Latest news with #NilsonReport
Yahoo
30-07-2025
- Business
- Yahoo
Bilt's new cards expand options
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Bilt Technologies, which provides credit cards aimed at rent payments, will revamp its offering next year with its new issuing partner Cardless, pivoting away from its ties to Wells Fargo. Bilt plans to have three cards with Cardless, starting in February, including two new cards with annual fees, as it expands from a single no-fee card, according to a press release earlier this month. The company has sought to build a business offering renters a way to earn loyalty points on their monthly rent payments to landlords. Spokespeople for the companies declined to discuss how the new cards' terms or rewards will differ from the Bilt Rewards card Wells Fargo has issued since 2022. The company has promised more details this fall. The Wells Fargo card, tied to the Mastercard network, touts an ability to earn reward points on rental payments without a transaction fee. Bilt will move card holders from Wells to Cardless in February 2026, according to the July 10 release. Apartment dwellers typically have not paid their monthly rents with credit or debit cards because of the interchange costs landlords would assume, or pass along to tenants, by accepting card payments. The interchange fee terms under the Bilt-Wells agreement meant the bank relied more on non-rent spending for interchange revenue. New York-based Bilt and Wells Fargo found that some cardholders were using the card for their rent and for small charges, like a coffee, to meet a requirement of posting at least five transactions per payment period to earn rewards. Wells Fargo lost as much as $10 million per month on its Bilt card because of such user behaviors, the Wall Street Journal reported in June 2024, citing people familiar with the matter. The bank had predicted that about 65% of spending on the Bilt card would be nonrent, but it turned out that only about 35% of card volumes were for charges not associated with rent, according to the Journal report. Because of the financial losses, San Francisco-based Wells Fargo decided to quit its Bilt partnership three years before the 2029 end date, the Journal reported July 10, citing people familiar with the matter. A Wells Fargo spokesperson declined to comment via email. A Bilt spokesperson said the company declined to comment beyond the July 10 press release that detailed the new cards with Cardless and its latest capital raise. San Francisco-based Cardless, a startup that issues cards for companies including Alibaba Group, Qatar Airways and Simon Property Group, also declined to comment. In effect, Bilt's card offered point rewards coupled with a 30-day free loan, or float, on rent payments for people who did not carry a card balance, reducing income for Wells, said David Robertson, publisher of the Nilson Report, a research publication on the card and payments industry. 'If you're not getting enough people who are revolvers to subsidize the portfolio of the people who are just transactors, you're in trouble, especially on a card that doesn't have the (annual) fee,' Robertson said Wednesday in an interview, adding 'I can't imagine why (Wells Fargo) made the deal to begin with.' Bilt will need to 'tailor the card more to people who use it more broadly and revolve balances to address the revenue shortfall that Wells experienced,' TD Cowen analyst Moshe Orenbuch wrote in a July 23 email. 'We assume that the new manager of the program will design the products to attract consumers that would be more profitable,' he said. Bilt must become its customers' default card and earn top-of-wallet use status if the company and its partners want to generate a successful financial return, Robertson said. Bilt, which is valued at $10.75 billion based on a $250 million capital raise this month, said in the July 10 press release that its revenue will top $1 billion by the first quarter of 2026. The company says its payment platform includes 25% of U.S. apartment buildings and 40,000 merchants. Bilt's '2.0' revamp with Cardless represents the company's foray into a fleet of three tiered card brands. A no-fee card will remain, joined by two cards with annual fees of $95 and $495, respectively. The company is also expanding from rental to mortgage payments, student housing and condominium HOA fees. 'You have to make the rewards component so compelling that it justifies the $495,' Robertson said. 'Maybe the answer to that as a card issuer is in co-partnerships, not cobranding. What kind of deals can you give the cardholder as an incentive for spending that also provide additional value? That might not simply be the bonus points, it might be discounts for you-name-it.' The Bilt-Cardless cards enter a landscape of consumer credit cards in which American Express, Citibank and JPMorgan Chase have all recently announced fee and benefit changes to their premium rewards cards. 'You have Chase and AmEx … raising their annual fees, but also doubling down again in that very competitive world of trying to find out what's the most compelling value proposition to generate spending,' Robertson said. One benefit Bilt might realize, he said, is that banks have raised premium card fees to near $800 annually, 'so $495 doesn't look so bad.' Bilt has 22 travel partners for points redemptions, including 17 airlines and five hotel chains. The points can also be redeemed for gift cards at retailers or to pay for Lyft rides. Former American Express CEO Ken Chenault joined Bilt as board chairman in January 2024, when General Catalyst, the venture capital firm where he serves as chairman, helped to raise $200 million for Bilt. Roger Goodell, the National Football League commissioner, also joined Bilt's board last year. Wells Fargo and Mastercard were among Bilt investors when the company announced a $60 million capital raise in September 2021, along with more than a dozen real estate companies. Recommended Reading JPMorgan, Amex flash new cards
