Discover balances innovation with security in digital payments, preparing for CBDCs while enhancing cross-border transactions through partnerships. The world’s payments landscape is rapidly shifting away from cash and cheques toward digital solutions. With research showing 82% of consumers interested in instant payments and 92% of merchants anticipating significant value from these technologies, financial institutions must evolve quickly. Discover is positioning itself at the forefront of this revolution, balancing innovation with robust security measures while preparing for emerging technologies like Central Bank Digital Currencies. Tribh Grewal, Director of International Product Strategy and Business Development at Discover, says ” At Discover® Network, we are embracing technology solutions and forging partnerships to meet our customer’s needs. We have built a strong foundation through nearly a decade of continuously increasing volume and cards in force. Our model enables us to grow rapidly, help partners gain global scale and keep payments more secure and efficient for cardholders. We remain dedicated to developing strategic partnerships that enhance scale. For example, our collaboration with Fintechs like Nium, Fyorin, and Pax2pay facilitates secure and scalable global payments. Enabling new partners to issue Diners Club commercial B2B products on the Discover Network, we provide travel intermediaries with increased payment flexibility and acceptance. Additionally, we recently announced that the European mobile payment solution, Bluecode, will soon be accepted worldwide at millions of merchant locations through our network and enable local mobile wallet solutions for cross-border payments. Discover’s Enhanced Decisioning is a sophisticated fraud management solution that empowers merchants to enhance authorisation messages for Card-Not-Present (CNP) transactions by including additional customer data. This initiative allows consumers to complete purchases more seamlessly, minimising the friction caused by false declines. Merchants benefit from the system’s ability to block risky transactions while ensuring the approval of valid ones, ultimately leading to a reduction in disputes. Beyond transaction monitoring, we are also enhancing collaboration across the payment’s ecosystem. Our account management tools enable the secure exchange of information with other entities in the network — supporting acquirers in identifying and closing potential merchant loopholes. Through our High Brand Risk programme, we work closely with acquirers to identify, register, and manage merchants operating in higher-risk sectors, such as online gambling or cryptocurrency. The growing complexity of the payments landscape means that collaboration in the industry is important to reduce friction. For example, our recent partnership with Fyorin, a leading provider of financial operations solutions, enables us to offer Business-to-Business virtual cards. These virtual cards simplify cross-border transactions by reducing operational friction, lowering costs, curbing currency conversion fees, and streamlining reconciliation processes for companies active in multiple markets. Looking ahead, data and network intelligence will be central for unlocking the true potential of international payments. By leveraging advanced analytics, we can gain deeper insights into transaction flows, foreign exchange dynamics, and risk management, empowering businesses to navigate global payment complexities with confidence.
Capital One to support four wellness and community development organizations, and open new café in The Bronx tied to the acquisition of Discover Financial Services
Capital One announced a $1 million investment in The Bronx. This investment signals the start of a series of investments that Capital One will be making in low- and moderate-income communities across New York and nationwide as part of its $265 billion, five-year Community Benefits Plan (CBP), tied to the company’s recently approved acquisition of Discover Financial Services. The funds announced today will provide direct support to startup incubators, bolster the local business improvement district, expand small business loan programs and offer technical assistance and financial counseling to entrepreneurs and residents. “As Capital One prepares to unlock the historic $265 billion Community Benefits Plan related to our acquisition of Discover Financial, we are taking a meaningful step to partner with 4 innovative organizations who are investing in the Bronx’s small business ecosystem,” said Kerone Vatel, Senior Vice President, Community Finance, Impact & Investment at Capital One. This new investment will be highlighted tomorrow at the grand opening celebration of the Capital One Café at Fordham Road in The Bronx, which serves as a reimagined banking experience providing expanded financial access to members of the community. The Café—the fifth in New York City and part of Capital One’s growing network of 60 nationwide—is designed to provide financial literacy resources, programming and a welcoming environment for all, whether they are Capital One customers or not. The $1 million investment will support new and existing partnerships in The Bronx, contributing to the neighborhood’s financial wellness and community development, through grants for the four following organizations:
- Ariva: Capital One is deepening its partnership with the financial well-being organization to invest $200,000 in its Small Business Program, Free Tax Prep and Individual Financial Counseling and Coaching programs.
