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How to Win Card Present Chargebacks Every Time

Chargebacks were initially developed to safeguard credit card users from fraudulent or unauthorized transactions, serving as a critical measure to prevent financial loss for consumers. However, they often hurt businesses. Companies typically incur an additional $3.75 in fees and operational costs for every dollar lost to fraud. The average business cost to fight chargeback rose from $156 in 2021 to $165 in 2022.

By 2023, chargebacks had cost U.S. merchants an estimated $11 billion. Chargebacks often impact businesses adversely, notably since 49% are filed accidentally and could be avoided with appropriate preventative strategies. Although there’s no sure way for a seller to prevail in a chargeback dispute, even when rightfully entitled, several measures can notably improve their likelihood of success.

What Is a Chargeback? Why Does It Happen?

To effectively manage chargebacks, it’s crucial to grasp what they are and why they occur. A chargeback is a safeguard for consumers, allowing them to initiate a dispute if they do not recognize a charge on their account statement.

When a cardholder disputes a transaction, suspecting it might be fraudulent, the bank that issued the card investigates the claim to ascertain its validity.

When faced with a chargeback, merchants have the burden of proof to demonstrate the transaction’s legitimacy. Failing to convince the issuing bank can result in the transaction being deemed fraudulent, leading to the reversal of the transaction amount to the customer. Additionally, the merchant may incur a fee of upwards of $100, depending on the bank’s policies.

Chargebacks typically stem from one of three sources:

Merchant Error occurs when errors are made during the transaction process or in managing customer interactions. Overlooking these mistakes may prompt customers to request a chargeback.
Criminal Fraud: This type of fraud involves the unauthorized use of a cardholder’s payment details to make purchases, often leading to a chargeback since the cardholder did not authorize the transaction.
Friendly Fraud: This happens when the chargeback process is misused, either through deliberate deceit to secure free goods or due to a genuine misunderstanding by the cardholder.

Understanding the reasons behind a chargeback is not merely bureaucratic but offers valuable insights. Knowing the root cause allows merchants to address and rectify the underlying issues, encouraging more sustainable solutions rather than temporary fixes.

Understanding Chargeback Reversals

A chargeback reversal occurs when a merchant challenges a customer’s chargeback claim to recover lost revenue. It involves presenting evidence that the original transaction was legitimate and should not have been disputed. A successful reversal restores the funds initially withdrawn due to the chargeback.

The payment industry lacks standardized terminology, resulting in multiple terms describing the same process. Common synonyms include:

Chargeback dispute
Chargeback representment
Chargeback response
Dispute response

Regardless of terminology, each phrase refers to the merchant’s action to dispute an invalid chargeback and reclaim lost funds.

With a clear understanding of chargeback reversals, you can now explore when and how to exercise your right to respond effectively.

What Qualifies as Strong Evidence for a Chargeback Reversals

Compelling evidence refers to the documentation merchants submit to dispute chargebacks. It demonstrates that a transaction was legitimate and counters the customer’s claims. The nature of compelling evidence depends on the specific reason code, which details the customer’s rationale for disputing the transaction. Successfully addressing the reason code with relevant documentation is essential for effectively resolving disputes.

Common Examples of Compelling Evidence

Transaction Records: Signed receipts, invoices, or contracts clearly showing the customer consented to the transaction.
Delivery Documentation: Shipping records or delivery confirmations, ideally accompanied by customer signatures or photographic proof of delivery.
Digital Evidence: IP addresses, device identifiers, and geolocation data linking customers to online purchases.
Communication Logs: Emails, chat transcripts, or call recordings illustrating interactions and agreements with the customer.
Authentication Records: Documentation of successful Address Verification System (AVS) and Card Verification Value (CVV) matches, along with evidence of two-factor authentication.

Matching Evidence to Specific Chargeback Reasons

Unauthorized Transactions: Provide identity verification data, including AVS/CVV matches and digital records (IP address, device ID) connecting the cardholder to the purchase.
Merchandise Not Received: Supply shipment tracking and delivery confirmations showing successful delivery to the customer’s verified address.
Product Not as Described or Defective: Submit accurate product descriptions, original listing images, and any communications in which the customer acknowledges receipt or expresses satisfaction.
Credit Not Processed: Offer clear documentation confirming the refund was issued, specifying transaction dates, refunded amounts, and customer interactions regarding the refund.

Visa introduced Compelling Evidence 3.0 in April 2023, enabling merchants to leverage a cardholder’s purchase history when disputing chargebacks. Merchants can strengthen their defense against friendly fraud by providing evidence of two prior undisputed transactions sharing specific data points (IP address or device ID) with the transaction.

When You Can’t Fight Chargeback as a Business?

As a business, there are specific situations where disputing a chargeback may not be possible or advisable. Understanding these scenarios can help you manage chargebacks more effectively:

Missed Response Deadlines: Each card network and issuing bank sets specific time limits for merchants to respond to chargebacks, commonly around 30 days from the date the chargeback was filed. If you fail to respond within this timeframe, you forfeit the right to dispute, resulting in an automatic loss of revenue from the disputed transaction.
Merchant Error: Chargebacks arising from merchant errors—such as duplicate charges, incorrect amounts, or non-compliance with card network rules—are typically the merchant’s responsibility. Disputing these chargebacks is generally unsuccessful, as the error originated from the business’s operations.
Valid Customer Disputes: When a customer has a legitimate reason for a chargeback, such as not receiving the product or receiving a defective item, disputing may not be appropriate. In these cases, it’s often better to accept the chargeback and address the underlying issue to prevent future occurrences.
High Chargeback Ratios: Consistently high chargeback ratios can lead to penalties from card networks and acquiring banks, including higher fees or terminating your merchant account. If your business experiences frequent chargebacks, it may be more prudent to focus on identifying and addressing the root causes rather than disputing individual cases.
Lack of Compelling Evidence: To successfully dispute a chargeback, you must provide compelling evidence that the transaction was legitimate. Disputing the chargeback is unlikely to succeed if such evidence is unavailable or insufficient.

How to Fight Chargebacks: A Step-by-Step Process

When it’s time to dispute a chargeback, follow these steps to maximize your chances of successfully reversing the chargeback and reclaiming your lost revenue:

1. Know When You’ve Received a Chargeback

Fighting a chargeback effectively is impossible if you aren’t aware one has been filed. Notification methods vary by payment processor, ranging from traditional mail and email notifications to online merchant portals. Identify your processor’s notification method clearly and regularly monitor your account or inbox to ensure no dispute slips past your attention.

First, set up alerts if your payment processor or bank offers them. Enabling notifications via email or SMS will help you stay informed about any new chargeback activity. Second, make it a habit to check regularly.

Establishing a daily or weekly routine to review chargeback activity for merchants handling multiple accounts can help catch issues early. Lastly, consider automating your tracking. Tools or services that centralize chargeback data and send immediate alerts can streamline the process, allowing you to respond quickly and efficiently.

2. Check the Chargeback Reason Code

Every chargeback includes a reason code provided by the cardholder’s bank, indicating why the transaction is disputed. Knowing the reason code is critical as it guides your response strategy by informing you exactly what type of compelling evidence is required.

When handling a chargeback, take the following actions. First, immediately review the reason code when you receive the chargeback notice. This code explains why the chargeback was filed. Next, use a reason code reference or database, such as the guides provided by Mastercard, Visa, AmEx, or Discover, to understand the specific requirements for that code. Finally, gather relevant evidence based on the reason code. This may include delivery confirmation, identity verification records, or detailed product descriptions to strengthen your case.

3. Check the Expiration Date

Chargebacks have strict deadlines. If you miss the deadline, you automatically forfeit your right to dispute, and the case will not proceed. Response times typically range from as short as 2 days to as long as 20 days from receipt of the notification, depending on your processor.

As soon as you receive a chargeback notice, identify the deadline for your response. To avoid last-minute issues, submit your chargeback response three days before the deadline. This buffer accounts for potential delays or unexpected complications. Lastly, avoid spending time and resources on disputes that have already expired. Instead, focus your efforts on active cases where you still have a chance to recover funds.

4. Calculate and Evaluate the ROI

Before fighting a chargeback, carefully evaluate whether disputing it is financially worthwhile by calculating the potential Return on Investment (ROI). This involves comparing the cost of resources needed (such as time, labor, or fees) against the transaction amount in dispute.

When evaluating chargebacks, consider the return on investment (ROI). Start by clearly defining your threshold—determine the minimum transaction amount worth disputing based on your internal resources and costs. Focus on cases where the potential recovery is significantly higher than the expense of fighting the chargeback to maintain a positive ROI. Finally, regularly reassess your process. As your system becomes more efficient, you may be able to lower your threshold, making it profitable to dispute a more significant number of cases.

5. Collect Compelling Evidence

Winning a chargeback dispute largely depends on providing strong and compelling evidence. The evidence must specifically counter the claim outlined by the reason code. General or irrelevant evidence will undermine your case, so tailor your documentation accordingly.

Examples by transaction type include:

Physical Goods:

Product descriptions and invoices.
Signed delivery confirmations or tracking records.
Proof of customer acknowledgment of receipt (emails, signed forms).

Digital Goods:

Records of user logins, downloads, or usage activity.
IP addresses and geolocation data connecting the cardholder to the transaction.
Evidence of security measures, such as periodic login verifications.

Services:

Customer-signed contracts or agreements.
Documentation proving delivery or fulfillment of the service.
Evidence of related customer activities (ticket scans, follow-up purchases).

Remember, never reuse generic evidence across different disputes. Constantly tailor your evidence directly to the specific dispute at hand.

6. Write a Strong, Clear Rebuttal Letter

The rebuttal letter is your primary means of communicating your case. It summarizes your strongest points, clarifies why the chargeback is invalid, and introduces your evidence in an easily understandable format.

Include the following key components to create a strong rebuttal letter for a chargeback. Start with a clear summary explaining why the chargeback claim is invalid. Reference the specific reason code and directly address the cardholder’s claims. Highlight your most compelling evidence, such as delivery confirmation, transaction logs, or communication records. Finally, keep the language concise and professional, ensuring the letter is easily read and effectively communicates your case.

7. Submit Your Response

Submission might seem straightforward, but in practice, it can be complex. Your response first goes to your payment processor, which reviews and decides whether to forward it to the cardholder’s bank. Therefore, presenting your dispute package professionally is critical.

To ensure a smooth submission process, organize your evidence logically and follow the processor’s guidelines, such as using the correct file types and arranging the documents properly. Clearly label your rebuttal letter and any supporting documents to avoid confusion. Submit the materials through your processor’s preferred method, whether an online portal, email, or fax, as this can help speed up the processing time. Finally, double-check your submission for completeness to prevent any delays or rejections caused by missing documents.

8. Monitor the Results

Chargeback dispute results are not always communicated quickly, and processors typically do not provide detailed outcome reports. However, actively tracking dispute outcomes is essential for refining future chargeback strategies.

