MoneyLion Faces $1.75M Hit in CFPB Settlement on MLA Charges
Hey FinTech Fanatic!
MoneyLion will pay $1.75 million to settle a CFPB lawsuit alleging it charged service members more than the 36% interest-rate cap allowed under the Military Lending Act.
The bureau said the FinTech tied access to low-APR loans to mandatory memberships costing up to $29 per month and restricted cancellations until borrowers paid off their loans.
Under the settlement, MoneyLion is barred from offering credit above the MLA cap for covered borrowers. It also can’t block users from canceling memberships or prevent borrowers from paying off loans using their credit reserve accounts.
This case lands as the CFPB is transferring its cases to DOJ, according to recent updates from the bureau’s union.
That sets the backdrop for today’s enforcement landscape.
Now, just shifting gears for a moment…
Following yesterday's coverage of Klarna's stablecoin debut, a major talking point has surfaced today that is worth keeping an eye on:
👀 Rumor: Revolut may be preparing its own stablecoin after securing MiCA approval, with a live bet already up on Polymarket.
What do you think?👉 Vote here in the quick poll!
True or False? Let me know your thoughts on the Revolut stablecoin talk. And while that simmers, here are the other FinTech moves of the day. Let’s get into it👇
Cheers,
#FINTECHREPORT
🌍 Euromoney’s report, Europe’s Best Digital Banks: The Future of Retail Banking, highlights the top 20 banks setting the standard in digital strategy and customer experience 👇
FINTECH NEWS
🇦🇹 Raiffeisen Bank International joins European Payments Initiative as Acceptor PSP. By joining EPI as an Acceptor PSP, RBI will enable merchants within its network to accept Wero payments, facilitating seamless and secure transactions across multiple channels, including e-commerce, as well as point-of-sale transactions.
🇺🇸 Robinhood’s prediction market outpaces rivals with 9 billion contracts and 1 million users. Robinhood is expanding deeper into the world of prediction markets and derivatives, with the trading app reporting rapid user uptake in its new contracts and announcing plans to operate a regulated futures and derivatives exchange.
🇺🇸 MoneyLion to pay $1.75M to settle CFPB lawsuit accusing it of bypassing the Military Lending Act’s 36% interest cap through mandatory membership fees tied to loans for service members. The settlement bans the FinTech from exceeding the cap in any form and follows CFPB claims that borrowers were forced to keep paid memberships and sometimes couldn’t cancel them.
PAYMENTS NEWS
🇦🇺 PayPal launches Xoom in Australia. This expansion enables Australians to easily and securely send money to family and friends in over 150 countries, supporting more than 100 currencies. With Xoom, Australians can choose to transfer funds directly to recipients’ bank accounts, mobile wallets, or opt for cash pick-up or home delivery services.
🇰🇷 KakaoBank plans to launch its own won-pegged stablecoin and seeks fresh hires. Kakao is reportedly establishing blockchain infrastructure for its own stablecoin and has opened new recruitment for blockchain service backend developers.
🇮🇳 Navi aims to become a major UPI player as it scales credit line offerings. Navi Technologies CEO Rajiv Naresh says the FinTech aims to capture a significant share of the UPI ecosystem by investing in credit line products, strengthening tech infrastructure, and increasing customer awareness.
🇺🇸 U.S. Bank is testing custom stablecoin issuance on the Stellar Network. The collaboration reflects SDF’s mission: helping to unlock equitable access to the global financial system by making the rails beneath everyday financial services more inclusive, interoperable, and efficient.
OPEN BANKING NEWS
🇨🇭 Open Banking launches in Switzerland. The roll-out allows individuals to consolidate account information from multiple banks into a single application to share that data securely with non-bank financial apps. Customers at eight Swiss banks and two licensed third-party providers can aggregate their accounts and view balances, transactions, and spending insights in one unified dashboard.
REGTECH NEWS
🇪🇸 India's $38B antitrust threat puts Apple's in-app payment control at risk. India changed its competition law in 2024 to let regulators calculate penalties using a company's global turnover rather than domestic revenue. That shift exposes Apple to a maximum penalty of up to 10% of its worldwide revenue for the last three fiscal years.
🇮🇳 Paytm Payment Services gets full online payment authorisation from RBI. The licence further strengthens Paytm’s position as an online merchant payment processor. In August 2024, the company secured the required clearances from the Union Finance Ministry, paving the way for the PA licence.
DIGITAL BANKING NEWS
🇨🇳 FinTech firm Revolut plans to set up in Hong Kong as Paul Chan touts the city’s strengths in the UK. The move comes as Hong Kong officials court global investors and highlight renewed confidence in the city’s business environment. Keep reading
🇪🇸 N26 expands its offering with personal loans in Spain. N26 introduces a flexible overdraft with a fixed interest rate of 11.63% APR. With these new products, N26 reinforces its commitment to offering flexible, transparent, and competitive financial solutions adapted to the real needs of its clients.
