Digital Banking & Neobanks

SoFi Technologies and Mastercard announced that stablecoin settlement went live across SoFi Bank, N.A.'s debit and credit card program, migrating its entire US$25.00 billion card portfolio to SoFiUSD. SoFiUSD is the first stablecoin issued by a nationally chartered bank on Mastercard's global network, positioning bank-issued stablecoins as an operational bridge between traditional payment rails and blockchain infrastructure. The move connects to SoFi's April 2026 launch of Big Business Banking, which lets enterprises manage fiat and crypto, mint and burn SoFiUSD, and access real time payments in a single bank interface. SoFi's narrative projects $7.7 billion revenue and $1.6 billion earnings by 2029, requiring 21.6% yearly revenue growth and an earnings increase of about $1.0 billion from $636.3 million today, while the most pessimistic analysts saw SoFi reaching only about US$6.0 billion revenue and US$1.0 billion earnings by 2029.

Deutsche Bank and J.P. Morgan have both initiated coverage of Nordic online brokerage and savings platform Nordnet, taking opposing views on whether its growth prospects justify its valuation. Deutsche Bank started with a hold rating and a SEK360 price target, saying the shares, trading at about 20 times estimated 2027 earnings and roughly 30% above the peer average excluding Nordnet, already price in much of its growth. J.P. Morgan began at overweight with a SEK401 target, raising its 2027-28 forecasts for brokerage, fund commissions and net interest income to about 8% to 9% above company-compiled consensus. Deutsche Bank forecasts annual EPS growth of about 15% over 2025-28, while J.P. Morgan sees about 14% annually over 2026-30, helped by increased cross-border trading and related foreign-exchange fees. On third-quarter estimates, Deutsche Bank expects transaction-related net income of SEK667 million and net income of SEK927 million, while J.P. Morgan expects transaction income of SEK712 million and net profit of SEK947 million. Nordnet had about 2.5 million customers and SEK1.374 trillion in savings capital at the end of June 2026.

Hokkaido Electric Power announced on the 30th that it will launch its banking service, Hokuden BANK, on October 14. The service will use the banking functions provided by UI Bank, a digital bank under Tokyo Kiraboshi Financial Group, to accept deposits and extend loans. Customers can open an account through a smartphone app and link it with their Hokkaido Electric membership service account. If they set up direct debit for their electricity and gas bills and meet conditions such as maintaining a deposit balance, the point reward rate on bill payments and other transactions will be up to 10 percent.

SoFi Technologies has begun migrating its full debit and credit card program to stablecoin settlement using SoFiUSD across Mastercard's network, a live card program expected to handle more than $25 billion in annualized volume. SoFi Bank has already moved transactions onto blockchain rails, and merchants do not need to hold stablecoins or build new infrastructure to participate. Payward will join the SoFi Exchange Network, list SoFiUSD on Kraken and use SoFi's Big Business Banking capabilities, while SoFi will use Kraken Prime for digital-asset liquidity. In the second quarter, management said roughly $300 million of SoFiUSD was in circulation, and second-quarter adjusted net revenues rose 40% year over year to $1.2 billion, with adjusted EBITDA of $358 million at a 30% margin and fee-based revenues of $472 million. Management lifted 2026 adjusted net revenue guidance to $4.75 billion-$4.85 billion while maintaining about $1.6 billion of adjusted EBITDA, and consensus estimates point to 2026 and 2027 EPS increases of 53.85% and 35.91%, respectively. SoFi shares have fallen 36.7% year to date as of Sept. 25, 2026, compared with a 5.7% decline for PayPal and a 17.4% gain for Block, and SOFI trades at a forward 12-month price-to-sales multiple of 3.83X versus 1.32X for PayPal and 1.63X for Block; SOFI carries a Zacks Rank #3 (Hold).

SoFi Technologies and Mastercard launched live stablecoin settlement across SoFi Bank's debit and credit card program on September 22, with SoFi migrating its entire $25 billion card program to blockchain-based settlement on Mastercard's global payment network. The settlement is powered by SoFiUSD, the first stablecoin issued by a nationally chartered bank, and the companies say the initiative bridges traditional payment rails and digital asset networks to offer card issuers, acquirers, and merchants optimized liquidity management. SoFi reported record adjusted net revenue of $1.2 billion in Q2 2026, up 40% year-over-year, added 1.1 million members to reach 15.8 million total members, and saw interchange revenue jump 55% year-over-year on $28 billion in annualized card spend. Mastercard posted $2.9 trillion in Q2 gross dollar volume, $1.86 billion in Value-Added Services and Solutions revenue, up 20%, and $4.4 billion in Q2 net income. The article also flags execution risks, noting SoFi's $14.8 billion in Q2 loan originations and $156.6 million in Q2 GAAP net income, and Mastercard's 22% year-over-year rise in payment network rebates and incentives alongside an 11% increase in adjusted operating expenses.

