Banking
TabaPay eyes bank charter
TabaPay announced on Wednesday its intention to acquire Transact Bank, a deal supported by $155 million in funding led by FTV Capital, which will grant an OCC banking license upon completion, subject to Federal Reserve approval.
Payments Dive Trendline on Top 5 stories from Payments Dive
M&A activity in the payment industry accelerates in the second half of the year, with deals such as Stripe's potential acquisition of PayPal and Fiserv's possible sale of its debit network drawing attention.
Stablecoins lose ground
The Jackson Hole Economic Policy Symposium, which concluded last Friday, focused on payment innovation, with tokenized deposits taking center stage. In his speech, Pablo Hernandez de Cos, General Manager of the Bank for International Settlements, noted that tokenized deposits operate within a two-tier banking system, maintaining a close link between deposits and credit and reducing disintermediation risks, while stablecoins exhibit notable shortcomings in cross-chain interoperability. Meanwhile, the U.S. real-time payment system is accelerating its cross-border expansion, and the tokenized deposit network is also advancing.
Banks undertake stablecoin effort
Six of the largest U.S. banks and several international financial institutions announced on Tuesday that they will jointly establish a new enterprise aimed at issuing compliant stablecoins. The project will initially focus on U.S. dollar-backed stablecoins, with plans to expand to other G7 currencies, and is expected to launch in the first half of 2027. This move comes on the eve of the U.S. Genius Act taking effect, as the banking sector actively responds to the potential impact of stablecoins on deposits.
Card fees have staying power
Merchants' long-term attacks on bank card fees have seemingly failed to shake their foundation. From congressional legislation to Federal Reserve regulation and court settlements, the financial industry has advanced step by step, keeping fees firm. Consumers' preference for points and credit makes this fee an unshakeable part of the payment ecosystem.
RTP gears up for int’l reach
The Clearing House is preparing to extend its real-time payment network RTP to international cross-border payments, aiming to launch a pilot in the first half of 2027, with BNY Mellon confirmed to participate. This move will compete with the cross-border expansion of the Federal Reserve's FedNow system.
Citi scoops up card rewards firm
Citi announced Thursday an agreement to acquire Kard Financial, a New York City-based rewards platform, to bolster its consumer cards business. The acquisition aims to combine Kard's technology and merchant relationships with Citi's scale, enabling more personalized rewards and offers. Terms were undisclosed but deemed immaterial to Citi's $2.9 trillion-asset financials.
FedNow extension wins support
美联储提议修订FedNow服务，允许美国银行通过中介或非美国代理银行进行跨境转账。该提案获得Stripe、Visa、Wise等37家企业和个人的评论支持，行业普遍认为这将提升美国在国际支付领域的竞争力。
Augustus aims to speed payments
The Federal Deposit Insurance Corporation (FDIC) approved Augustus's (formerly Ivy) deposit insurance application on July 31. The company aims to replace traditional paper-based clearing methods with code, accelerate payment settlement to meet artificial intelligence needs, and plans to build a "global dollar bank" for financial institutions worldwide.
FIS seeks to sell parts of capital markets unit
After reporting second-quarter results, FIS announced it would evaluate selling certain products in its capital markets division that do not align with its overall strategy. Revenue in that unit grew only 3.5%, and professional services revenue fell 17%, prompting the company to lower its full-year guidance. CEO Stephanie Ferris said she would respond proactively and dismissed competitive concerns from Visa's Pismo.