Marqeta’s first quarter results surged across several metrics as new and existing card issuance programs grew on a global stage across debit and credit channels, and the company’s platform gains a tailwind as it enables new BNPL and embedded finance offerings. Total processing volume (TPV) of $84 billion was up by 27%. Forward looking guidance looks for net revenue growth in the range of 13% to 15%. Mike Milotich, interim CEO and CFO, said that net revenue growth of 18% to $139 million. Beyond Block (the company’s largest customer at 45% of Marqeta revenues), Milotich said that non-Block TPV grew at 2x faster than Block TPV, “fueled by a wide range of customers across several use cases. Consistent with the last several quarters, financial services, lending including buy now, pay later, and expense management drove the bulk of our TPV growth.” Lending and expense management TPV continued to grow over 30% “and both accelerated a bit from last quarter,” given a boost by the combination of Klarna’s migration to the Marqeta platform in Europe, and “our BNPL customers benefiting from the increased adoption of Pay Anywhere card solution and distribution through wallets, both are supported in part by newly available flexible network credentials and strong user growth among SMB lending solutions.” He also said that despite a challenging macro environment, there has not been a spending shift across the platform, telling analysts, “Breaking down the spend by low, medium and high discretionary TPV based on merchant category reveals no meaningful shift in the mix of spending in Q1 versus the past several quarters.”
Elavon and Jscrambler partner to strengthen PCI DSS compliance for merchants for requirements of 6.4.3 and 11.6.1
Elavon and Jscrambler have partnered to help merchants comply with PCI DSS requirements 6.4.3 and 11.6.1. Through this agreement, Elavon’s network of more than 400 merchants can leverage Jscrambler’s Client-Side Protection and Compliance Platform to safeguard their business from escalating web skimming attacks. Using Jscrambler’s Client-Side Protection and Compliance Platform and PCI DSS solution, merchants can meet PCI DSS requirements while preventing web skimming attacks, securing payment pages, and maintaining compliance efficiently. Now, through this collaboration, the two companies combine Elavon’s extensive experience as a global leader in payment processing with Jscrambler’s innovative technologies to address the critical need for robust payment security. Jscrambler’s PCI DSS solution delivers the following capabilities: Script Management: Auto-discovers and authorizes payment page scripts, reducing manual approvals by grouping vendor behaviors. Skimming Prevention: Blocks unauthorized data access in real-time, protecting against web skimming and formjacking. Tamper Detection: Monitors HTTP headers and page content, alerting on unauthorized changes via email, SIEM, or Slack. Hybrid Architecture: Supports agentless and agent-based deployment for flexibility, enabling rapid compliance for complex or acquired payment pages. PCI DSS Expertise: Provides direct access to former PCI Security Standards Council members and a strong bench of PCI DSS experts. QSA Alliance Program: Provides access to enablement sessions, assessor forums, and inventory reports to streamline audits. Andrew McCarroll, PCIP Customer Payment Security Executive, Elavon said “By partnering with Jscrambler, Elavon is offering merchants easy access to Jscrambler’s PCI DSS solution.”
Stripe launches stablecoin accounts and AI foundation model to improve fraud detection and authorization rates trained on “subtle signals” per payment, which specialized models cannot capture
Among these, the company debuted an AI foundation model to improve fraud detection and authorization rates. Dubbed the Payments Foundation Model, it is trained on tens of billions of transactions and incorporates hundreds of “subtle signals” per payment, which it said specialized models cannot capture. The technology firm plans to deploy this model across its payments suite to improve performance in ways that were previously unattainable. Stripe stated that early results indicate the model’s effectiveness, particularly against card testing attacks, where it increased detection rates beyond the 80% reduction achieved over two years with previous models. By applying the new foundation model, Stripe increased its detection rate for attacks on large businesses by 64% practically overnight. In parallel, Stripe expanded its money management offerings with the launch of Stablecoin Financial Accounts, powered by stablecoins. Businesses using these accounts can hold balances in stablecoins, receive payments via both crypto and traditional fiat rails such as ACH and SEPA, and send stablecoins to most markets globally. These accounts are designed to be accessible to businesses in 101 countries. Initially, the accounts will support stablecoins USDC and Bridge’s USDB, with plans to incorporate additional currencies over time. Stripe also announced a deeper partnership with NVIDIA, which completed the fastest-ever migration to Stripe Billing.