- Bronx Economic Development Corporation (BXEDC): In collaboration with The Bronx Borough President, Capital One is investing $400,000 to support BXEDC in growing the Small Business Loan Program.
- Fordham Road Business Improvement District (BID): Through a newly established partnership, Capital One will fund $200,000 in general operating support for the BID to provide resource navigation and capacity-building services to the local small business corridor.
- Lehman College: Capital One is advancing its partnership with the college to provide $200,000 for the Bronx Business Tech Incubator to support small businesses, entrepreneurs and freelancers.
SoFi offers new refinance option allowing reduced student loan repayments to be used for nine months to support life transitions like finding a new job, relocating to a new city, or searching for a new home
SoFi is making student loan repayment more flexible with the launch of SmartStart, a new refinance option. With SmartStart, people can put money they’d otherwise use on student loan payments in the first nine months towards supporting life transitions like finding a new job, relocating to a new city, or searching for a new home. With SmartStart, members can refinance their student loans and pay only the interest for their first nine months. This keeps minimum monthly payments low and eases financial stress as they start their next chapter. For example, a member refinancing $50,000 in loans over a 10-year term could reduce their monthly payments by more than $3,000 during their first nine months.2 After the first nine months, members will start paying the principal and interest for the remainder of the loan. SmartStart loans come with SoFi’s competitive fixed interest rates and flexible terms of up to 20 years, providing members with control over the amount they pay each month and more predictability over their budgets. Anthony Noto, CEO of SoFi. “With SmartStart, members get lower payments in the early part of their loans as they make important life transitions. There are endless ways SoFi will innovate to help our members spend less than they make and invest the rest, and that’s exactly what we’re doing with SmartStart.” Through competitive interest rates, no hidden fees, and flexible repayment options, SoFi members have saved thousands of dollars over the life of their loans. SoFi makes it easier for borrowers to lower their monthly payments, reduce their total interest costs, and pay off their loans faster. SoFi members also get access to benefits like financial planning tools, and member events, ensuring that refinancing isn’t just about saving money—it’s about setting yourself up for long-term success.
BAI: Granular benchmarking data can reveal digital banking onboarding hurdles and its solutions
Growing new banking customer acquisition through digital checking accounts required the best combined efforts of a super-regional bank’s product and digital channel teams, with internal marketing and its agency partners invested heavily in attracting target prospects. Robust marketing drove prospects to a digital checking account application, but a high abandonment rate perplexed the bank. To justify the front-end marketing spending as well as the new resources required for a process redesign meant that these strategists needed an iron-clad case. They could pitch reformulated questions and how a smoother process might look. But more importantly, they needed real evidence to quantify the projected improvement in the volume of new accounts and higher average balances with those new openings. That’s where the granularity and analysis that peer benchmarking delivers made a difference. Supplied with benchmarking that gave a clear snapshot of their digital peers and bolstered by the quality of prospects that were trickling through, the bank focused on the account application process and cross-referenced internal data that identified two, specific Know Your Customer (KYC) and credit-check access questions of the application. It was here that several prospects went cold. That is, there was a noticeable drop-off in data input on applications right at that spot. Some applicants paused for a considerable time and were still willing to push through; many abandoned all together. Importantly, benchmarking doesn’t provide the entire solution. KYC and credit questions, for instance, are valuable must-ask application points from a risk perspective. These lines of inquiry would need to remain in the process. The fixable portion turned out to be a form design that made fulfilling those questions too cumbersome and analog for many applicants who were already thinking digital-first. After all, these future customers were on their way to signing up for digital checking. Still, given the quality of applicants and the ability to pinpoint the problem, the fresh resource allocation could be justified. Using the benchmarking analysis, the team was able to build a solid business case to support the application redesign. They were able to more accurately model both the upside in terms of new checking accounts as well as new balances. The resulting growth and profits were substantially higher than the cost of the application re-design project. And the team had more confidence in the business case because of the strength of the benchmarking analysis. Think of benchmarking as a robust strategy tool that can be used to confirm (or refute) assumptions and working hypotheses. This enables bank and credit union leaders to start from a data-driven mindset and engage in committed feedback exchanges with colleagues. These leaders must keep an open mind for results that may confirm or challenge expectations to make smarter, fact-based decisions that typically result in better business results.
