Card Battle to Win America’s Richest Shoppers
The battle for America's wealthiest consumers is heating up as premium credit card issuers like American Express Co. and JPMorgan Chase & Co. escalate their perks and fees. The intense competition played out publicly at the US Open, where both Amex and Chase built elaborate, exclusive lounges and experiences to court affluent tennis fans. Since the summer, Chase hiked the annual fee on its Sapphire Reserve card from $550 to $795, and Amex raised its Platinum card's fee from $695 to $895. Citigroup Inc. jumped back into the premium fray with the $595 Strata Elite, proving the “race for enrollment” is on with lavish sign-up bonuses and perks like private dinners, free clothes, and airport lounge access. Issuers focus on the rich because the top 10% of US households now account for nearly half of the country's consumer purchases, making them a profitable target despite paying off their balances. Furthermore, younger generations like millennials and Gen Z are a key focus, as Amex reports that 75% of new applicants for its Platinum and Gold cards are from these groups. [Bloomberg]
JPMorgan Says Consumers Are Resilient, Flags Tricolor Impact on Credit Losses
JPMorgan kicked off earnings season with third-quarter results that showed consumer and small business resilience, as debit and card sales volumes were up 9% year over year. The banking giant's Chief Financial Officer, Jeremy Barnum, said credit performance remains in line with expectations and early-stage delinquencies are stable, though the bank slightly adjusted its long-term deposit growth projections due to lower personal savings rates and "robust" consumer spending. However, the bank recorded $3.4 billion in credit costs, which included a $170 million hit in charge-offs related to the bankruptcy of subprime auto lender Tricolor Holdings. CEO Jamie Dimon admitted the Tricolor collapse was "not our finest moment" and warned about the potential for more "cockroaches," suggesting fraud played a part. Despite this one-off, JPMorgan remains "quite confident" about the overall long-term trajectory and the stability of its exposure to non-depository financial institutions (NDFIs). [PYMNTS]
‘Finances Are Getting Tighter’: US Car Repossessions Surge as More Americans Default on Auto Loans
Source: The Guardian
The US auto lending market is flashing "alarm bells" as car repossessions surge, highlighting strain in lower-income households' finances. The recent bankruptcies of sub-prime auto lender Tricolor and auto parts supplier First Brands are putting the finance industry on edge, leading JPMorgan Chase CEO Jamie Dimon to ominously caution analysts with the phrase: "When you see one cockroach, there are probably more." Car repossessions hit their highest level since 2009 last year, as the high cost of cars now requires 42 weeks of income to pay off, up substantially from before the pandemic. Experts view distress in auto lending as an economic bellwether, since a car is essential for working, and the rise in defaults indicates that "household finances are getting tighter." Loan operators are now offering a "massive amount" of loan modifications to delay repossessions, but this may only be buying time as consumers are stuck with loan payments they simply cannot afford. [The Guardian]
Corporate America Family Credit Union Selects Upstart for Personal Loans, HELOCs and Auto Refinance Loans
Corporate America Family Credit Union (CAFCU), a member-owned, not-for-profit financial cooperative, has teamed up with Upstart, the leading AI lending marketplace, to offer personal loans, HELOCs, and auto refinance loans to more consumers. CAFCU President/CEO Stefanie Rupert explained that the credit union is extending its commitment to financial success by partnering with Upstart for a modern, online lending experience that aims to be "more accessible, and more equitable for all." The partnership kicked off in September 2025 with personal loans via the Upstart Referral Network, which directs qualified applicants from Upstart to a co-branded CAFCU experience. The credit union will soon expand its offerings to include HELOCs and auto refinance loans, and it is already purchasing portfolios of HELOCs from Upstart’s affiliate. Michael Lock, Senior Vice President of Lending Partnerships at Upstart, is "thrilled" about the collaboration, noting that the AI-powered platform will help CAFCU offer a fast, all-digital lending experience to reach more people. [Upstart]
Credit Card Delinquencies Climb as Consumers’ Savings Dip