🇿🇦 Billionaire Patrice Motsepe-backed bank TymeBank hits 12 million clients. Incoming CEO Cheslyn Jacobs says TymeBank has reached 12 million customers, putting it on par with or ahead of several major South African banks as competition intensifies.
🇨🇳 Mox Bank launches Travel Pick & Go insurance. The bank introduced the product to meet rising customer demand for flexible, transparent, and convenient travel protection ahead of the festive travel season, providing coverage that can be tailored to a wide range of journeys.
🇧🇷 Nu Empresas launches Collections Assistant, a complete and free billing solution to eliminate operational effort and give entrepreneurs more confidence. With it, Nu Empresas clients gain greater control over their receivables, optimising this management, preventing payment delays, and improving cash flow.
BLOCKCHAIN/CRYPTO NEWS
🇺🇸 MoonPay joins the “Dual License Club” after securing a NYDFS limited-purpose trust charter. According to a press release, the new license brings further regulatory compliance measures to the firm’s 30 million customers and nearly 500 client and partner companies. MoonPay says it is now fully licensed in the US and regulated in the UK, EU, Canada, and Australia.
🇬🇧 Xapo Bank opens access to BTC-Denominated Yield Product, following $100 million initial phase. The new yield product sits alongside Xapo Bank’s suite of wealth products, including Bitcoin and USD savings accounts, giving members a trusted way to grow their wealth while maintaining the safety and simplicity of the Xapo product suite.
🇺🇸 PayPal launches $1m bitcoin sweepstakes for crypto transactions in the US. Participants can gain entries by making crypto transactions on PayPal or through a no-purchase mail-in option, with prizes ranging from $500 to $100,000 in bitcoin for U.S. residents 18 and older.
🇧🇷 The Central Bank will authorize tests of a system that could generate R$10 trillion in RWA tokens in Brazil. With the approval of the Central Bank, the system is now undergoing supervised testing. This phase will last up to 120 days and includes simulations of the issuance, registration, settlement, and monitoring of digital promissory notes.
🇬🇧 Tezos community to benefit as fees are eliminated on Tez delegation rewards for Revolut customers. The change made by Revolut comes as the Tezos ecosystem continues to simplify network participation following the recent Rio protocol upgrade, which reduced network cycles to just one day.
PARTNERSHIPS
🇬🇧 Nasdaq AxiomSL expands RegTech deployment with Revolut, accelerating global growth. The growing partnership will see Nasdaq support Revolut’s global expansion, helping to ensure rapid and scalable compliance with new requirements, reducing the complexity of maintaining separate reporting frameworks for each country.
🌍 UnionPay International to expand card acceptance with Amazon payment services across the MENA region. Once the integration is complete, millions of UnionPay cardholders will be able to access a frictionless payment experience with Amazon Payment Services' merchants.
🇫🇮 Tuum secures strategic partnership extension with Multitude Bank to power long-term growth and innovation. The agreement reinforces Tuum’s role as a trusted core banking technology partner while underscoring Multitude Bank’s strategy of working with best-in-class technology innovators to deliver scalable, efficient, and customer-centric banking solutions.
🇵🇭 HitPay and Visa launch affordable card payments for Philippine SMEs. The collaboration will enable local merchants to process in-store and online transactions. Through the Visa Acceptance Platform, HitPay will offer businesses access to payment capabilities, including EMV-certified card readers and mobile-based solutions.
🇧🇷 Paysafe enables Brazilian gamers to pay for Boosteroid by Pix. Through Paysafe, Brazilian gamers wanting to access Boosteroid’s extensive collection of video games can now pay for their subscriptions using Pix, the country’s most popular payment method, as well as by Boleto Bancário.
🇬🇧 Endava and Paysafe unite to redefine the future of payments and digital communities. Paysafe Chief Product Officer Bob Legters said the company’s partnership will marry Paysafe’s global payments expertise with Endava’s AI-driven engineering to deliver faster product rollouts, higher conversion rates, and more sophisticated digital experiences for partners and users.
🇲🇽 Mastercard and L’Oréal to transform the future of beauty commerce. By streamlining the credit-decisioning process and embedding financial products where salon professionals operate, Mastercard, L’Oréal, and Clara are making the process faster and easier, empowering more beauty professionals.
MOVERS AND SHAKERS
🇬🇧 The Bank of London CEO, Christopher Horne, reportedly steps down. He will be succeeded by Chief Financial Officer Tony Bullman, who joined the UK clearing bank from UBS in March. Keep reading
🇦🇺 Tyro Payments CEO departs, interim named. Davey will leave the company on December 5, with Nigel Lee slated to take over the role in mid-January. During the five-week interim period, Chief Financial Officer Emma Burke will serve as acting CEO.
🇫🇷 Swan appoints Camille Tyan as CEO to support its new growth phase. Swan announces Camille Tyan as CEO to drive operational excellence and European expansion, while co-founder Nicolas Benady transitions to President to focus on long-term strategy during a period of exceptional growth.
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