Check with your processor regularly for updates on the status of your disputes. Internally document the outcomes, including win/loss ratios and case details, to maintain accurate records. Use this information to refine and strengthen your ongoing dispute strategy.

9. Analyze and Refine Your Process

Each chargeback offers valuable insights that can help you improve your strategy. Continuously analyze your performance to find areas for improvement. Refine processes based on your success and failure patterns, optimizing your efficiency and success rate over time.

To effectively track and analyze your chargeback disputes, focus on key metrics. Monitor reason codes to identify which dispute types you consistently win or lose. Analyze product types or categories to see if certain items are more prone to chargebacks. Review issuer trends by examining BINs (Bank Identification Numbers) to anticipate issuer decisions. Additionally, evaluate your internal processes to determine if specific team members or procedures lead to better outcomes.

Continuous improvement is essential. Regularly adjust your strategy, test new approaches, analyze the results, and repeat the process. This cycle helps enhance your dispute efforts and maximize your return on investment.

Conclusion

Winning card-present chargebacks requires a combination of proactive prevention, thorough documentation, and a strategic response process. While it is impossible to guarantee a victory in every dispute, merchants can significantly improve their chances by understanding the common causes of chargebacks, gathering compelling evidence, and following a structured dispute strategy.

Businesses can minimize chargeback losses and protect their revenue by staying vigilant with regular monitoring, meeting response deadlines, and continuously refining their processes. Additionally, using tools and services to streamline chargeback management can help merchants respond quickly and effectively. Ultimately, a well-prepared and informed approach is the key to reducing the financial impact of chargebacks on your business.

Frequently Asked Questions

Klarna Files for IPO to Raise $1 Billion at a $15 Billion Valuation

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The Swedish fintech company Klarna has moved forward with its much-awaited US IPO by publicly releasing its F-1 prospectus on Friday. This document provides crucial insights into Klarna’s business operations and financial standing. According to a Bloomberg report published last week, Klarna IPO aims to secure at least $1 billion through this public offering, targeting a valuation of approximately $15 billion.

In its latest financial disclosures, Klarna highlighted significant improvements, recording revenues of $2.81 billion in 2024, a substantial increase of 24% compared to the previous year. This is especially crucial as the company achieved profitability for the first time, reporting a net profit of $21 million after enduring substantial losses in prior periods.

However, specific details regarding the number of shares to be offered and their anticipated price range have not yet been disclosed. Investors and market watchers will have to wait until these critical aspects are defined, typically roughly a month or longer after the initial filing, to gauge whether Klarna can successfully meet its targeted fundraising goals.

Key Takeaways

The Swedish fintech company has filed for an IPO in the US, aiming to raise at least $1 billion. This move comes as Klarna seeks to capitalize on its recent financial rebound and strengthen its position in the competitive BNPL market.
Klarna reported revenues of $2.81 billion in 2024, reflecting a 24% increase from the previous year. Notably, the company achieved profitability for the first time, recording a net profit of $21 million, a significant turnaround from its $244 million loss in 2023.
Ahead of the IPO, Klarna secured an exclusive partnership with Walmart, replacing Affirm Holdings as its BNPL provider. This collaboration is expected to expand Klarna’s reach and boost its market presence in the US.
While Klarna’s IPO could set the tone for other fintech listings, it faces challenges from intensifying competition and growing regulatory scrutiny. Rival firms such as Affirm, Afterpay, and PayPal aggressively vied for market share, adding pressure on Klarna to maintain its growth momentum.

Klarna IPO For $15 Billion Valuation: A Bold Move Amidst Fintech Volatility

Klarna, the Swedish fintech giant renowned for its “buy now, pay later” (BNPL) services, has officially filed for an initial public offering (IPO) in the United States. The company aims to raise over $1 billion through the offering, positioning Klarna’s valuation at approximately $15 billion. This IPO underscores Klarna’s resilience and adaptability in the fintech sector while highlighting the growing prominence of BNPL services in global markets.

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Klarna’s prominent shareholders include Sequoia Capital, co-founder Victor Jacobsson, and Heartland A/S, an investment firm led by Danish fashion entrepreneur Anders Holch Povlsen. Before Klarna’s recent offering, Sequoia Capital held 78.8 million shares, representing more than 5% of the company’s outstanding shares. Heartland A/S, associated with the family behind fashion retailer Bestseller, owned 37.1 million shares, while Jacobsson held 31.4 million.

Additionally, Klarna maintains strategic partnerships with several leading global brands, including cosmetics retailer Sephora, sportswear leader Nike, and accommodation platform Airbnb.

Established in 2005 by Sebastian Siemiatkowski, Victor Jacobsson, and Niklas Adalberth, Klarna set out to revolutionize online shopping by simplifying payment processes. The company’s BNPL model allows consumers to split purchases into manageable installments, offering an attractive alternative to traditional credit systems. Over the years, Klarna has significantly expanded its services, catering to over 150 million users globally and partnering with more than 675,000 merchants, including prominent retailers such as H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike, and Airbnb.

Klarna’s financial trajectory has experienced significant fluctuations. During the fintech boom in 2021, the company reached a peak valuation of $45.6 billion before suffering an 85% drop to $6.7 billion the following year amid a broader downturn affecting prominent fintech firms.

Despite these setbacks, Klarna demonstrated remarkable resilience. In 2024, the company reported revenues of $2.81 billion, marking a 24% increase compared to the previous year. More notably, Klarna achieved a net profit of $21 million in 2024—a substantial turnaround from the $244 million loss recorded in 2023.

In a bold move to consolidate its market position ahead of the IPO, Klarna secured an exclusive partnership with Walmart, effectively replacing its competitor Affirm Holdings. This collaboration aims to offer installment loan financing to Walmart’s vast customer base in the United States, enhancing the retail giant’s payment flexibility and potentially boosting sales. Following the announcement of this partnership, Affirm’s stock value dropped significantly by 11%, underscoring intense competitive dynamics within the BNPL market.

Klarna has engaged 15 banks for its upcoming IPO. Prominent financial institutions—including Goldman Sachs, JPMorgan, and Morgan Stanley—are the lead underwriters, supported by 11 financial institutions managing the offering. Klarna’s decision to list its shares on the New York Stock Exchange under the ” KLAR ” ticker comes amid market volatility and economic uncertainty.

The company confidentially submitted IPO paperwork to the U.S. Securities and Exchange Commission in November 2024, and the public filing occurred in March 2025.

The BNPL sector has experienced rapid growth, attracting significant attention from consumers and investors. Klarna’s IPO is poised to be a litmus test for the fintech industry’s ability to navigate public markets amid current economic headwinds. A successful listing could pave the way for other fintech companies to consider public offerings, signaling investor confidence in the sustainability of the BNPL business model.

While Klarna’s financial rebound and strategic partnerships are commendable, the company still faces considerable challenges. The BNPL industry is becoming increasingly crowded, with competitors such as Affirm, Afterpay (acquired by Block), and PayPal intensifying the race for market share. Additionally, regulatory scrutiny is mounting globally as authorities closely assess the potential implications of BNPL services on consumer debt and financial stability.

In June, Klarna agreed to sell its Checkout payments division for approximately $520 million and acquired assets from New Zealand-based Laybuy in August. The company has deepened its ties with major technology players, announcing in November that it would provide BNPL services to U.S. consumers using Google Pay—just one month after finalizing a similar partnership with Apple Inc.

Klarna also disclosed it is currently finalizing a partnership with a second banking institution in the U.S., enabling the rollout of its Fair Financing products. Additionally, negotiations with another payment network are underway, with plans to launch the Klarna card in selected markets. Klarna anticipates finalizing binding agreements with these partners by the first quarter and the second half of 2025.

The Swedish payments firm has further expanded its collaborations with mainstream payment processors, including Adyen NV, Xero, and Worldpay Inc. To further strengthen its market presence, Klarna entered a strategic partnership with JPMorgan Chase & Co.’s payment division, enabling approximately 900,000 merchant businesses to offer their customers Klarna’s instant credit solutions.

Conclusion

Klarna’s decision to move forward with its US IPO marks a significant milestone in the company’s evolution and highlights the growing influence of BNPL services in the financial sector. With plans to raise over $1 billion at a $15 billion valuation, Klarna is positioning itself as a key player in the increasingly competitive fintech landscape. The company’s financial turnaround—achieving profitability for the first time in 2024—demonstrates its resilience after facing substantial losses and a sharp valuation drop in previous years.

However, the IPO comes at a time of market uncertainty, and Klarna’s success will depend on investor confidence in the sustainability of the BNPL model. The outcome of this offering could serve as a benchmark for other fintech firms considering public listings. Moving forward, Klarna’s strategic partnerships, including its collaboration with Walmart and its ongoing expansion efforts, will be critical in maintaining its market position. Yet, with growing regulatory scrutiny and intensified competition, Klarna will need to continue demonstrating strong financial performance and adaptability to secure long-term growth and investor trust.

Frequently Asked Questions

Visa to Introduce Tokenization and Digital Wallet Features for Fleet Cards

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In its recent announcements, Visa has taken significant steps to improve and enhance its fleet card services by introducing tokenization and digital wallet features. Card issuers and other fintech companies can incorporate secure, tokenized card data into Apple Pay mobile wallets.

Visa tokenization and digital wallet integration will streamline payment processes and align with the growing digitalization trend in financial operations. The enhanced security measures inherent in tokenization further safeguard against potential fraud, offering businesses greater peace of mind in their financial dealings.

Key Takeaways

With tokenization, Visa will replace sensitive payment information with unique identifiers. This will significantly reduce the risk of data breaches and fraud in fleet transactions.
One of the most valuable features Visa has announced is that users can add fleet cards to mobile wallets like Apple Pay. It will offer convenience and secure payment methods, a much better option than physical cards, which are more prone to getting lost or stolen.
Features such as including fleet data tags during token provisioning and the ability to push digital credentials into mobile wallets streamline payment processes, enhancing the user experience for drivers and offering fleet managers better control over expenses.
Visa’s pilot program with Highnote demonstrated that these enhancements empower fleet drivers by modernizing payment processes, indicating a significant shift towards more efficient and secure fleet payment systems.

Visa Tokenization and Digital Wallet Integration: Enhanced Fleet Card Security

Visa has announced plans to integrate tokenization and digital wallet capabilities into its fleet cards. This new integration will enhance payment security and streamline operations for commercial fleet managers and drivers.

Tokenization is a data security process that replaces sensitive information, such as credit card numbers, with a unique identifier or “token.” This token holds no exploitable value, ensuring the original data remains secure even if intercepted. This technology is pivotal in safeguarding payment information during transactions.

Digital wallets, on the other hand, are electronic devices or software platforms that allow users to make transactions electronically. They store payment information securely and facilitate seamless transactions, reducing the need for physical cards. By integrating tokenization with digital wallets, payment processes become secure and efficient.