OCC clarifies banks may buy and sell assets crypto-assets; can also outsource custody to third parties
The OCC has clarified that institutions under its oversight can now buy and sell crypto assets on behalf of their customers. In addition, the OCC stated that national banks may outsource crypto-asset services to third parties, including custody and trade execution, provided those third parties maintain sound risk management practices. The latest OCC letter follows a similar directive issued in March, which rescinded the 2021 policy requiring banks to seek prior supervisory approval before engaging in crypto-related services. “The services national banks may provide in relation to the cryptocurrency they are custodying may include services such as facilitating the customer’s cryptocurrency and fiat currency exchange transactions, transaction settlement, trade execution, recordkeeping, valuation, tax services, reporting, or other appropriate services,” the March letter stated. It further clarified: “A bank acting as custodian may engage a sub-custodian for cryptocurrency it holds on behalf of customers and should develop processes to ensure that the sub-custodian’s operations have proper internal controls to protect the customer’s cryptocurrency.” Meanwhile, the Federal Reserve recently dropped its supervisory guidelines that previously required American banks to notify it in advance of any crypto-asset activities. Banks are also no longer required to obtain formal approval from the Fed before engaging in stablecoin-related operations. The decisions by both US regulators reflect the broader shift toward more crypto-friendly policies under the Trump administration.
Bank of America and U.S. Bank top analyst Keynova’s CX best-practices benchmark evaluating leading issuers’ websites; key initiatives are tracking in-progress actions and enlisting cardholder engagement in account security
Keynova Group, the principal competitive intelligence source for digital financial services firms, announced the results of the 2025 Online Credit Card Scorecard, a customer experience best-practices benchmark evaluating leading issuers’ websites. Bank of America and U.S. Bank tied for first place in Keynova Group’s competitive evaluation of the 10 leading U.S. credit card issuers. The latest findings highlight issuers simplifying digital processes and tasks to drive a more engaging user experience, giving cardholders the information they need to directly monitor their accounts and coupling content and tools with the credit profile to support meaningful insights. Key Findings: 1) Streamlining Digital Processes for Cardholders: Issuers are driving positive outcomes for cardholders by integrating previously discrete actions and information to streamline tasks, reduce redundancies and lessen the need for live support resources. To help mitigate unnecessary transaction disputes, which can be costly and time-consuming for issuers to handle, nearly all issuers now supply expanded transaction details, including displaying the merchant address or a mapped location, listing an identified purchaser for multi-user cards, or providing a digital merchant receipt to help cardholders identify purchases. 2) Helping Cardholders Manage and Monitor Digital Accounts: Enabling cardholders to participate in directly monitoring their account activity and reduce customer servicing costs, issuers are also expanding tools that empower digital users. For example, U.S. Bank recently introduced a Status Dashboard allowing cardholders to track in-progress actions including transaction disputes, balance transfers, credit limit-increase requests, and changes to customer information. Enlisting cardholder engagement in account security is another critical initiative. Bank of America and U.S. Bank each offer an online account security indicator (and Wells Fargo supports a similar tool via its mobile app) highlighting personalized actions that cardholders can take to protect their account information. Nearly three-quarters of issuers furnish last login date and time details on the authenticated landing page, and last login device information is increasingly provided for timely verification by the cardholder. In addition, as more organizations gain access to credit card and card account details, issuers are supplying lists of merchants that are storing a user’s credit card number or of third parties with data-sharing access to a card account, enabling cardholders to proactively control the availability of their personal information. 3) Enriching Cardholders’ Credit Profiles: New features that couple credit scores and reports with expanded content and tools can help cardholders better understand and effectively manage their credit profiles. Though it has become table stakes for issuers to supply cardholders with complimentary single sign-on access to their credit profiles, some issuers are supporting more highly tailored content.