The latest VantageScore Credit Gauge reveals that while the average American consumer remains "credit healthy," early-stage delinquencies are climbing across all credit products, hitting 1.04% in February—the first time that figure has exceeded 1.0% in four years. Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore, noted that the situation is creating a "more pronounced" "tale of two consumers," where Superprime consumers are still spending while Subprime borrowers are finding it increasingly difficult to stay current on their payments. This credit stress comes as consumers draw down their savings to cover expenses; the personal saving rate fell from 4.1% in January to a lower 3.6% in February. Personal loan originations fell the most as lenders enacted tighter requirements, but auto loans saw a slight increase, driven by high inventory and promotions. Overall, the implication is that consumers are "drawing down their savings" to manage their debt burdens and maintain their spending habits. [PYMNTS]
Growth Tracker: Earnings and New Investments
Wells Fargo reports third quarter 2025 net income of $5.6 Billion. CEO Charlie Scharf said spending on debit and credit cards continued to increase, while auto loan originations showed strong growth from a year ago. [Well Fargo]
American Express Q3 2025 revenue rose 11% year over year to a record $18.4 billion, while earnings per share increased 19% to $4.14. CEO Stephen Squeri highlighted “strong early demand and engagement” for the new Platinum Card lineup, with account acquisitions doubling pre-refresh levels. [American Express]
Bank of America posted third-quarter net income of $8.5 billion, or $1.06 per diluted share, up 31% from last year, driven by higher interest income, stronger investment banking fees, and steady loan growth. CEO Brian Moynihan highlighted the “earnings power of our diversified model,” noting that revenue growth outpaced expenses. [Bank of America]
Ally Financial reported third-quarter net income of $371 million, up 117% year over year, with earnings per share rising to $1.18 from $0.55. CEO Michael Rhodes cited “clear proof points of progress toward improved returns,” pointing to record dealer engagement and rising profitability in core segments. [Ally Financial]
Synchrony Financial posted third-quarter 2025 net earnings of $1.1 billion, or $2.86 per diluted share, up 37% year over year. CEO Brian Doubles credited the results to stronger spend trends “across credit grades and generations” and noted that underwriting discipline has “primed the business for strong risk-adjusted growth.” [Synchrony]
JPMorgan Chase posted third-quarter net income of $14.4 billion, or $5.07 per share, up 12% year over year, on managed revenue of $47.1 billion (+9%). CEO Jamie Dimon said the quarter reflected “strong performance across all lines of business,” citing record $9 billion in Markets revenue, a 16% rise in investment banking fees, and a 9% increase in debit and credit card sales. [JPMorgan Chase]
Zip Co reported record quarterly cash earnings of $46 million, up 219% year over year, with total transaction volume rising 36% to $3.3 billion. CEO Cynthia Scott said Zip’s momentum “reflects the resilience of our model and disciplined execution across both markets.” [Zip]
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Other News We’re Reading
(Cards) Amex Downplays Shutdown Impact [Payments Dive]
(Telematics) Cambridge Mobile Telematics Partners With TransUnion to Empower Drivers to Monitor, Manage and Get Rewarded for Safer Driving [CMTelematics]
(Fintech) Exclusive: Stripe-Backed Blockchain Startup Tempo Raises $500 Million Round Led by Joshua Kushner’s Thrive Capital and Greenoaks [Fortune]
(Credit) TransUnion Introduces New Mortgage Credit Offerings Leveraging Powerful Data – Delivering Lender Choice, Certainty and Homebuyer Savings [TransUnion]
(AI) Equifax Introduces Equifax Ignite® AI Advisor [Equifax]
(Payments) Klarna Launches Flexible Debit Card and Digital Wallet in UK [Klarna]
(BNPL) FreshBooks and Affirm Partner to Bring Buy Now, Pay Later Options to Small Business Owners [FreshBooks]
(Funding) Fintech Glow Raises $65 Million Backed by Apollo, ‘Cable Cowboy’ Malone [Bloomberg]
(Funding) Fintech Upgrade Raises $165 Million, Targets IPO in 12 to 18 Months [Reuters]
(Fintech) Fintech Firm SoFi Plans 225-Job North Carolina Expansion [WRAL]
(Acquisition) Ripple Pays $1 Billion for GTreasury to Enter Corporate Treasury [Bloomberg]
(AI) Piere Announces $2.1M to Scale AI Platform That Executes Financial Decisions Automatically [Financial IT]
(Security) Prosper Confirms Data Breach Impacting 17 Million Users [TechRepublic]
(AML) Dollarize Selects Flagright to Power Real‑Time Transaction Monitoring and Risk‑Based AML [Flagright]
(B2B Payments) Brex Announces Partnership With Oracle as First Fintech Global Issuer to Power B2B Payments in Oracle Fusion Cloud ERP [Brex]
(Consumer) What Shopper Resiliency Means for Holiday Shopping [Forbes]
(Lending) The Impact of Fintech on Lending [CEPR]
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Welcome to The Free Toaster! The newsletter for marketing pros at fintechs, banks, and lenders.
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Carlos Caro is the founder of New Market Growth, an agency that helps lenders build affiliate programs.
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