Visa’s integration of tokenization and digital wallet capabilities into its fleet cards is set to revolutionize fleet payments. This enhancement allows issuers and fintech companies to embed encrypted and tokenized card information into mobile wallets like Apple Pay. Consequently, commercial fleet drivers and managers can expect a more seamless and secure payment experience.

During token provisioning, fleet data tags can be added to ensure token payments and relevant fleet information are transmitted to the POS (point of sale). Additionally, the capability to integrate digital credentials with card-on-file merchants, Click to Pay systems, and mobile wallets can reduce time to market and enhance operational efficiency.

These advancements address existing challenges in fleet management by enabling instant issuance, improving the user experience for drivers, and providing better controls for fleet managers.

The combination of virtual cards and digital wallets also allows chief financial officers to manage corporate expenditures, particularly unexpected ones. A virtual corporate card can be assigned directly to an employee’s mobile phone through a digital wallet controlled by the company and used for contactless digital transactions.

In the published announcement, Gloria Colgan stated that this breakthrough addresses a significant problem currently faced by the fleet industry, offering numerous advantages for clients, such as immediate issuance, an enhanced driver experience, and stronger controls and features for fleet managers.

Visa piloted these enhancements from April to November with Highnote, a U.S.-based issuer-processor and program manager. The initiative showed that these technological advancements enhance fleet drivers’ capabilities by updating payment processes. John MacIlwaine, CEO and co-founder of Highnote commented that the fleet payments industry has been overdue for modernization, and these changes are swiftly taking effect.

MacIlwaine mentioned that they have empowered fleet drivers globally by putting control of payments into their hands.

Visa’s initiative supports its broader goal of spearheading innovation in payments. The company’s wide-ranging tokenization solutions equip banks, merchants, and the entire payments ecosystem with tools to enhance authorization rates and encourage innovation. Through the Visa Token Service, which replaces traditional card numbers with secure tokens, Visa delivers safer and more streamlined digital payment experiences worldwide.

About Visa

Visa Inc. stands as a leading force in the global payments technology landscape, driving the advancement of digital transactions worldwide. The company connects a diverse network of consumers, businesses, financial entities, and governmental bodies across over 200 countries, advocating for inclusive, secure, and efficient payment mechanisms. Visa’s commitment to democratizing digital payments is evident in its efforts to enhance economic and community growth by broadening access to its services. It oversees the operation of VisaNet, a highly sophisticated processing network that manages services such as authorization, clearing, and settlement. It offers a variety of products like credit, debit, and prepaid cards.

A robust commitment to innovation and technological integration is at the heart of Visa’s operational strategy. The company maintains multiple innovation hubs worldwide and has initiated programs such as the Fintech Fast-Track Program to bolster startups. This initiative partners with industry experts to facilitate the swift integration of emerging businesses into Visa’s extensive network. Additionally, Visa invests significantly in leading-edge technologies, including artificial intelligence, to enhance fraud detection and digital security, ensuring the reliability of its payment services. This fusion of comprehensive infrastructure and advanced technology supports Visa’s ability to process billions of transactions, reinforcing its significant global footprint.

Conclusion

Visa’s introduction of tokenization and digital wallet features for fleet cards marks a significant step toward modernizing fleet payment systems. These advancements address key challenges in fleet management by enhancing security, reducing fraud risks, and offering greater convenience through mobile wallets like Apple Pay.

The successful pilot program with Highnote demonstrates these innovations’ potential to improve efficiency for drivers and fleet managers. As Visa continues to invest in payment technology, its tokenization services will likely play a crucial role in shaping the future of secure and streamlined digital transactions in the fleet industry.

Mastercard Teams Up with Feedzai to Prevent AI-Driven Scams

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Artificial intelligence has transformed how financial crimes are carried out, making scam detection more sophisticated and complex. Fraudsters use AI to create deepfake voices, manipulate transaction patterns, and bypass traditional security measures. As financial institutions work to stay ahead, advanced fraud detection solutions are becoming essential. Companies are investing in AI-powered tools to identify suspicious activity in real time and protect consumers from emerging threats.

The Mastercard-Feedzai partnership has formed a company specializing in AI-driven risk management to strengthen fraud prevention efforts. This partnership will enhance security by leveraging machine learning to detect and stop fraudulent transactions before they cause harm. Combining Mastercard’s global network with Feedzai’s advanced analytics, the two companies are working to protect financial systems from increasingly complex scams.

Key Takeaways

As fraudsters increasingly exploit AI to develop sophisticated scams—ranging from deepfake voices to manipulated transaction patterns—traditional fraud prevention methods are no longer sufficient, creating an urgent need for real-time, AI-powered risk management.
Mastercard has joined forces with Feedzai, leveraging Mastercard’s vast global network alongside Feedzai’s cutting-edge, machine learning–driven analytics to detect and intercept fraudulent transactions as they occur.
The integration of Mastercard’s Consumer Fraud Risk solution with Feedzai’s platform has already demonstrated tangible results, such as a 12% reduction in authorized push payment scams in the UK, highlighting the effectiveness of AI-based fraud prevention.
This alliance underscores the importance of responsible AI and cross-industry collaboration in financial security. It ensures that advanced technology boosts efficiency and customer trust and adheres to high standards of ethical data usage and regulatory compliance.

Mastercard-Feedzai Partnership Join Forces to Strengthen AI-Powered Fraud Prevention

Today, digital transactions have become the backbone of global commerce, and fraudsters’ sophistication has also evolved in tandem with technological advancements. Integrating artificial intelligence (AI) into financial systems, while offering numerous benefits, has opened new avenues for fraudulent activities. Recognizing the pressing need to combat these AI-driven scams, Mastercard has partnered with Feedzai, a leader in AI-based financial crime prevention, to bolster defenses against such threats.

The collaboration between Mastercard and Feedzai is timely, considering the alarming statistics surrounding financial fraud. In fact, last year, fraudulent schemes resulted in losses exceeding $1 trillion; over half of all consumers reported encountering a scam at least weekly.

The financial sector has witnessed a seismic shift toward electronic transactions, with businesses and consumers increasingly relying on them. While enhancing convenience, this transition has also expanded the attack surface for cybercriminals. Traditional fraud detection mechanisms, often reactive and rule-based, are proving inadequate against modern fraudsters’ dynamic and adaptive strategies. The rise of AI has further complicated this scenario, as malicious actors leverage machine learning algorithms to craft sophisticated scams that can bypass conventional security measures.

In response to these escalating threats, Mastercard announced on February 18, 2025, a strategic collaboration with Feedzai to enhance fraud prevention capabilities globally. This partnership empowers financial institutions with advanced tools to identify and stop fraud in real time, safeguarding businesses and consumers from financial losses.

Mastercard’s Consumer Fraud Risk (CFR) solution, an AI-driven system designed to provide real-time risk assessments for transactions, is at the heart of this collaboration. By integrating Feedzai’s advanced fraud detection platform, which operates in more than 90 countries, Mastercard seeks to accelerate the deployment of CFR across key markets worldwide. This integration enables sending and receiving financial institutions to access intelligence that helps recognize and prevent fraudulent activities during account-to-account payments.

The effectiveness of CFR was demonstrated in the United Kingdom, where its implementation in 2023 led to a significant reduction in authorized push payment (APP) scams. According to data from the UK’s Payment Systems Regulator (PSR), the value of APP scams decreased by 12% following the CFR deployment. This success underscores the potential of AI-driven solutions in mitigating fraud and protecting consumers.

Johan Gerber, Mastercard’s Head of Security Solutions and Executive Vice President, noted that scam fraud now touches over half of the global population, inflicting severe damage on consumers and generating losses that eclipse the GDP of many individual countries. He emphasized that by harnessing Feedzai’s global platform, they plan to roll out their groundbreaking scams solution across additional markets, enabling financial institutions to counter financial crime more swiftly and effectively than ever.

Top financial institutions already trust Feedzai’s AI-driven Financial Crime Prevention Platform. It safeguards over one billion consumers and secures upwards of $8 trillion in transactions annually.

Nuno Sebastiao, CEO of Feedzai, expressed enthusiasm about expanding the partnership with Mastercard to tackle the rising tide of financial crime. He highlighted that the rapid increase in scams makes it imperative for financial institutions to embrace real-time, AI-powered solutions. This collaboration marks the first time Mastercard’s proven Consumer Fraud Risk score will be introduced to new markets, enhancing security and resilience against financial threats on a global scale.

Feedzai’s AI-driven Financial Crime Prevention Platform is central to this collaboration. It scrutinizes every digital transaction, from card purchases to instant transfers, evaluating various real-time risk indicators. By integrating network data, device intelligence, and behavioral biometrics, the platform rapidly detects suspicious activities, allowing financial institutions to act swiftly before economic losses occur. This proactive strategy is essential for combating AI-powered fraud, where rapid and precise response is critical.

The integration of AI in fraud prevention offers several advantages. AI systems can process vast amounts of data at unprecedented speeds, identifying patterns and anomalies that may elude human analysts. This capability is particularly vital in real-time transactions, where delays in detection can result in substantial financial losses. Moreover, AI-driven solutions can adapt to emerging threats, continuously learning from new data to enhance their predictive accuracy.

However, deploying AI in fraud prevention is not without challenges. Ensuring the ethical use of AI, maintaining data privacy, and addressing potential biases in AI algorithms are critical considerations. Both Mastercard and Feedzai have emphasized their commitment to responsible AI practices, ensuring that their solutions protect against fraud and uphold the highest standards of integrity and fairness.

Julie Conroy, CIO at Datos Insights, emphasized that global fraud and scams have spurred an urgent demand for next-generation technology solutions. She urged financial institutions to integrate third-party data into their fraud defense strategies to counteract these escalating threats. By leveraging Mastercard’s well-established Consumer Fraud Risk score alongside Feedzai’s specialized risk scoring technology, this partnership offers a compelling fusion of Mastercard’s expansive data expertise and Feedzai’s targeted, purpose-built capabilities.

The partnership also highlights the importance of collaboration in combating financial crime. By leveraging Feedzai’s expertise in AI-based fraud detection and Mastercard’s extensive network and resources, the two companies aim to create a more secure financial ecosystem. This collaborative approach extends beyond technology, encompassing shared intelligence, best practices, and coordinated responses to emerging threats.

Looking ahead, the integration of AI in financial systems is expected to deepen, offering both opportunities and challenges. While AI can enhance efficiency, customer experience, and security, it also necessitates robust governance frameworks to manage the risks associated with its use. Financial institutions must balance innovation with caution, ensuring that technological advancements do not outpace their capacity to manage potential vulnerabilities.

This initiative is a key component of Mastercard’s comprehensive security blueprint, which aims to phase out traditional passwords in favor of biometric authentication by 2030. Recent enhancements to its Identity Check program complement this initiative. These advancements signal a broader trend among financial institutions toward adopting behavioral biometrics as they work to curb the rising tide of digital payment fraud.