VoPay’s solution enables banks and SaaS platforms to offer full-stack embedded real-time cross border payments by using APIs, white-label deployment or through no-code services
Embedded financial technology provider VoPay has announced the launch of its new Cross-Border Payments-As-A-Service solution. The white-label technology will enable organisations to move money around the world with full transparency, compliance, and real-time FX. In addition, being built for software platforms and financial institutions, the product will allow firms to benefit from its features without the need to build their own cross-border infrastructure. With this solution, partners and collaborators will have the possibility to expand into global markets and deliver a secure cross-border payment offering. VoPay will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well. In addition, VoPay’s solution is purpose-built to serve vertical SaaS platforms, digital marketplaces, and ERP providers, as well as payroll platforms and financial institutions that are looking to unlock new revenue from international money movement. Included in its key capabilities are a full-stack embedded payments, real-time FX engine, compliance by design, end-to-end orchestration, white-label flexibility, and speed to market features. Software platforms and FIs can launch Cross-Border Payments in a way that fits their business model. This includes the possibility to embed the experience directly into their platform using branded UI components and developer-first APIs, launch a Turnkey Solution using VoPay’s white-label deployment model, or access no-code services from the company’s dashboard with full functionality–zero development needed.
Bilt Rewards partners with Southwest Airlines to enable members to turn points earned from housing payments into points that can be used to make flight bookings
Bilt Rewards has partnered with Southwest Airlines to enable Bilt members to turn points earned from housing payments into points that can be used to book flights. Bilt members can convert their Bilt Points into Southwest Rapid Rewards points at a 1-to-1 ratio. Bilt Points are earned each time members pay their rent on time through Bilt. “Now, your housing payment that was once just a monthly expense can unlock travel experiences with one of America’s most popular airlines, giving our members access to more destinations across the U.S. and beyond,” Bilt Founder and CEO Ankur Jain said. Bilt and Southwest plan to add exclusive promotions and enhanced capabilities for their customers as their new partnership evolves. Jonathan Clarkson, vice president and chief product officer at Southwest Airlines, said that the collaboration “allows Southwest to connect with a unique audience of renters and homeowners across the United States while offering them the opportunity to use their Bilt Points to fly Southwest.” Bilt Points can now be used toward travel across over 100 airlines and hotel partners, fitness classes at boutique studios, art and home decor through the Bilt Home Design Collection, rent credits, future down payments on a home, or eligible student loans.
Two’s B2B BNPL solution can be embedded directly into merchants’ checkouts, providing instant trade credit at the POS enabling consolidating multiple purchases into grouped monthly statements
A new wave of European startups is actively pursuing expansion into the US B2B BNPL sector as part of broader international growth strategies. Among them is Two, a B2B BNPL firm currently running a pilot program in North America as it prepares for a full-scale launch into the region’s BNPL market. While Two doesn’t yet have a physical footprint in the United States, it maintains an online presence through partnerships with Santander and Allianz, whose operations span the Americas, including the US. Two’s current pilot program offers trade credit solutions through its white-labeled Buy Now, Pay Later service and its installment product. These solutions are integrated into merchants’ checkout, existing financial workflows, and payment systems, enabling buyers to break large purchases over up to 24 months. Andreas Mjelde, CEO & Co-Founder of Two, shares that the company is preparing to roll out its full product lineup in North America by the second quarter of 2025. The full lineup will include: 1) B2B BNPL embedded directly into guest checkouts, providing instant trade credit to businesses at the point of sale. Currently, BNPL is embedded in certain open and closed-wall checkouts. 2) Trade Accounts that will enable businesses to consolidate multiple purchases into grouped monthly statements, simplifying payment management and cash flow oversight. 3) Extended installment plans, providing repayment options of up to 36 months for businesses managing larger transactions. He explains that the firm’s localized approach incorporates regional credit risk assessments and personalized repayment experience targeting the specific needs of US-based companies. ”Our proprietary risk models, Frida and Delphi, deliver high acceptance rates while minimizing friction for buyers,” says Andreas. This automation speeds up onboarding and boosts approval rates, without the need for hard credit checks. The firm has built its machine learning infrastructure and AI models in-house. Two is pursuing a phased expansion strategy, starting in US states with high digital payment adoption with the support of global banking partnerships, before scaling further