Yahoo
28-07-2025
- Business
- Yahoo
PayPal to let U.S. merchants accept payment in more than 100 cryptocurrencies
Fintech giant PayPal launched a new payment option on Monday that will let smaller U.S. merchants accept more than 100 cryptocurrencies, including mainstays like Bitcoin and Ethereum but also zanier options like Trump's memecoin and even the novelty token Fartcoin. Any U.S. business using PayPal's online payments processing platform can opt in, said a spokesperson. PayPal will charge merchants a promotional fee of 0.99% on transactions for the first year and then up the charge to 1.5%, Frank Keller, an executive vice president, told Fortune. Those fees are less than the 1.57% average rate that U.S. businesses paid to credit card companies in 2024, according to the Nilson Report. 'There's a worldview where you can imagine that the world is moving on chain,' said Keller, referring to putting data on blockchains. 'Is that happening overnight? No. Some people say long time periods. Other people say very short time periods. I think we will see movement.' To settle the transactions, PayPal will let users connect existing crypto wallets they own to a checkout page. Depending on a buyer's crypto wallet, PayPal will sell the cryptocurrency on a centralized exchange like Coinbase or a decentralized exchange like Uniswap. The proceeds of that sale will be converted into PayPal's own stablecoin, which will then be converted into U.S. dollars sent back to the merchant. 'Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City,' Alex Chriss, president and CEO of PayPal, said in a statement. 'Using PayPal's open platform, the business can accept crypto for payments.' The move to let customers pay businesses with crypto is PayPal's latest push into digital assets. Among the Fortune 500, the fintech giant has been an early adopter of crypto. In 2020, PayPal said that U.S. users would be able to buy, sell, and hold a select group of cryptocurrencies, including Bitcoin and Ethereum. It then expanded that capacity to Venmo. But during the so-called crypto winter of 2022, PayPal ratcheted down its public rhetoric on crypto. Now, as crypto markets are soaring and President Donald Trump's administration casts a favorable eye on digital assets, it's charging ahead. In September it let businesses buy, hold, and sell crypto from their merchant accounts. And its stablecoin PYUSD, which the company launched in 2023, has increased its market capitalization about 70% since the beginning of the year to about $850 million, according to CoinGecko. PayPal plans to expand the ability for merchants to accept crypto to larger enterprise customers in the U.S. and globally, but a spokesperson declined to provide a timeline. This story was originally featured on
CNBC
28-06-2025
- Business
- CNBC
Stablecoins go mainstream: Why banks and credit card firms are issuing their own crypto tokens
A $44 billion IPO. A Senate bill with bipartisan momentum. And now, a wave of Fortune 500 firms launching crypto tokens of their own. Stablecoins — once a niche corner of the cryptocurrency world — are entering the corporate and policy mainstream, potentially reshaping how money moves in the United States and around the world. "Many of the users out there today are not aware of stablecoins, or not interested in stablecoins, and they should not be," said Jose Fernandez da Ponte, PayPal's SVP of blockchain, crypto and digital currencies. "It should just be a way in which you move value, and in many cases, is going to be an infrastructure layer." For corporations, stablecoins are an opportunity to slash millions in transaction fees and turbocharge payment infrastructure with instantaneous settlement. USDC issuer Circle's long-awaited public debut exposed a wave of pent-up demand for digital dollars as investors sent the stock soaring as much as 750% in June. Partnerships, and competition, quickly followed. Coinbase announced a deal with e-commerce platform Shopify to bring USDC payments to merchants. Payments firm Fiserv announced a stablecoin to pair with the 90 billion transactions it processes every year. "We're entering the utility phase right now, where the technology has matured. It's gotten fast, it's gotten cheap," said Jesse Pollak, head of base and wallet at Coinbase. "It's gotten easy to use, and that's leading to real-world adoption across businesses and consumers." Base is Coinbase's Ethereum layer-2 network, designed to make blockchain applications faster, cheaper, and more accessible to developers and users. Merchants are a particular focus for stablecoins, as payment processing fees for these businesses