About Mastercard

Mastercard is a global technology company in the payments industry, dedicated to powering a connected and inclusive digital economy. At its core, Mastercard facilitates secure, seamless transactions between consumers, merchants, and financial institutions worldwide. By licensing its renowned brands to banks and partnering with fintech innovators, it processes millions of credit, debit, and prepaid transactions daily across more than 200 countries and in over 160 currencies.

The company’s robust network and state-of-the-art digital solutions streamline everyday purchases and set the standard for secure, reliable, and efficient payment processing in a rapidly evolving financial landscape.

Driven by a commitment to innovation and social impact, Mastercard continuously invests in cutting-edge technologies such as biometric authentication, tokenization, and open banking solutions to stay ahead of emerging threats and market demands. Its forward-thinking initiatives aim to eliminate payment friction while enhancing security and reducing fraud, paving the way for a cashless future. Beyond its technological prowess, Mastercard is equally focused on fostering financial inclusion and community empowerment through diverse corporate programs and partnerships that promote global economic growth and sustainability.

About Feedzai

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Feedzai is a leading global fintech company specializing in real-time financial crime prevention through advanced artificial intelligence and machine learning technologies. Founded in 2011 and headquartered in Coimbra, Portugal—with significant operations in the US and other key markets—the company has rapidly emerged as a trusted partner for banks, payment service providers, and retailers worldwide. Feedzai’s flagship RiskOps platform harnesses big data and predictive analytics to detect, prevent, and manage fraud across various financial transactions, enabling clients to safeguard trillions in payment while reducing operational risks and compliance costs.

Committed to constant innovation and excellence, Feedzai continuously evolves its suite of solutions to meet the complex challenges of a digital economy. Its technology enhances the accuracy and speed of fraud detection and adapts dynamically to emerging threats, ensuring a secure and seamless customer experience. By integrating state-of-the-art biometrics, real-time transaction monitoring, and automated regulatory compliance tools, Feedzai is at the forefront of the battle against financial crime, empowering institutions to protect millions of consumers and maintain trust in an increasingly interconnected financial ecosystem.

Conclusion

The partnership between Mastercard and Feedzai marks a significant step in the fight against AI-driven fraud. As digital transactions continue to grow, so do cybercriminals’ tactics, making real-time fraud detection more important than ever. By combining Mastercard’s global network with Feedzai’s AI-powered analytics, financial institutions gain more potent tools to identify and stop fraudulent activities before they cause harm. The early success of their collaboration, particularly in reducing authorized push payment scams in the UK, highlights the potential of AI in safeguarding financial transactions.

Looking ahead, this partnership reflects a broader trend in the financial industry—leveraging AI to enhance security while maintaining ethical standards in fraud prevention. As scams become more sophisticated, financial institutions must continuously adapt, integrating advanced technology to stay ahead of emerging threats. Mastercard and Feedzai’s collaboration sets a precedent for how AI can be used responsibly to protect businesses and consumers. With ongoing innovation and a focus on real-time prevention, their efforts will play a key role in shaping the future of financial security.

i2c to Facilitate Mastercard One Credential Adoption for Clients

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A US-based banking and payments solution company, i2c, has partnered strategically with Mastercard to become one of the first issuing processing partners for the newly introduced Mastercard One Credential.

This partnership is a big step that will enable issuers to offer their customers a streamlined choice among payment options such as credit, debit, prepaid, and BNPL (buy now, pay later), all under a single credential. This deal involved collaboration with multiple customers and partners, including Episode Six, Bendigo and Adelaide Bank group, i2c, Galileo Financial Technologies, Marqeta, Lithic, and Wio Bank.

This announcement arrives just one week after Mastercard launched One Credential, which integrates various payment methods into a single digital connection.

Key Takeaways

i2c’s partnership with Mastercard allows it to become one of the first issuing processing partners for One Credential, which integrates various payment methods like credit, debit, prepaid, and BNPL into a single digital connection. Offering users a single credential for multiple payment options will simplify and enhance the payment process.
The introduction of One Credential by Mastercard, supported by i2c, aims to provide a more streamlined and personalized payment experience. It enables consumers to manage multiple payment methods through a single platform, catering to the demand for greater flexibility and control in financial transactions.
The development and implementation of One Credential involved collaboration with various partners and customers, including well-known fintech companies and financial institutions like Episode Six, Bendigo and Adelaide Bank group, Galileo Financial Technologies, Marqeta, Lithic, and Wio Bank. This collaborative approach ensures a robust integration into existing financial ecosystems and a smooth rollout of the new technology.
Launched just a week after Mastercard unveiled One Credential, this partnership is timely and aligns well with the evolving needs of consumers, particularly younger, digitally-savvy generations who prefer managing financial transactions digitally and all in one place. This move by i2c and Mastercard caters to these preferences, promising to enhance user engagement and satisfaction.

Mastercard Launches One Credential to Simplify and Personalize Digital Payments

Mastercard has introduced an innovative solution known as One Credential, aiming to streamline and personalize consumers’ payment experience. This digital-first approach allows users to consolidate multiple payment methods—such as debit, credit, prepaid, and installments—into a single, unified platform. By doing so, Mastercard addresses the growing demand for flexibility and control in financial transactions, particularly among younger, digitally native consumers.

One Credential empowers users to customize their payment preferences based on transaction type and amount. For instance, a user can set daily expenses under $100 to be debited directly from their checking account, charges over $100 to be applied to a credit account, and select larger purchases to be paid via installment plans. These preferences can be configured through an online portal or mobile application, providing a comprehensive overview of spending habits and enhancing financial management.

Mastercard has collaborated with several financial institutions and fintech companies to bring this solution to market. Notable partners include Episode Six, Bendigo and Adelaide Bank group, i2c, Galileo Financial Technologies, Marqeta, Lithic, and Wio Bank. These collaborations are pivotal in integrating One Credential into existing financial ecosystems and ensuring a seamless user experience.

i2c Inc., a leading payments and banking technology provider, plays a significant role in facilitating the adoption of Mastercard’s One Credential among its clients. By leveraging i2c’s advanced payment processing infrastructure, financial institutions can efficiently implement One Credential, offering their customers enhanced payment flexibility and control. This partnership underscores i2c’s commitment to delivering innovative payment solutions that cater to consumers’ evolving needs.

Amir Wain, CEO and Founder of i2c Inc., noted that modern consumers demand instant control over their payment methods and readily adopt new solutions when offered more flexibility. He views the Mastercard One Credential as a pivotal development in the shift toward consumer-centric payment options. Wain emphasized that issuers who proactively adapt to these changes will set the pace in the industry. He argued that the key benefit for issuers is to upgrade their payment systems now, ahead of these innovations becoming widespread standards. By delivering a tailored and frictionless payment experience, issuers strengthen customer loyalty, increase transaction volumes, and maintain a competitive edge in a market that highly values choice and convenience.

The launch of One Credential is especially relevant today as it corresponds with the preferences of Generation Z consumers. Known for their digital fluency, Generation Z shows a strong preference for digital payment solutions. Mastercard’s recent studies reveal that nearly half of this generation favors new and innovative payment methods, with 65% wanting to manage all their financial transactions from a single online platform. Although cautious with their finances, Generation Z members are more inclined to spend rather than save, paying close attention to their purchases’ value and personal relevance. Personalization in payment options is notably significant to them, being 1.31 times more crucial than other generations globally.

Additionally, One Credential tackles the obstacles Generation Z encounters in establishing credit. Despite their strong inclination towards digital wallets and aspirations to build credit, they maintain the lowest average credit score among all generations in the US. This is primarily due to their thinner credit histories and hesitancy towards traditional borrowing methods.

Only half of Generation Z consumers use credit, marking the lowest utilization rate among all age groups. Using credit responsibly is essential for developing a positive credit history and achieving key life goals like renting an apartment, purchasing a vehicle, or securing a mortgage. Almost 70% of GenZs are actively working to improve their credit scores, yet over half are unsure how to begin this process. There is a clear need for innovative digital tools that guide Generation Z toward creditworthiness and financial well-being while providing them with options and autonomy in their financial decisions.

Bunita Sawhney, Chief Consumer Product Officer at Mastercard, expressed enthusiasm about the ongoing collaboration with i2c, highlighting their long-standing partnership on introducing payment innovations. She is excited about continuing this collaboration as i2c becomes one of the initial issuer processing partners for the Mastercard One Credential. Sawhney emphasized that Mastercard and i2c are committed to their joint mission of offering greater payment flexibility to both consumers and issuers.

On February 19, Mastercard announced the launch of its new service, One Credential, which is now operational in the United Arab Emirates (UAE) in collaboration with the digital banking platform Wio Bank and various key clients and partners dedicated to introducing this digital credential to users.

One Credential allows users to select their preferred payment method—whether debit, credit, installments, or prepaid—by setting their preferences online or through a mobile application, depending on the type and timing of transactions.

Mastercard is also preparing to offer small businesses a broader range of payment options through One Credential.

One Credential provides a tool for issuing banks that enhances customer understanding and transparency regarding their financial activities and helps them plan their financial future effectively. This tool is designed to adapt and grow with customers throughout different stages of their lives.

With One Credential, i2c enables financial institutions to offer a more personalized and flexible payment experience, catering to the diverse needs of modern consumers. This partnership benefits individual users and positions financial institutions to stay competitive in a rapidly changing market.

About i2c Inc.

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i2c Inc., founded in 2001 and headquartered in Silicon Valley, is a global fintech leader known for delivering highly flexible and secure banking and payment solutions. The company’s proprietary “building block” technology provides financial institutions and fintech startups. It brands the agility to create, launch, and manage customized credit, debit, prepaid, and lending products seamlessly through a single unified platform.

With a significant international presence, i2c serves millions of users worldwide, offering comprehensive card issuing and processing capabilities and Banking as a Service (BaaS) solutions. Under the leadership of founder and CEO Amir Wain, i2c continues to excel in scalability, adaptability, and innovation, empowering clients to adjust rapidly to evolving market demands and confidently expand their financial offerings.

Conclusion

The partnership between i2c and Mastercard marks a significant step in advancing digital payments by introducing One Credential. By integrating multiple payment methods into a single digital credential, this collaboration provides consumers with greater flexibility, control, and convenience. Financial institutions partnering with i2c can leverage its advanced processing capabilities to adopt this new solution efficiently, meeting the evolving expectations of digitally driven customers.

As One Credential gains traction, it is expected to reshape how consumers manage payments, particularly among younger generations seeking personalized and seamless financial experiences. With i2c playing a key role in its implementation, financial institutions have an opportunity to enhance customer engagement, increase transaction volumes, and stay competitive in a rapidly evolving payments market.

Shift4 Expands into Luxury Payments with Planned Acquisition of Global Blue

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Payments company Shift4 acquires Global Blue, a tax refund company for tourists headquartered in Nyon, Switzerland, in a deal valued at approximately $2.5 billion. After this deal, Pennsylvania-based Shift4 gains access to Global Blue’s tax refund and currency conversion technology, which enables luxury and premium retailers worldwide to offer tax-free shopping experiences.