Ibanera’s onboarding and AML compliance solution adopts a layered and tokenized design that replaces sensitive data with unique identifiers and makes compliance traceable and verifiable across complex networks of users
Digital banking platform Ibanera announced the launch of its ‘Nested Compliance’. Produced by the company CEO, Michael Carbonara, the infrastructure directly combats current risks faced by the Fintech and Banking as a Service (BaaS) industry. The framework differs from current financial compliance processes by automating KYC and AML processes while adopting a layered and tokenized design that embeds compliance across its vast customer network. Ibanera’s new Nested Compliance concept introduces high-level automation for KYC and AML processes for operational efficiency. The upgraded system uses API-driven, real-time compliance monitoring with early warning triggers for expiring KYC, automated counterparty verification, and embedded reporting to speed up processes and keep detailed records for audit purposes. The framework also debuts a unique design that tokenizes compliance. Sensitive data is replaced with unique identifiers, minimizing PII (Personally Identifiable Information) exposure risk. The tokenized design also creates a system where compliance is traceable and verifiable across complex networks of users, simplifying financial relationships and the overall compliance process. Through this, layered transactions are secure, monitored, and compliant with FATF, FINCEN, and global Anti-Money Laundering (AML) regulations. The new Nested Compliance protocol is being rolled out on Ibanera’s ecosystem this year and is available for customers and partners. Key updates include real-time risk assessments of counterparty data, along with ongoing AML checks to prevent illicit activities within nested payment structures.
P2P payment information network Phixius by Nacha partners Kinexys by J.P. Morgan to add near real-time global validation of bank account ownership, status and transactions to its real-time validation
Phixius by Nacha and Kinexys Liink established information exchanges between their payment information networks. The collaboration will enhance account validation coverage for financial institutions, FinTechs and corporations. Phixius, which is a peer-to-peer payment information network, will serve as Kinexys Liink’s key U.S. payment information network responder, enabling near real-time validation of domestic bank account data. Kinexys Liink, which is a bank-led peer-to-peer data-sharing network and part of Kinexys by J.P. Morgan, will allow Phixius participants access to its Confirm application’s global account validation capabilities, expanding the reach of the Phixius network. “Kinexys Liink and Phixius customers can benefit by validation services using data provided by either network, helping to mitigate payment fraud and reduce potential ACH returns,” Rob Unger, managing director of ACH Network development at Nacha, said. Gloria Wan, general manager of Kinexys Liink at Kinexys by J.P. Morgan, said: “Through the collaboration with Phixius by Nacha, we look forward to expanding the reach of Kinexys Liink to further strengthen account validation and cross-border payment infrastructure globally.”
Microsoft releases taxonomy of failure modes- security and safety- inherent to agentic architecture- novel modes unique to agentic systems (e.g. agent compromise) and modes representing amplification of existing GenAI risks (e.g. bias amplification)
Microsoft’s AI Red Team has published a detailed taxonomy addressing the failure modes inherent to agentic architectures. Agentic AI systems are autonomous entities that observe and act upon their environment to achieve predefined objectives. These systems integrate capabilities such as autonomy, environment observation, interaction, memory, and collaboration. However, these features introduce a broader attack surface and new safety concerns. The report distinguishes between novel failure modes unique to agentic systems and amplification of risks already observed in generative AI contexts. Microsoft categorizes failure modes across security and safety dimensions. Novel Security Failures: Including agent compromise, agent injection, agent impersonation, agent flow manipulation, and multi-agent jailbreaks. Novel Safety Failures: Covering issues such as intra-agent Responsible AI (RAI) concerns, biases in resource allocation among multiple users, organizational knowledge degradation, and prioritization risks impacting user safety. Existing Security Failures: Encompassing memory poisoning, cross-domain prompt injection (XPIA), human-in-the-loop bypass vulnerabilities, incorrect permissions management, and insufficient isolation. Existing Safety Failures: Highlighting risks like bias amplification, hallucinations, misinterpretation of instructions, and a lack of sufficient transparency for meaningful user consent