Ready to Hand Your Wallet to an AI? Google and Mastercard Are Betting On It.
Plus, Chase hires Hailey Bieber to sell premium cards, Figure's IPO aims to rewire lending, and why store APRs remain stubbornly high.
Hey Toaster Readers,
This week is sponsored by our friends at Fintel Connect.
What if your AI could handle your holiday shopping? That's the future Google, Mastercard, and PayPal are building, with new AI agents designed to securely make purchases on your behalf.
Meanwhile, the battle for your physical wallet is as intense as ever. Chase is tapping Hailey Bieber to market its Sapphire card, while Amex is dropping a limited-edition, mirror-finish Platinum card. The co-branded card space is also exploding, with Cardless raising $60 million and new Bitcoin rewards cards hitting the market. Plus, we're watching some big fintech ambitions unfold, as Revolut confirms it's pursuing a U.S. banking license and Figure’s big $8 billion IPO to modernize lending.
Lots to break down. Let's get toasting!
AI in Payments
(AI) Google, Mastercard, and PayPal Advance AI-Powered Commerce
Google introduced the Agent Payments Protocol (AP2), a new framework designed to allow AI agents like Gemini to securely make purchases on behalf of consumers. This protocol enables AI to handle complex tasks, such as booking flights or ordering items, by interacting directly with merchant payment systems, while keeping user authentication central to the process. In parallel, major payment networks, including Mastercard and PayPal, are integrating this type of "agentic AI" to create a more seamless and intelligent shopping experience for consumers, with Mastercard specifically accelerating these efforts ahead of the holiday shopping season. [Google Cloud Blog] [American Banker] [American Banker] [American Banker] [FinTech Magazine] [PYMNTS.com]
Intro to Google Agent Payments Protocol (AP2)
Credit Cards & Marketing
(Credit Cards) Cardless Raises $60M to Expand Co-Branded Credit Card Platform
Cardless, a fintech company that enables brands to launch their own credit cards, secured $60 million in a Series C funding round. This new capital comes after successful launches of co-branded cards with partners like Coinbase and Bilt, and will be used to expand its platform, which simplifies the process for companies to offer customized credit card products directly to their consumer base. [Business Wire] [Bloomberg]
(Credit Cards) New Co-Branded and Niche Credit Cards Enter the Market
Fold is launching a new Bitcoin rewards credit card, powered by partnerships with Stripe and Visa, allowing consumers to earn cryptocurrency on their everyday spending. Separately, beauty retailer Sephora has introduced its first credit card program, offering both a Visa card and a private-label store card to provide its customers with enhanced loyalty rewards and benefits. [GlobeNewswire] [PYMNTS.com]
https://foldapp.com/credit-card
(Marketing) Chase and Amex Use Celebrity and Design to Market Premium Cards
Major credit card issuers are using distinct marketing strategies to appeal to premium consumers. Chase enlisted celebrity Hailey Bieber for a new campaign for its Sapphire Reserve card, aiming to associate the card with a modern, luxury lifestyle. Meanwhile, American Express has released a limited-edition, mirror-finish version of its Platinum card, a design choice intended to reinforce its status as a luxury object and generate social media attention. [Adweek] [Fast Company]
(Consumer Finance) Store-Issued Credit Cards Continue to Feature High Interest Rates
A recent analysis shows that interest rates on store-issued private-label credit cards remain significantly high. These elevated Annual Percentage Rates (APRs) can create a substantial debt burden for consumers who carry a balance, underscoring the high cost associated with this form of retail financing. [PaymentsJournal]
Fintech & Partnerships
(Fintech) Mastercard Welcomes 11 Startups to Its Start Path Fintech Program
Mastercard announced the latest cohort for its Start Path Emerging Fintech program, selecting 11 innovative startups from around the globe. The program is designed to help these early-stage companies scale their operations by providing access to Mastercard's technology, expertise, and global network of partners. [Mastercard]
(Partnerships) JPMorgan Chase and Plaid Extend Data-Sharing Agreement JPMorgan Chase and Plaid renewed their data access agreement, ensuring that Chase customers can continue to securely connect their account information with third-party apps and services. The agreement utilizes an API-based connection, which provides a more secure and reliable way for consumers to grant permission for their data to be shared, moving away from less secure methods like screen scraping. [Business Wire]
(Fintech) Affirm Focuses on Expanding Services with Merchant Partners
BNPL provider Affirm is expanding its service offerings beyond simple installment loans by integrating additional financial tools with its merchant partners, such as Shopify and ServiceTitan. This strategy aims to create a more integrated ecosystem for both consumers and businesses, deepening the company's role in the checkout and financing process. [Payments Dive]
(Fintech) Revolut Confirms Plans to Pursue a U.S. Banking License
Global fintech company Revolut stated it is actively exploring options for obtaining a U.S. bank charter. Securing a license would allow the company to operate as a full-fledged bank in the United States, enabling it to expand its product suite and offer more comprehensive financial services directly to American consumers. [PYMNTS.com]
(Fintech) Figure’s IPO to Modernize Lending
Fintech firm Figure was valued at $5.3 billion at its Initial Public Offering (IPO) as it seeks to rewire traditional financial products, such as home equity lines of credit (HELOCs). The company leverages blockchain technology to create more efficient and transparent systems for originating, servicing, and trading loans. [Lex Substack] [Blockchain lender Figure raises $787.5 million in US IPO]
Consumer Credit & Data
(Credit Reporting) TransUnion Notes Rise in Rent Payment Reporting
Credit bureau TransUnion reports that an increasing number of rent payments are being furnished to credit reporting agencies. This trend is beneficial for consumers, especially those with limited credit history, as it allows their consistent, on-time rental payments to be included in their credit files, potentially helping to build or improve their credit scores. [PYMNTS.com]
(Fraud) TransUnion Identifies $3.3B Threat from Synthetic Identity Fraud
New research from TransUnion highlights the significant financial impact of synthetic identity fraud, estimating it to be a $3.3 billion problem. The study highlights the effectiveness of utilizing public data sources to assist financial institutions in identifying and preventing this type of fraud, where criminals fabricate identities to open fraudulent accounts. [TransUnion]
(Personal Loans) LendingTree Releases 2025 Personal Loan Statistics
A report from LendingTree provides a comprehensive overview of the personal loan market in 2025. The data covers key trends, including average interest rates, standard loan amounts, and the primary reasons consumers seek personal loans, such as debt consolidation and financing large one-time expenses. [LendingTree]
Banking & Digital Currency
(Digital Currency) Bankers Remain Unconcerned by Stablecoins for Now
According to a recent report, most bankers do not currently see stablecoins as an existential threat to their business models. While they acknowledge the growth of digital currencies, they believe that the established regulatory frameworks and trust associated with traditional banking will prevent stablecoins from significantly disrupting their core services in the near term. [American Banker]
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Carlos Caro is the founder of NMG, an agency that helps lenders build affiliate programs.
Nick Madrid is the co-founder of Uncovered Media and Ghostmode, a media company that builds Newsletters, Podcasts, and communities in high-value B2B niches.