The deal also strengthened Shift4’s unified commerce platform. It significantly expanded its presence by adding over 400,000 retail and hospitality locations already utilizing Global Blue’s solutions for cross-border luxury transactions.

Not only this, Global Blue’s merchant relationships, including high-end brands like Prada and LVMH, present a cross-selling opportunity exceeding $500 billion in payments volume, while also providing a strategic geographic footprint to support Shift4’s ongoing expansion in entertainment, restaurant, sports and hotel sectors internationally.

Key Takeaways

Shift4 Payments has acquired Global Blue for approximately $2.5 billion, significantly enhancing its presence in the global luxury retail payments sector and marking its strategic entry into international markets.
The acquisition adds Global Blue’s extensive network of over 400,000 retail and hospitality locations, allowing Shift4 to diversify geographically, particularly into Europe, Asia, and South America.
Shift4 will leverage Global Blue’s specialized capabilities in tax-free shopping and currency conversion, creating more comprehensive payment solutions tailored for premium retailers and international customers.
Major Global Blue shareholders, including Ant International and Tencent, plan to maintain their investment, potentially enabling new integrations with payment platforms like Alipay+ and Weixin Pay, thus connecting Shift4 to an extensive global user base of over 1.6 billion accounts.

Shift4 Acquires Global Blue in $2.5 Billion Deal, Expanding into Luxury Retail Payments.

Shift4 Payments has announced its intention to acquire Global Blue, a leading specialty payments and technology provider serving luxury brands. This significant move, valued at approximately $2.5 billion, marks Shift4’s ambitious expansion into global luxury retail.

Shift4, a prominent player in integrated payments and commerce technology, has entered into a definitive agreement to purchase Global Blue for $7.50 per common share in cash. This price represents a 15% premium over Global Blue’s closing share price as of February 14, 2025. The transaction’s enterprise value is around $2.5 billion, encompassing equity and debt considerations. Once the transaction is finalized, Global Blue’s common and preferred shares will be delisted from all public stock exchanges. Holders of Global Blue warrants can exercise these warrants before their expiration in August 2025.

Founded in 1999, Shift4 has established itself as a leader in integrated payment processing solutions, catering to over 200,000 businesses across various sectors, including hospitality, retail, and restaurants. The company’s platform offers a comprehensive suite of services, from mobile payment solutions to point-of-sale systems.

With a history spanning more than four decades, Global Blue specializes in tax-free shopping, dynamic currency conversion, and payment solutions tailored for luxury retailers. The company operates in over 52 countries and serves over 400,000 premium retail and hospitality locations, connecting international shoppers with renowned brands.

This acquisition is poised to boost Shift4’s position in the global payments landscape significantly:

Enhanced Global Presence: By integrating Global Blue’s extensive network, Shift4 will expand its reach into key international markets, particularly in Europe, Asia, and South America. This aligns with Shift4’s strategy to diversify beyond its primarily US-based operations.
Diversified Service Offerings: Incorporating Global Blue’s expertise in tax-refund and currency conversion services will enable Shift4 to offer more comprehensive solutions to luxury retailers, enhancing the shopping experience for international customers.
Strategic Partnerships: Notably, major shareholders of Global Blue, such as Ant International and Tencent, plan to remain invested in the combined entity. This opens avenues for collaborations, including the potential integration of payment services like Alipay+ and Weixin Pay into Shift4’s ecosystem, thereby connecting global merchants with over 1.6 billion user accounts.

Taylor Lauber, President of Shift4, described the acquisition as continuing its bold approach to delivering transformative solutions for its customers, creating substantial cross-selling potential. He emphasized that this acquisition aligns perfectly with Shift4’s strategic goals, offering a significant opportunity to drive higher transaction volumes, unlock additional revenue streams, and expand their capabilities into new markets. By incorporating Global Blue into its unified payments platform, Shift4 is a global leader in unified commerce payment solutions.

Shift4 will integrate Global Blue’s merchant solutions into its global payments platform, significantly improving merchants’ overall experience. Introducing Global Blue’s tax refund and currency conversion services strengthens Shift4’s reputation as a trusted and forward-thinking partner. Global Blue operates the largest and most robust two-sided network in its market, linking millions of high-value international shoppers directly with merchants. Global Blue actively engages international consumers through its proprietary app, generating strong network effects that enable further innovation in digital marketing, loyalty programs, and additional value-added services.

Shift4 intends to finance the acquisition through cash reserves and a $1.795 billion bridge loan facility. The transaction has received unanimous approval from the boards of both companies and is anticipated to close by the third quarter of 2025, pending regulatory approvals and customary closing conditions.

Global Blue CEO Jacques Stern stated that the partnership with Shift4 is a pivotal moment in Global Blue’s development, enhancing its comprehensive value offering to top-tier merchants globally. He expressed great enthusiasm about collaborating with Shift4 to maintain its history of innovation and improve experiences for everyone involved in the shopping ecosystem. Stern also expressed his deep appreciation to all Global Blue team members, acknowledging that their efforts have been crucial to the company’s success.

The boards of directors of Shift4 and Global Blue have unanimously approved the acquisition, which is anticipated to be finalized by the third quarter of 2025. This closure is contingent upon securing necessary regulatory approvals, satisfying other standard closing conditions, and achieving a minimum acceptance of at least 90% of Global Blue’s total issued and outstanding common and preferred shares. Additionally, certain shareholders of Global Blue have committed to tendering their shares by signing tender and support agreements. Under these agreements, the participating shareholders, who collectively own approximately 90% of the total issued and outstanding common and preferred shares of Global Blue, have agreed to tender their shares according to the stipulated terms and conditions.

Douglas Feagin, President of Ant International, highlighted that their strategic investment in Shift4 aligns closely with their mission to advance global commerce and empower SMEs through innovative payment, digitization, and financial solutions. Feagin praised Shift4’s rapid growth into a worldwide omnichannel payments leader and expressed enthusiasm for solidifying the partnership early in Shift4’s international expansion. He thanked Jared Isaacman, Taylor Lauber, and Thomas Farley for their strategic vision and noted his excitement about future collaborations to support businesses in a digitally connected ecosystem.

Tencent’s Chief Strategy Officer and Senior Executive Vice President James Mitchell emphasized his continued support for Global Blue under Shift4’s ownership. Mitchell commended Jared Isaacman and Taylor Lauber for positioning Shift4 as a leading integrated payments and commerce technology provider. He confirmed Tencent’s strategic investment in Shift4 and expressed enthusiasm for future global partnership opportunities.

Tom Farley, Chairman of Global Blue, spoke for the current board of directors—which includes representatives from Silver Lake, Partners Group, Certares, and Knighthead—and unanimously endorsed the transaction. They are confident that this deal will provide substantial, prompt, and guaranteed value to Global Blue’s shareholders. Plus, they are convinced that this agreement will serve the best interests of their employees, customers, and stakeholders, promoting sustained growth and innovation under the guidance of the new ownership.

Goldman Sachs & Co. LLC serves as Shift4’s sole financial advisor, while Loyens & Loeff NV and Latham & Watkins LLP provide legal guidance.

JPMorgan Securities LLC is Global Blue’s principal financial advisor. IFBC, Deutsche Bank Securities, PJT Partners, Oppenheimer & Co. Inc., and UBS provide additional financial advisory support. Niederer Kraft Frey Ltd and Simpson Thacher & Bartlett LLP provide legal counsel.

The announcement has elicited mixed reactions from the market. While some analysts view the acquisition as a strategic move to capture a larger share of the luxury payments market, others express caution regarding the integration challenges and the substantial financial outlay involved. Shift4’s stock experienced a slight decline following the news.

Looking ahead, the successful integration of Global Blue’s services into Shift4’s platform could position the company as a formidable player in the luxury payments sector. The combined entity’s ability to offer seamless, integrated payment solutions tailored to luxury retailers and international shoppers may set new standards in the industry.

The acquisition coincides with Jared Isaacman’s upcoming departure from Shift4, the company he founded at age 16, as he has reportedly been nominated by President Donald Trump to head NASA. Pending Senate confirmation, Taylor Lauber will succeed Isaacman as CEO.

This deal is part of Shift4’s series of strategic acquisitions over the past year. In August, the company acquired GiveX, expanding its product portfolio with gift card and loyalty solutions while broadening its customer base.

Additionally, in June, Shift4 purchased a majority interest in Vectron Systems, a European provider of point-of-sale technology for restaurants and hospitality businesses, and completed its previously announced acquisition of Revel Systems.

About Shift4

Shift4 Payments, Inc. provides comprehensive software and payment processing solutions to simplify commerce and optimize global payment acceptance. Its robust payments platform supports multiple payment methods, including credit, debit, contactless transactions, QR codes, mobile wallets, and alternative options like Google Pay, Apple Pay, WeChat Pay, and Alipay. Shift4’s innovative technology suite includes SkyTab POS and Mobile solutions for seamless ordering and payments, Lighthouse for business intelligence and customer engagement, Shift4Shop for streamlined e-commerce, and The Giving Block for cryptocurrency donations.

Founded in 1999 and headquartered in Center Valley, Pennsylvania, Shift4 supports businesses with essential merchant services from onboarding and risk management to training and ongoing customer support. The company collaborates closely with software partners, independent vendors, enterprises, and resellers, ensuring clients have reliable, compliant, and integrated payment experiences across all sales channels.

About Global Blue

Global Blue, headquartered in Nyon, Switzerland, is a leading provider of tax-free shopping solutions. It helps international travelers seamlessly reclaim VAT/GST refunds. With over 40 years of industry experience, the company connects retailers, hotels, and financial institutions to nearly 80 million global consumers in 52 countries.

Beyond its core tax-free services, Global Blue offers a comprehensive portfolio, including dynamic currency conversion, marketing solutions, advanced point-of-sale technologies, retail staff training, and insightful customer analytics. This diverse range of products and services positions Global Blue as a trusted partner, enhancing the shopping experience for travelers and driving growth for businesses across retail, payments, and post-purchase segments.

Conclusion

The acquisition of Global Blue marks a significant step in Shift4’s expansion into the luxury retail payments sector, strengthening its global presence and service offerings. By integrating tax-free shopping and currency conversion solutions, Shift4 gains access to an extensive network of high-end merchants and international shoppers, opening new revenue opportunities.

While integration challenges and financial commitments remain, the deal aligns with Shift4’s strategy to diversify its portfolio and extend its reach beyond the US market. If successfully executed, this acquisition could solidify Shift4’s position as a leading payments provider in the luxury and cross-border commerce space.

NCR Voyix Signs Processing Agreement with Worldpay to Improve Payment Solutions

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The NCR Voyix-Worldpay partnership has just been announced. NCR Voyix is one of the top global e-commerce solutions providers for restaurants and retailers, and Worldpay is one of the prominent providers of payment technologies.

NCR Voyix will integrate Worldpay’s advanced acquiring services into its cloud-based software platform, delivering a unified payment solution tailored to retailers and restaurants through this collaboration. This integrated offering simplifies payment acceptance and enhances operational efficiency for NCR Voyix’s customers.