totaled a record $187.2 billion in 2024, according to the Nilson Report. Payment companies are looking to fend off potential disruption by stablecoin issuers. Mastercard this week announced support for four stablecoins on its Multi-Token Network. The private blockchain is targeted toward institutions and promises 24-hour settlement. Visa's CEO told CNBC the payment processor is modernizing its infrastructure with the help of stablecoins. "Visa and MasterCard are leaning into the disruption," said Nic Carter, founding partner at Castle Island Ventures. "They're trying to disrupt themselves, so they seem to be ahead of the curve." JPMorgan took a slightly different approach to the crypto token boom on Wall Street. The financial giant launched a token backed by commercial bank deposits rather than U.S. dollars. JPMorgan's Naveen Mallela, global co-head of Kinexys, the bank's blockchain unit, told CNBC the JPMD token would allow for round-the-clock settlement for institutional clients looking for faster, cheaper transactions while staying connected to the traditional banking system. The boom in crypto adoption on Wall Street is bolstered by growing support in Washington. The Senate passed its framework of rules for stablecoins, called the GENIUS Act. The bill includes guidelines for consumer protections, reserve requirements for issuers, and anti-money laundering guidance. Stablecoins and other cryptocurrencies have faced criticism for their use in illicit activity, and some Democrats argue the bill doesn't do enough to address those concerns. Those lawmakers also argue the bill doesn't curtail conflicts of interest, including the recent launch of a stablecoin tied to President Donald Trump through World Liberty Financial. The crypto-focused firm run by his family is behind the dollar-pegged token USD1. When asked about Trump's ties to crypto projects in his name, the White House told CNBC there are no conflicts of interest and the president's assets are in a trust managed by his children. "I think it was a mistake for Trump to have a Trump-affiliated DeFi project issue a stablecoin. I think that really set back his stablecoin legislative agenda," Carter said. "I think we could do it a lot more in terms of tackling these conflicts of interest. And I completely understand the Democrats when they try and weed this out." Watch the video above to learn why corporate giants are racing to launch their own crypto tokens
Yahoo
15-05-2025
- Business
- Yahoo
Euronet Teams Up With Visa to Boost Global Money Transfers
Euronet Worldwide, Inc.'s EEFT Money Transfer unit recently entered into a partnership with the leader in digital payments, Visa Inc. V. The unit includes Ria Money Transfer, Xe and Dandelion. This collaboration will enable Euronet to integrate Visa Direct into its services, enhancing its reach and expanding its Dandelion network to support real-time payouts to more than 4 billion debit cards. EEFT customers can now transfer money directly to Visa debit cards worldwide within minutes, using only the recipient's name and card number. The transaction process is secured by Visa's state-of-the-art payment security protocols alongside Euronet's rigorous compliance standards, ensuring safety and convenience for both senders and recipients. The recent collaboration is expected to enhance the digital capabilities of Dandelion, which span more than 3.2 billion mobile wallets, 4 billion bank accounts and 624,000 physical locations in nearly 200 countries and territories. Moreover, the move of integrating Visa Direct in Euronet's services to aid the debit cardholders seamlessly and securely transfer money across any corner of the globe seems to be a time-opportune one amid the widespread usage of debit cards for conducting purchases. It will also enable EEFT's Money Transfer segment to stay aligned with modern payment trends, offering a more comprehensive and agile digital payout infrastructure. Per the World Bank, more than half of the people aged 15 and above possess a debit card. The Nilson Report projects that global debit and prepaid card purchases are likely to exceed $1.1 trillion by 2029. Dandelion's enhanced capabilities as a result of the latest initiative are expected to benefit the Money Transfer segment. Dandelion is a premier platform specializing in real-time cross-border payments. It enables seamless transaction processing and settlement for both individuals and businesses, offering diverse payout options such as direct bank deposits, cash pickups and mobile wallet credits. The platform serves as the payment infrastructure behind brands like Xe and Ria, while also supporting a wide network of third-party banks, fintech companies and major technology firms. Revenues in the Money Transfer unit advanced 9% year over year in the first quarter of 2025. The segment processed transactions of 44.6 million in the quarter, up 10% year over year. Shares of Euronet have gained 7.1% year to date against the industry's 2.7% decline. EEFT currently carries a Zacks Rank #3 (Hold). Image Source: Zacks Investment Research Some better-ranked stocks in the Finance space are Capital Bancorp, Inc. CBNK and Enterprise Financial Services Corp EFSC, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The bottom line of Capital Bancorp outpaced estimates in two of the last four