In Discover, Capital One is getting “a great brand from a customer experience perspective”; financial performance too has improved with delinquency rate for credit card loans more than 30 days overdue dropping 17 basis points to 3.66%
Capital One is getting a cleaner and leaner Discover Financial Services than the one it agreed to buy 15 months ago as the Riverwoods-based company spent much of the intervening time resolving the issues that made it ripe for sale in the first place. As the firms move toward a May 18 closure date, the Discover brand — which analysts said was largely untainted in consumers’ eyes by its regulatory issues — and the company’s much-desired payment network are what’s left. “They are still getting a great brand from a customer experience perspective,” said Jordan Sternlieb, leader of the banking practice at Chicago-based consulting firm West Monroe. “I think they’re just so well known in that space. I hope that the Capital One team sees that as a valuable part of this acquisition and kind of takes the best of that forward.” Since the acquisition was announced, Discover’s stock has soared nearly 73%. Capital One’s has risen 44%, boosting the implied value of the all-stock deal to about $50.4 billion from $35 billion. After the deal closes, Capital One stockholders will own 60% of the combined company. Capital One has given no indications about its designs for Discover’s Riverwoods campus, which houses about 5,000 workers. But it has said it will remain committed to Discover’s plan for hiring 1,000 employees at its Chatham call center, a goal the company hit in October. Capital One’s executives highlighted the importance of Discover’s brand and personal attention it gives customers on a recent call with analysts discussing its first-quarter earnings. Much of the questioning revolved around Capital One’s plans for Discover. The credit card company’s payment network will allow Capital One to hold on to processing fees normally collected by rivals such as Visa and Mastercard. It also will serve as a key point for growth-spurring innovation. Despite the regulatory issues, Discover’s financial performance has improved since the Capital One takeover was announced. The company’s 2024 net income rose to $1.1 billion, or $4.25 per diluted share, compared with net income of $851 million, or $3.25 per diluted share, in 2023. And the company’s net charge-off rate, the amount of credit card debt it views as uncollectible, decreased 19 basis points to 5.47% during the same time period. Discover’s delinquency rate for credit card loans more than 30 days overdue dropped 17 basis points to 3.66%. The results show Discover’s long-standing regulatory problems are in the past, Morningstar equity analyst Michael Miller said. “When Capital One agreed to acquire Discover, Discover was facing quite a lot of regulatory uncertainty,” Miller said. “None of this ended up being too damaging for Discover. At the time we did not know what the actual end cost would be. Since that time we have gotten more clarity, specifically what the final cost of this was, and it ended up not being that substantial.” The deal, which was approved by shareholders in February, appears headed for closure later this month. Regulators from the Federal Reserve and the Office of Comptroller of the Currency gave their seal of approval April 18, and while Department of Justice staff were divided about whether the DOJ should challenge the tie-up, new antitrust division chief Gail Slater determined there was not enough evidence to try and block it.
Blackstone, Vanguard, Wellington to launch private markets fund; investors will be able to make quarterly withdrawals capped between 5% and a quarter of the fund’s net-asset value
Blackstone, Vanguard, and Wellington Management are launching an interval fund that will invest in public equities, bonds and private markets, as part of their effort to expand private-market offerings to retail clients. The firms have laid out plans for an interval fund, through which investors will be able to make quarterly withdrawals capped between 5% and a quarter of the fund’s net-asset value. The trio partnered up earlier this year, amid a rising trend of ventures between firms that typically manage public stocks and bonds and those that invest in alternatives. Wellington will manage the interval fund — the first from the partnership — and draw its investments from all three firms. It will allocate up to 60% in public equities, up to 30% in fixed income and as much as 40% in private markets investments, according to the filing, which did not disclose what fees clients will be charged. Traditional asset managers have been seeking ways to move beyond stock and bond funds into higher-margin businesses, including private equity and private credit. At the same time, alternative asset firms have been searching for ways to tap a bigger slice of the retail market. Many have resorted to interval funds which can offer exposure to assets ranging from real estate to direct lending for buyouts.
PayPal’s approach to cash flow-based lending to soon allow redrawing without having to fully repay a loan
Small businesses juggle over 15 tools to manage operations, diverting time from their core passions. Michelle Gill, who leads PayPal’s Small Business and Financial Services Group, aims to reduce this complexity through integrated solutions that help merchants reclaim their time and fuel growth. As General Manager of PayPal’s Small Business and Financial Services Group, Michelle Gill is responsible for bringing together the products and services that help small business owners run and grow their business. “It’s not the adoption of the new tool in and of itself that’s the problem. It’s how it feeds back into your broader ecosystem,” says Gill. PayPal’s strategy focuses on streamlining tools through a single integration. It aims to reduce friction and give entrepreneurs more time to focus on their craft. PayPal’s approach to cash flow-based lending matches repayments with earnings. It is unlike traditional fixed-schedule lending. “Repayment is predicated on the receipt of those earnings,” says Gill. She describes the flexibility of the PayPal Working Capital product. This flexibility makes the loan more manageable for merchants with fluctuating revenue. But, until recently, merchants couldn’t access more funds until fully repaid the loan. That’s changing. “We are changing our product to allow for the ability to redraw,” she notes. She signals towards an update that will help entrepreneurs recycle capital more efficiently. Previously, PayPal could only lend based on what it processed. But open banking now enables them to assess a holistic view of merchant cash flow. “We now can have visibility into the entire merchant account, both on and off PayPal,” says Gill. This broader perspective supports more accurate underwriting. It offers larger loan sizes without expanding the credit risk. PayPal isn’t just offering loans—they’re embedding them into the workflows merchants already use. Through the PayPal dashboard, users are notified of pre-approved loan amounts as they manage daily tasks. These are like refunds and chargebacks. “We are planning to add the amount that merchants have been pre-approved for, so they know going in,” Gill shares. PayPal is also collaborating with vertical SaaS providers, as well as with marketplaces, to bring financing directly into partner platforms. The Big Ideas:
- Small Businesses Face Tool Overload. “The preponderance of them use more than 15 tools to run their business.” This overload creates inefficiencies—PayPal’s integrated platform is intended to reduce that friction.