Key Takeaways

NCR Voyix has partnered with Worldpay to offer retailers and restaurants a comprehensive cloud-based software solution integrated with Worldpay’s robust payment processing services.
The collaboration will streamline operations by providing businesses with one point of contact for point-of-sale and payment processing, significantly reducing complexity and vendor management challenges.
Utilizing Worldpay’s advanced acquiring services, NCR Voyix aims to deliver secure payment processing, protect customer data, and adhere to global security standards.
With its combined global reach—supporting transactions in 135 currencies across 146 countries—the partnership empowers businesses to scale flexibly, capture international markets effectively, and enhance their operational agility.

NCR Voyix-Worldpay Partnership to Streamline Payment Solutions for Retailers and Restaurants

NCR Voyix, a prominent global provider of e-commerce solutions, has recently entered into a strategic agreement with Worldpay, a leader in payments technology, to enhance payment solutions for retailers and restaurants. This collaboration aims to integrate Worldpay’s acquiring services within NCR Voyix’s platform, offering a comprehensive cloud-based software and payments solution.

The agreement between NCR Voyix and Worldpay is set to revolutionize the payment processing landscape for businesses in the retail and restaurant sectors. By combining NCR Voyix’s robust digital commerce platform with Worldpay’s extensive payment processing capabilities, the partnership seeks to deliver an integrated solution that simplifies payment acceptance and enhances operational efficiency.

Unified Payment Processing: The integration provides businesses with a streamlined payment experience by consolidating point-of-sale and payment processing into a single, simplified solution. This unification simplifies operations and reduces the complexity associated with managing multiple vendors.
Enhanced Security: Leveraging Worldpay’s industry-leading acquiring services, the integrated solution is designed to provide secure payment processing, safeguard sensitive customer information, and ensure compliance with industry standards.
Scalability and Flexibility: The solution’s cloud-based nature allows businesses to scale their operations as needed, adapting to market demands without significant infrastructure investments.
Global Reach: With Worldpay’s presence in over 146 countries and the ability to process transactions in 135 currencies, businesses can easily expand their reach and cater to a global customer base.

Darren Wilson, President of Retail and Payments at NCR Voyix, noted that the partnership with Worldpay combines Worldpay’s extensive global acquiring expertise with NCR Voyix’s innovative platform, significantly enhancing their payment offerings. By incorporating Worldpay’s advanced payment processing capabilities, NCR Voyix will be able to deliver more complete and integrated solutions to retail and restaurant customers. This collaboration positions NCR Voyix as the unified provider for all point-of-sale and payment processing requirements, deepening customer relationships.

Similarly, Matt Downs, Group President of Worldpay for Platforms, highlighted NCR Voyix as a reliable technology partner trusted by major retailers and restaurants worldwide. He emphasized that by combining Worldpay’s extensive global presence and specialized solutions for vertical software providers with NCR Voyix’s platform, the collaboration will deliver customers outstanding omnichannel payment processing capabilities. This partnership aims to leverage Worldpay’s robust e-commerce expertise, enhancing the overall payment experience for NCR Voyix’s client base.

This partnership introduces significant opportunities for NCR Voyix to generate revenue beyond traditional software licensing fees. Payment processing fees typically amount to around 2-3% of transaction volumes, potentially offering substantial recurring income if adopted broadly among NCR Voyix’s customers. In comparison, payment processing contributes roughly 30-40% of total revenue for similar integrated point-of-sale providers, such as Toast and Square.

Strategically, the agreement comes at an ideal time, as NCR Voyix seeks to solidify its standalone market identity following its separation from NCR. This integration directly addresses competitive pressures from companies like Toast, Square, and Shift4, which have successfully bundled payment processing with software solutions.

From a business perspective, integrating payments strengthens customer retention by creating higher switching costs and generating stable, recurring cash flow, despite payment processing’s relatively lower profit margins (15-20%) than software licensing margins (70-80%). Additionally, serving as a single provider simplifies merchant vendor management and grants NCR Voyix increased access to valuable customer transaction data.

This partnership signifies a move towards more streamlined and efficient payment processes for retailers and restaurants. The integrated solution is poised to reduce operational complexities, allowing businesses to focus more on customer engagement and service delivery. Additionally, enhanced security measures and global transaction capabilities can increase customer trust and become a comprehensive digital commerce platform with diversified revenue streams rather than solely a POS software vendor. This strategic direction typically results in higher valuation multiples in the market.

About NCR Voyix

NCR Voyix Corporation, formerly NCR Corporation, is a global leader in e-commerce solutions, catering to the retail, restaurant, and digital banking industries. Founded in 1884 and headquartered in Atlanta, Georgia, NCR Voyix has evolved over 140 years from pioneering mechanical cash registers to offering comprehensive enterprise technology solutions. Their portfolio encompasses digital-first software and services, including POS systems, automated teller machines (ATMs), self-checkout (SCO) terminals, and payment processing platforms. Serving clients in approximately 35 countries, NCR Voyix supports businesses of all sizes, from small and medium-sized enterprises to large multinational corporations.

The name “NCR Voyix” reflects the company’s rich heritage and forward-looking vision. “NCR’ signifies their longstanding expertise in enterprise technology. At the same time, “Voyix,” derived from “voyage,” symbolizes their commitment to guiding customers through the evolving landscape of digital commerce. The inclusion of the letter “x” represents the connection between digital and physical realms, highlighting NCR Voyix’s role in bridging traditional and modern commerce experiences. With approximately 15,500 employees, the company emphasizes customer-centricity, innovation, and integrity. By leveraging advanced technologies like artificial intelligence and data analytics, NCR Voyix aims to empower businesses to enhance operational efficiency and deliver exceptional customer experiences in today’s competitive market.

About Worldpay

Worldpay is a leading global fintech company specializing in innovative payment processing solutions that empower businesses of every size. With robust online, in-store, and mobile capabilities, Worldpay facilitates seamless, secure, and efficient payment acceptance in 146 countries and 135 currencies, enabling businesses to thrive in an increasingly connected, omni-channel marketplace.

Headquartered in Cincinnati, Ohio, and maintaining a strong international presence with key offices in London, UK, Worldpay is strategically positioned to serve a diverse, global customer base. Backed by GTCR, a prominent private equity firm, Worldpay continues to advance its technology-driven solutions, emphasizing security, reliability, and customer-centric innovation to help its clients.

Conclusion

The partnership between NCR Voyix and Worldpay represents a significant step in streamlining payment processing for retailers and restaurants. By integrating Worldpay’s acquiring services into its cloud-based platform, NCR Voyix aims to simplify transactions, enhance security, and improve business operational efficiency. This collaboration also strengthens NCR Voyix’s market position by expanding its revenue streams and increasing customer retention through a unified payment and software solution.

As digital commerce evolves, businesses require seamless and scalable payment solutions. With Worldpay’s global reach and NCR Voyix’s expertise in enterprise technology, this partnership provides merchants with a more efficient, secure, and flexible way to manage payments. Moving forward, the combined strengths of both companies are expected to drive innovation in the industry while delivering tangible benefits to customers.

J.P. Morgan Partners with Klarna to Introduce BNPL for Businesses

After the announcement of the Klarna-JP Morgan partnership, Klarna just got a significant pre-IPO bump. Later this year, J.P. Morgan Payments will integrate Klarna as a payment option on its platform, which almost one million users can use. The agreement will introduce Klarna’s payment options, such as interest-free Buy Now, Pay Later (BNPL) and flexible financing alternatives.

Klarna will also become a J.P. Morgan Payments Partner Network with this deal.

Key Takeaways

This integration of J.P. Morgan Payments with Klarna’s BNPL arm will offer 900,000 users a flexible payment plan, including interest-free options. Adding to its payment choice to J.P. Morgan’s business clients will significantly improve customer satisfaction and sales outcomes.
With J.P. Morgan Payments Partner Network partnership, Klarna gains a strategic advantage and broader exposure in the financial services market. This partnership can boost Klarna’s credibility and visibility, especially as it approaches a potential initial public offering (IPO).
The availability of BNPL options has increased conversion rates and average order values for retailers. Merchants using J.P. Morgan’s services can expect enhanced customer purchase experiences by offering more flexible payment terms, leading to higher sales volumes.
The collaboration between a traditional financial giant and a fintech innovator like Klarna indicates a significant shift towards adopting new financial technologies within mainstream banking. This partnership addresses changing consumer preferences for payment flexibility and sets a precedent for future collaborations in the financial industry, promoting innovation and competitive differentiation.

Klarna-JP Morgan Partnership to Bring BNPL to Business Clients

In a strategic move, just before the IPO, Klarna, a leading global buy-now-pay-later (BNPL) provider, has partnered with J.P. Morgan Chase & Co. to offer BNPL options to the bank’s business clients. This collaboration aims to integrate Klarna’s flexible payment solutions into J.P. Morgan’s extensive payments infrastructure, providing merchants with innovative financing options to enhance customer experience and drive sales. Almost 900,000 businesses using J.P. Morgan Payments will now have the opportunity to offer Klarna’s financing solutions to their customers.

Buy-now-pay-later (BNPL) services have revolutionized consumer financing by allowing shoppers to split purchases into manageable installments, often interest-free. This model has gained traction globally, appealing to consumers seeking flexibility and merchants aiming to boost conversion rates and average order values. According to a report, retailers offering BNPL options, such as Affirm, have seen conversion rates grow by 20% on average, increasing average order values by 87%.

Established in 2005, Klarna has emerged as a dominant player in the BNPL sector, operating in 26 countries and partnering with over 575,000 merchants. The company’s services process approximately 2.5 million transactions daily, reflecting its widespread adoption and consumer trust. Klarna’s recent financial reports indicate a revenue of about $1.2 billion in the first half of 2024, highlighting its robust growth trajectory.

J.P. Morgan Chase, a titan in the banking industry, processes over $2 trillion in payment transactions annually through its payments division. By integrating Klarna’s BNPL solutions, J.P. Morgan aims to enhance its service offerings to business clients, enabling them to provide flexible payment options to their customers. This partnership signifies J.P. Morgan’s commitment to embracing innovative financial technologies to meet evolving consumer demands.

For businesses utilizing J.P. Morgan’s payment processing services, the integration of Klarna’s BNPL options presents several advantages:

Enhanced Customer Experience: Offering BNPL options can attract a broader customer base, including those who prefer or require flexible payment plans.
Increased Sales and Conversion Rates: BNPL services have been associated with higher conversion rates and increased average order values, as customers are more likely to complete purchases when afforded payment flexibility.
Immediate Payment to Merchants: Despite customers paying in installments, merchants receive full payment upfront from the BNPL provider, improving cash flow and reducing financial risk.

Klarna is set to join the J.P. Morgan Payments Partner Network. This collaboration leverages J.P. Morgan Payments’ comprehensive array of payment solutions and third-party affiliations, assisting clients in developing, executing, enhancing, and refining their payment strategies to align with specific business requirements.