quarters and missed the mark twice, the average surprise being 14.78%. The Zacks Consensus Estimate for CBNK's 2025 earnings indicates an improvement of 28.6% from the 2024 figure. The consensus mark for revenues implies growth of 32.4% from the 2024 figure. The consensus mark for CBNK's earnings has moved 10.4% north in the past 30 days. Enterprise Financial Services earnings outpaced estimates in each of the trailing four quarters, the average surprise being 12.79%. The Zacks Consensus Estimate for EFSC's 2025 earnings indicates an improvement of 6.6% from the 2024 figure. The consensus mark for revenues implies growth of 5.5% from the 2024 figure. The consensus mark for EFSC's earnings has moved 5.5% north in the past 30 days. Capital Bancorp stock has gained 15.4% year to date. However, shares of Enterprise Financial Services have lost 3.4% in the same time frame. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Visa Inc. (V) : Free Stock Analysis Report Euronet Worldwide, Inc. (EEFT) : Free Stock Analysis Report Enterprise Financial Services Corporation (EFSC) : Free Stock Analysis Report Capital Bancorp, Inc. (CBNK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-04-2025
- Business
- Yahoo
U.S. Bank's Elavon Jumps Two Spots in 2025 Nilson Report Ratings
Payments leader moves from 7th to 5th in latest report, spotlighting payments growth as ranked by Mastercard and Visa purchase volume MINNEAPOLIS, April 09, 2025--(BUSINESS WIRE)--Elavon, the merchant services payment provider of U.S. Bank, has moved up two spots in the 2025 Nilson Report to become the fifth-largest U.S. merchant acquirer and the second-largest bank-owned acquirer as ranked by Mastercard and Visa purchase volume. The Nilson Report, a stalwart of news and analysis of the global card and mobile payment industry, released the rankings at the beginning of April. Per the Nilson Report (Issue 1282, March 2025), Elavon is the fifth-largest acquirer of Visa and Mastercard volume in the United States, up from seventh in the prior year. For total purchase volume (Visa, Mastercard, and other credit and pin-debit), Elavon is the sixth-largest provider in the United States, up from seventh. Elavon remained the fourth-largest acquirer of card-not-present purchase volume, an indicator of eCommerce sales. "Our innovative, tech-led payment products and solutions are valuable to businesses we serve, from your favorite local restaurant or shop to some of the largest hospitality brands and airlines in the world," said Jamie Walker, chief executive officer at Elavon. "We intend to continue to deliver what our clients need and solve the business and payment processing challenges they face." Elavon is a global payments leader, processing more than $576 billion in transactions worldwide annually. Backed by U.S. Bank, the fifth-largest commercial bank in the United States, Elavon offers a broad range of technologies and scalable payment solutions to businesses of all sizes. Elavon provides payment processing to eight of the Top 10 airlines globally and is the trusted payments partner for seven of the Top 10 largest U.S. hotel brands. Elavon has secured a number of strategic partnerships in recent years, resulting in increased purchase volume and customer growth. These partnerships include Delta Air Lines Tap-to-Pay on iPhone integration, Virgin Atlantic, Southeast Pennsylvania Transit Authority (SEPTA), the California Restaurant Association, and many others. Salucro, the healthcare payments company acquired by U.S. Bank in 2024, has been an attractive addition for clients and prospects in the healthcare sector. In addition, Elavon has recently launched innovative payment products and solutions, including its Avvance point-of-sale lending solution, Elavon Payments Gateway as a unified, digital, cloud-based payments solution, and talech terminal as a simple point-of-sale solution to help small businesses more efficiently run their businesses. "As the payments landscape continues to evolve at lightning speed, we are on the forefront of delivering solutions that businesses—no matter their size or industry—seek to ensure a seamless, simple payment experience for their customers," Walker said. For more information, visit About Elavon Elavon is owned by U.S. Bank (NYSE: USB), the fifth-largest bank in the United States. It provides end-to-end payment processing solutions and services to more than 1.3 million customers in the United States, Europe, and Canada. As the leading provider for airlines and a top five provider in hospitality, healthcare, retail, and public sector/education, Elavon's innovative payment solutions are designed to solve pain points for businesses from small to the largest global enterprises. About U.S. Bancorp U.S. Bancorp, with more than 70,000 employees and $678 billion in assets as of December 31, 2024, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses, including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World's Most Ethical Companies and Fortune's most admired superregional bank. Learn more at Deposit products are offered by U.S. Bank National Association. Member FDIC. Services may be subject to credit approval. Eligibility requirements, restrictions and fees may apply. See a business banker for details. View source version on Contacts Media Contact: Joseph 919.260.2994