- Cash Flow Lending Matches Business Realities. “Repayment is predicated on the receipt of those earnings.” This model reflects how small businesses operate, especially in unpredictable markets.
- Access to Capital Expands with Open Banking. “We now have visibility into the entire merchant account… not only borrow against your PayPal receivables, but also your off-US receivables.” This broader access supports more accurate and inclusive lending.
- Embedded Finance Increases Accessibility. “Merchants who use PayPal come into their dashboard generally at least once a week… We let them know they have access to capital.” In-app lending notifications simplify the financing journey.
- Loyalty Grows with Product Adoption. “If you borrow once from us, you tend to borrow five or six times.” This repeated usage signals that the lending tools are resonating with merchants.
Morgan Stanley to see no SEC penalty on cash sweeps, but still faces investigation from a securities regulator in a state
Morgan Stanley will see no penalty from the Securities and Exchange Commission over the bank’s cash sweep program. The SEC told the bank March 11 that it had “concluded” its nearly yearlong investigation of the program “and did not intend to recommend an enforcement action,” according to the filing. In a cash sweep, idle cash is automatically moved to an interest-bearing account or money market fund unless the account holder opts out. Several institutions’ cash sweep programs caught the SEC’s attention last year. The regulator aimed to ascertain whether banks or brokers steered clients toward sweep accounts that paid little or no interest, and whether the companies’ financial advisers had a fiduciary duty to tell clients they could make higher returns by moving their cash into other accounts. Morgan Stanley announced in August that the SEC was reviewing the program. Days earlier, the bank raised rates to around 2% – from as little as 0.01% – on cash sweeps in advisory accounts. Morgan Stanley isn’t completely off the hook. The bank still faces a cash-sweep investigation from a securities regulator in a state it did not identify, according to the filing. Morgan Stanley and other financial firms also have been named as defendants in several class-action lawsuits – notably in New Jersey and New York – that claim the lender or its E*Trade subsidiary failed to pay a reasonable interest rate on cash sweeps, the filing indicated.
Wells Fargo to bring Operation HOPE in-branch SME financial coaching program to more neighborhoods in Los Angeles, and Charlotte; targets expansion to 50 markets across the U.S. by 2026
Wells Fargo in collaboration with Operation HOPE, a national nonprofit dedicated to financial empowerment for underserved communities, today introduced HOPE Inside for Small Business to provide financial coaching and support to small business customers in key markets at no cost. Starting in Baldwin Hills and Van Nuys neighborhoods of Los Angeles, Calif., and Charlotte, N.C., this expansion builds on the existing HOPE Inside program that helps empower community members to achieve their financial goals through financial education workshops and personalized coaching.
Wells Fargo first launched HOPE Inside centers in 2022 to serve individuals with their personal finances and help build financial resilience through guidance in areas like budgeting, credit building, and money management. The new Small Business HOPE Inside centers will now offer those same specialized resources for small business owners in addition to business plan development, access to capital education and more. Through one-on-one coaching, entrepreneurs will receive personalized support to help start, grow, and sustain their businesses. “We know that having access to trusted financial guidance is invaluable,” said April Schneider, head of Small and Business Banking at Wells Fargo. “This kind of continued community investment showcases how important small businesses are to our communities and our commitment to help them thrive.”
HOPE Inside centers are located inside Wells Fargo branches in select markets, and feature Operation HOPE financial coaches who foster financial inclusion and economic empowerment. The branches feature redesigned and updated spaces created to deliver one-on-one consultations, improve digital access, and offer financial health workshops. “Small businesses are the backbone of our communities, and we want to provide them with the tools and resources they need to succeed,” said Michael Martino, head of Banking Inclusion Initiative at Wells Fargo. “Expanding HOPE Inside to support small businesses is a natural evolution of our work with Operation HOPE and reinforces our shared vision of building stronger, more financially resilient communities.” The expansion is part of a broader national effort through Wells Fargo’s Banking Inclusion Initiative to bring HOPE Inside to 50 markets across the U.S. by 2026. Currently at 30 HOPE Inside centers, serving over 100 branches, the impact of the program has helped more than eleven thousand clients since launching in 2022. All services offered through HOPE Inside are at no cost and available to community members, whether they are Wells Fargo customers or not.