David Sykes, Klarna’s Chief Commercial Officer, mentioned that partnering with J.P. Morgan Payments accelerates Klarna’s goal to expand the availability of its payment solutions to a broader array of businesses, propelling its vision to make Klarna’s services ubiquitous for all types of purchases.

Sebastian Siemiatkowski, CEO of Klarna, observed that in recent years, Klarna has evolved into a third-party network akin to American Express and PayPal, emphasizing its natural progression as a bank amidst growing competition in retail banking services.

He also pointed out that Klarna is pursuing an American banking license as part of its US expansion strategy to enhance its control over customer experiences and enrich its service offerings.

Previously, J.P. Morgan’s credit card division had barred using services like Klarna and Affirm to make payments. The bank explained this by noting that it typically does not allow payments for one credit product with another.

In an interview, Max Neukirchen, Co-Head of Global Payments at J.P. Morgan, stated that Klarna is the initial partner. Still, they recognize that clients often seek multiple options and aim to accommodate those needs.

Last month, Klarna also broadened its global partnership with Stripe, the payment platform. This extension enables businesses using Stripe in 25 countries to adopt Klarna’s payment methods quickly.

The BNPL market has rapidly expanded, with numerous providers entering the space. Companies like Affirm, Afterpay, and PayPal have established themselves as significant players, each offering unique features to cater to diverse consumer needs. For instance, Affirm provides short-term and long-term financing options, accommodating various purchase amounts and repayment preferences.

On the other hand, Klarna’s anticipated US IPO in 2025 will be a significant development. Following its IPO registration with the US Securities and Exchange Commission in November, the company plans to announce its listing details as early as April 2025. As of now, Klarna has not finalized a listing location within the US.

Additionally, Klarna has been focusing on cost reduction and downsizing its balance sheet in preparation for the IPO. The company believes that leveraging artificial intelligence (AI) will enable it to reduce its workforce by nearly half. Klarna is also actively managing its assets, having recently divested most of its UK loan portfolio to the US hedge fund Elliott to liberate capital for further lending expansion.

About J.P. Morgan

J.P. Morgan Chase & Co. is a global financial services company with operations across consumer banking, commercial and investment banking, and asset management. Through branches, ATMs, and digital platforms, it provides deposit accounts, investment and lending products, mortgages, credit cards, auto loans, and payment services to individuals and small businesses. The company also offers investment banking services such as corporate advisory, capital-raising, loan syndication, risk management, and securities services, including custody and trading.

In addition to serving individuals and businesses, J.P. Morgan supports small and mid-sized companies, local governments, nonprofits, and commercial real estate clients with lending, payments, and asset management. It provides institutional and retail investors with multi-asset investment management, retirement services, and estate planning. Founded in 1799, J.P. Morgan Chase is headquartered in New York City.

About Klarna

Founded 2005 in Stockholm, Sweden, Klarna was created by Niklas Adalberth, Sebastian Siemiatkowski, and Victor Jacobsson. What started as a small startup quickly expanded into a global fintech leader. The company initially gained traction by offering a secure payment solution that let customers receive products before making a payment, reducing risk for retailers and building consumer trust. This model fueled Klarna’s growth across Europe and into the US by 2015.

By 2025, Klarna will operate in over 45 countries, serving over 150 million users. It provides various payment options, including direct payments, pay-after-delivery, and installment plans, alongside a shopping app and merchant services for over 500,000 partners. While its valuation has declined since its 2021 peak, Klarna remains a major player in fintech, particularly among younger consumers. The company faces regulatory challenges and competition but focuses on innovation, including AI-driven personalization and sustainability initiatives.

Conclusion

The partnership between J.P. Morgan and Klarna integrates traditional banking with fintech innovation, providing nearly one million businesses access to Klarna’s BNPL services through J.P. Morgan Payments. This enhances customer experiences and sales by meeting the growing demand for alternative payment options.

As Klarna approaches its anticipated U.S. IPO, this strategic partnership enhances its market position and credibility. J.P. Morgan’s adoption of BNPL services reflects a shift in banking toward flexible financing options. The success of this integration could set a precedent for future collaborations between banks and fintech firms.

Block Introduces Afterpay for Cash App Debit Card Users

Block has introduced Afterpay, its buy now, pay later (BNPL) service, to the Cash App Card. With this partnership, Block aims to attract Gen Z users who prefer alternatives to traditional credit cards. This move is a part of the company’s strategic plan to connect its three business units under a “neighborhood network.”

With BNPL integrations, Cash App Card users can split (eligible purchases over $25 made within the past seven days) into two or four interest-free payments every two weeks. Users can manage their payments directly within the Cash App. This integration is the next phase of Afterpay’s development following Block’s $29 billion acquisition of the Australian BNPL company in January 2022.

Key Takeaways

Block Inc. has integrated Afterpay into the Cash App debit card. Now, users can split eligible purchases over $25 into two or four interest-free biweekly payments. This move enhances financial flexibility and aligns with consumer demand for alternative credit options.
The integration is focused on attracting younger consumers, particularly Gen Z, who prefer BNPL services over traditional credit cards. Research shows that over one-third of Gen Z actively use credit cards, making this move a strategic effort to capture a growing market segment.
Afterpay has already driven significant spending increases, with BNPL originations totaling nearly $150 million during testing. Merchants also benefit, as BNPL services have generated 460 million customer leads, potentially boosting sales and customer loyalty.
The rollout began in February 2025 across 20 states and the District of Columbia, with plans for further expansion based on consumer adoption and feedback. Block wants to refine the service and enhance user experience as part of its broader financial ecosystem strategy.

Block Expands Afterpay for Cash App Card, Targeting Gen Z and Digital Payment Growth

In a strategic move to enhance consumer payment options, Block Inc., formerly known as Square, has integrated its BNPL service, Afterpay, into the Cash App debit card. This integration aims to offer Cash App users greater flexibility in managing their finances, aligning with the evolving landscape of digital payments.

Founded in 2009 by Jack Dorsey and Jim McKelvey, Block Inc. has established itself as a prominent player in the financial technology sector. The company’s portfolio includes Square, a point-of-sale system for merchants, and Cash App, a consumer-focused digital wallet introduced in 2013. Cash App enables users to send, receive, and store money, access a debit card, invest in stocks and bitcoin, and file taxes. As of 2024, Cash App reported 57 million users and $283 billion in annual inflows.

In January 2022, Block completed the acquisition of Afterpay, an Australian BNPL provider, for $29 billion. This move was part of Block’s strategy to expand its consumer financial services and cater to the growing demand for alternative credit options. Afterpay allows consumers to split purchases into interest-free installments, offering a flexible alternative to traditional credit cards.

Integrating Afterpay into the Cash App debit card significantly advances Block’s mission to provide versatile financial solutions. This feature enables Cash App cardholders to split eligible purchases over $25 into two or four interest-free biweekly payments. Users can manage these installment plans directly within the Cash App interface, simplifying the process of tracking and controlling costs. By the close of 2024, Cash App Borrow, which offers small, short-term loans to qualifying users within the Cash App, had amassed 5 million monthly active users.

During a recent call with equity analysts, Amrita Ahuja, Block’s Chief Operating Officer and Chief Financial Officer, highlighted the significant potential of the Cash App card, which boasts 25 million active users as of December, as a powerful platform for launching new products. Ahuja noted that during the pilot phase of integrating Afterpay into the Cash App card, Block recorded nearly $150 million in originations. After approximately a year of methodical testing, the rollout of this feature began this week.

She emphasized that the integration of Afterpay provides Cash App users with an additional tool for managing their finances and promotes increased spending through the Cash App card.

The rollout of Afterpay on Cash App cards began in February 2025. Initially, the service became available to eligible cardholders in 20 states and the District of Columbia, including Ohio, Florida, Indiana, Arizona, and Texas. Block has indicated plans to expand this feature to additional regions as they “test and learn” from the initial implementation.

The integration is mainly aimed at younger consumers, notably Generation Z, who have shown an aversion to traditional credit cards. Research indicates that only 35% of Gen Z consumers actively use credit cards, with many expressing a preference for alternative payment methods like BNPL services.

Additionally, Amrita Ahuja noted that the Cash App Card has achieved considerable scale, particularly with Millennials and Generation Z. According to Block’s estimates, 21% of all 18-to-21-year-olds in the United States used the Cash App Card in 2024. By offering Afterpay through Cash App, Block aims to meet the spending habits of this demographic, potentially expanding both usage and engagement.

The addition of Afterpay is expected to drive increased spending through the Cash App card. Afterpay logged nearly $150 million in BNPL originations during a year of pilot testing. Consumers who have used Afterpay for more than five years transact more than 31 times per year on average, compared to four times a year for cardholders who don’t use Afterpay. This suggests the integration could lead to higher transaction frequency among Cash App users.

The integration offers merchants access to a broader customer base that prefers flexible payment options. As of the third quarter of 2024, Afterpay had driven 460 million customer leads to merchants. By accommodating BNPL options, businesses can attract consumers who might be hesitant to make larger purchases upfront, potentially increasing sales and customer loyalty.

The integration is designed to be seamless for users. Upon making a qualifying purchase with their Cash App card, users can opt to split the payment into installments through Afterpay. The entire process, from selection to payment management, is handled within the Cash App, providing a cohesive user experience. This ease of use is expected to encourage adoption among existing Cash App users and attract new ones seeking flexible payment solutions.

While BNPL services offer flexibility, they also require responsible usage to avoid potential pitfalls such as accumulating debt. Block emphasizes transparent terms and encourages users to utilize these services within their financial means. The integration includes features that allow users to monitor their installment plans and receive reminders about upcoming payments, promoting financial responsibility.

The company is optimistic about Cash App Borrow’s growth prospects. Over the past year, 43% of its active users reported using the service to assist in bill payments, and 33% utilized it to stabilize their cash flow between paychecks. Ahuja highlighted that customers value the financial management capabilities provided by Cash App Borrow, observing that active users generate 13% more inflows and participate in 6% more transactions than non-users.

Introduced in 2013 as Square Cash, Cash App has developed into a business generating $5 billion in gross profit, according to Block chairman and co-founder Jack Dorsey in a letter to shareholders. Block’s ambition is to position Cash App as the leading banking service provider in the U.S. for households earning up to $150,000 annually.

On the technological front, Block has initiated a project dubbed “goose.” This project involves an open-source, on-machine artificial intelligence agent that operates on any large-language model, whether in the cloud or locally, and can be tailored to user specifications. During the call, Dorsey referred to the project as a “foundational” step towards establishing Block as a leader in AI.

About Block

Block, Inc., initially named Square, Inc., is a leading technology firm in the U.S. offering financial services to individual consumers and business merchants. The company is best known for its “Square” point-of-sale system, which helps businesses accept card payments and handle various operational tasks such as inventory, payroll, and bookings.

Additionally, Block runs the widely-used Cash App, a digital wallet app that allows users to transfer money, receive funds, and invest, including in Bitcoin. Established by Jack Dorsey in 2009, Block has become a prominent player in the U.S. point-of-sale system market.

About Afterpay

Afterpay, an Australian fintech company founded in 2014 by Nick Molnar and Anthony Eisen, specializes in a “buy now, pay later” (BNPL) service. This service lets consumers purchase and pay for them in four interest-free installments. Afterpay primarily earns revenue by charging merchants a fee to offer this payment option to their customers. The platform caters mainly to younger shoppers who prefer flexible payment solutions, either online or in-store.

One notable aspect of Afterpay’s service is that it does not require credit checks for most customers and does not impose interest charges, provided payments are made on time. The system is designed for easy integration with the checkout processes of online retailers. Afterpay has expanded its operations beyond Australia to include New Zealand, the United States, Canada, the United Kingdom, and Europe. In 2021, Afterpay was acquired by Block, Inc., formerly known as Square, enhancing its global reach and financial capabilities.

Conclusion

Block Inc.’s strategic decision to integrate Afterpay into its Cash App debit card is a pivotal development in digital payments, mainly aimed at catering to the preferences of Gen Z consumers. This integration not only enhances the Cash App’s versatility, making it a more robust tool for managing personal finances, but it also aligns with the evolving trends in consumer credit, where flexibility and immediacy are highly valued.

Users’ ability to split purchases into manageable, interest-free installments directly through their Cash App offers a seamless blend of convenience and control, potentially increasing user engagement and satisfaction. As Block continues to expand its suite of services and refine this integration based on user feedback and market dynamics, it stands to influence how young consumers engage with digital finance significantly.

This move by Block underscores its commitment to innovating user-friendly financial solutions and strategically positions it to capture a significant share of the burgeoning market for alternative credit solutions.

PayPal and Verifone Join Forces to Upgrade Checkout Options for Retail and E-Commerce

PayPal, a leader in digital payments, has partnered with Verifone, a major provider of in-store payment solutions, to improve the checkout process for both physical and online transactions.

This PayPal-Verifone partnership will give merchants a reliable system to manage sales across different channels while also improving security and efficiency for shoppers. With the increasing overlap between digital and in-person commerce, this move could help both companies meet the evolving needs of consumers and retailers.

Key Takeaways

The PayPal-Verifone partnership aims to bridge the gap between online and offline transactions, providing merchants with a unified and efficient payment experience. This collaboration simplifies payment processing, improves authorization rates, and enhances security for businesses across various industries.
Initially launching in the U.S., the partnership plans to expand into the U.K. and Germany, with potential for further global reach. By leveraging Verifone’s 35 million payment terminals worldwide and PayPal’s extensive digital payment infrastructure, the alliance is set to transform payment processing on a global scale.
By integrating PayPal’s enterprise payment processing with Verifone’s in-store solutions, businesses can reduce operational complexities, lower transaction costs, and minimize fraud risks. The improved checkout experience is expected to increase customer satisfaction and conversion rates.
This partnership highlights the growing trend of strategic alliances in financial technology, focusing on integrated solutions to meet evolving consumer expectations. The collaboration positions PayPal and Verifone as industry leaders, setting the stage for future innovations in omnichannel payments.

PayPal-Verifone Partnership to Integrate Online and In-Store Payments

PayPal has entered the in-person payment space through a collaboration with Verifone.

As part of the partnership, Verifone’s technology for in-person payments will be combined with PayPal’s enterprise payment processing and its e-commerce platform, previously known as Braintree. This collaboration aims to offer merchants a unified, scalable, and adaptable payment solution across multiple channels, bridging the gap between online and offline transactions.

The payment industry has transformed rapidly over the past decade due to technological advancements and changing consumer behaviors. The rise of e-commerce introduced many digital payment methods, while brick-and-mortar stores continued to rely on traditional point-of-sale (POS) systems. This dichotomy often led to fragmented payment processes for online and offline businesses.

Industry leaders have been exploring partnerships and innovations to merge these channels, recognizing the need for unified payment solutions. The PayPal-Verifone alliance is a testament to this trend, aiming to offer merchants a cohesive payment infrastructure that caters to diverse consumer preferences.

Announced in late February 2025, PayPal’s partnership with Verifone combines Verifone’s extensive in-person payment technology with PayPal’s robust enterprise payment processing and e-commerce platform, formerly known as Braintree. This integration will provide merchants with a scalable and flexible omnichannel payment solution.

The collaboration targets a wide array of sectors, including large retail chains, grocery stores, quick-service restaurants, ticketing services, entertainment venues, consumer electronics, and apparel merchants.

The enhanced partnership combines Verifone’s extensive hardware presence — with approximately 35 million terminals worldwide — and PayPal’s newly named PayPal Enterprise Payments, formerly known as Braintree processing infrastructure. Keller highlighted the importance of this PayPal-Verifone partnership, noting its role in furthering PayPal’s strategy for enterprise orchestration. The aim is to develop an omnichannel platform tailored for major retailers, restaurant chains, and global merchants, providing them with a unified platform that handles data, security, and processing across both online and physical retail environments.

Alex Chriss, PayPal’s President and CEO, emphasized the importance of the PayPal-Verifone partnership, noting that it represents a pivotal change in PayPal’s strategy toward omnichannel enterprise opportunities. By teaming up with Verifone, PayPal is paving the way for the widespread adoption of in-person payments, enabling rapid scaling and extending PayPal’s comprehensive capabilities to merchants worldwide.

This collaboration underscores PayPal’s renewed effort to attract enterprise clients as competition intensifies in the retail payment sector. Together, the companies plan to assist merchants in lowering operational expenses and enhancing authorization rates. This combined solution will be integrated into PayPal Open, the company’s new merchant platform, which is also being launched today.

Through this platform, merchants of all sizes can tap into the full range of PayPal’s ecosystem and incorporate a comprehensive array of commerce solutions. While PayPal is renowned for its online payment services, its expansion into omnichannel commerce might be unexpected. Yet, it reflects the increasing need for businesses to adapt to changing consumer demands.

One of the primary objectives of the PayPal-Verifone partnership is to simplify the payment experience for merchants. By integrating PayPal’s enterprise payment processing capabilities with Verifone’s in-store payment solutions, businesses can benefit from:

Unified Payment Platforms: Merchants will have access to a consolidated payment system that manages online and in-person transactions, reducing operational complexities and potential errors.
Improved Authorization Rates: The integrated solution aims to optimize authorization rates, ensuring higher transaction approval rates and reduced payment declined.
Cost Reduction: Merchants can potentially lower transaction fees and associated costs by streamlining payment processes and leveraging combined technologies.
Fraud Minimization: The PayPal-Verifone partnership combines advanced security features from both companies, offering enhanced protection against fraudulent activities.
Increased Conversion Rates: A seamless payment experience can increase customer satisfaction, boosting conversion rates and overall sales.

Himanshu Patel, CEO of Verifone, stressed the significance of their integrated strategy, explaining that by merging Verifone’s secure, robust in-person payment solutions with PayPal’s top-notch e-commerce and processing capabilities, they can provide a distinctive solution. This approach is designed to address the intricate payment requirements of enterprise merchants worldwide, delivering an unlimited commerce experience from two of the most trusted names in the payment industry.

The PayPal-Verifone partnership will launch initially in the United States and expand into the United Kingdom and Germany later in the year. This phased rollout allows both companies to fine-tune their integrated solutions in diverse markets, addressing region-specific payment preferences and regulatory requirements.

The collaboration aims to establish a strong foothold in key markets by targeting major retailers and service providers across various sectors, setting the stage for further global expansion.

The PayPal-Verifone partnership signifies a broader shift in the payment industry towards integrated, omnichannel solutions. As consumer expectations evolve, businesses must offer seamless payment experiences that transcend traditional boundaries between online and offline channels.

This collaboration also underscores the importance of strategic alliances in addressing the complexities of modern payment ecosystems. By leveraging each other’s strengths, PayPal and Verifone are poised to deliver innovative solutions that cater to the dynamic needs of merchants and consumers alike.

Meanwhile, the BNPL (Buy Now, Pay Later) company Klarna has also extended its services to in-person transactions, finding success despite concerns about consumer protection. Earlier this year, Francesco Simoneschi, Co-Founder and CEO of TrueLayer, spoke to Payment Expert about the intense competition in the industry, predicting a fierce battle that will introduce much-needed innovation and competitive pricing for both consumers and merchants.

As Mastercard and Visa have dominated the payment sector for years, PayPal’s move into this space might be seen as a strategic effort to disrupt the longstanding duopoly and carve out a market share.

About Paypal

PayPal is a global leader in digital payments, offering a secure platform for online money transfers and a wide range of financial services. Founded in 1998 and headquartered in San Jose, California, the company has transformed how consumers and businesses transact by bridging the gap between traditional banking and modern commerce. With its innovative payment solutions, PayPal enables users to send, receive, and manage funds seamlessly across online, mobile, and in-person channels, serving millions of individuals and merchants worldwide.

Beyond its core payment services, PayPal is dedicated to driving innovation and expanding financial inclusion on a global scale. The company continuously enhances its offerings by integrating advanced technologies, forging strategic partnerships, and adapting to evolving market trends. Emphasizing security, transparency, and user convenience, PayPal’s diverse suite of products – including merchant services, peer-to-peer transactions, and credit solutions – positions it at the forefront of the digital payment revolution, empowering consumers and businesses to thrive in an increasingly interconnected world.

About Verifone

Verifone is a global leader in secure payment technology, providing innovative hardware and software solutions that empower merchants, financial institutions, and retailers to deliver seamless and reliable transaction experiences. Founded in 1981, the company has built a formidable reputation for developing state-of-the-art point-of-sale systems, mobile payment devices, and integrated software platforms that support a broad spectrum of payment channels—from traditional in-store purchases to advanced digital and contactless transactions.

Beyond its comprehensive product portfolio, Verifone is committed to driving industry innovation through strategic partnerships and continuous investment in emerging technologies. By leveraging its extensive global footprint and deep expertise in secure electronic payments, the company not only enhances operational efficiency for its clients but also plays a pivotal role in shaping the future of commerce. This dedication to security, scalability, and cutting-edge technology enables businesses worldwide to meet the evolving demands of a dynamic digital marketplace.

Conclusion

The PayPal-Verifone partnership marks a pivotal step in the evolution of the payment industry, demonstrating the growing need for seamless, omnichannel solutions. By combining PayPal’s digital payment expertise with Verifone’s in-person transaction capabilities, this collaboration is set to provide merchants with a more efficient, secure, and scalable payment infrastructure.

As consumer expectations shift towards integrated and frictionless payment experiences, this alliance positions both companies at the forefront of innovation. With global expansion plans on the horizon, the success of this initiative could serve as a model for future partnerships in the financial technology space, ultimately redefining how businesses and consumers interact in an increasingly digital world.