Valley National Bancorp will acquire digital banking platform Bluevine for total consideration of about $340 million, both companies said on Monday. The consideration is expected to consist of about 75% cash and 25% Valley common stock, and inclusive of expected synergies the acquisition is expected to be nearly 8% accretive to estimated 2028 earnings per share. The transaction is also expected to result in nearly 5% tangible book value dilution at closing, with an estimated earn back period of about 3 years. The companies said the acquisition directly aligns with Valley's stated strategic priorities of enhancing its funding base, expanding its small business franchise, and accelerating its digital and artificial intelligence strategy. Founded in 2013, New Jersey-based Bluevine serves roughly 175,000 active small business customers, and the acquisition is expected to close in early 2027.

VEON and its Bangladesh subsidiary Banglalink hosted the inaugural investor symposium for the "Invest in Bangladesh NOW!" initiative in New York City on Thursday, on the sidelines of the United Nations General Assembly. The initiative, launched earlier this year, is a proposed public-private partnership with the Government of Bangladesh anchored by VEON's initial USD 250 million capital commitment, with the broader ambition of mobilizing USD 1 billion in total foreign direct investment into the country's digital economy. The closed-door roundtable drew Bangladesh's Finance Minister Amir Khosru Mahmud Chowdhury and senior government officials, along with representatives from the Government of the UAE, the US Department of State, and global investors and development finance institutions including BlackRock, Rothschild, the IFC and the World Bank. The event also highlighted recent milestones, including approval from the Bangladesh Telecommunication Regulatory Commission for Banglalink to launch Starlink Direct-to-Cell satellite-to-mobile service, which would make Bangladesh the first country in South Asia to introduce the technology, and the Finance Minister's announcement of approval for a new digital bank license backed by VEON, Banglalink and Square Group. Banglalink separately launched Mukto Pay, its new digital payments platform for transfers, merchant and bill payments, and disbursements.

Advent International has held initial talks about acquiring a minority stake in Monzo, the British neobank that is simultaneously in takeover discussions valuing it at as much as £10bn. The private equity firm, which recently explored a $53bn (£40bn) bid for PayPal, is one of several buyout firms that have held early discussions about a minority shareholding in Monzo, talks running in parallel to a takeover approach from Brazilian digital banking giant Nu Holdings, the owner of Nubank. Bankers said a deal with one of the private equity suitors would only be viable if the talks with New York-listed Nu Holdings stalled. Monzo's board is also exploring a new round of venture capital funding, with proceeds used to facilitate further expansion in mainland Europe. Monzo, which recently surpassed 16 million customers, was last valued at £4.5bn in a secondary share sale in October 2024 and is likely to be worth between £8bn and £10bn in any transaction; in its most recent annual results it reported a 39% surge in revenue to £1.7bn and adjusted pre-tax profit 20% higher at £172.6m. Advent and Monzo declined to comment.

Payward, the parent company of crypto exchange Kraken, will "soon acquire" a European bank, co-CEO Arjun Sethi said, according to a CoinDesk report on September 26. The acquisition target was not disclosed, but Bloomberg reported on July 14, citing people familiar with the matter, that Payward planned to buy a Lithuanian bank and was in talks with a specific bank. The deal would require regulatory approval, however, and there is no guarantee it will go through. Behind the move is Payward's strategy of expanding from a crypto exchange into a comprehensive financial infrastructure company, with its "One Ledger" concept of managing funds and assets on a shared ledger at the core. The company plans to run four areas on the same foundation: Kraken's trading, banking, asset management, and the institutional infrastructure Payward Services, and it is bringing in the necessary capabilities both through in-house development and through acquisitions of companies with regulatory licenses and specialized technology. The company acquired U.S. futures trading platform NinjaTrader for 1.5 billion dollars, and in April agreed to acquire U.S. derivatives firm Bitnomial for up to 550 million dollars. In banking, it applied to the U.S. Office of the Comptroller of the Currency in May for a national trust bank charter, obtained authorization in Europe as an electronic money institution and crypto asset service provider, and in August launched trading in more than 7,000 U.S.-listed stocks for eligible customers in the European Economic Area. Through its institutional Payward Services business, it offers custody, liquidity, compliance, and payments functions via a common API, and according to co-CEO Sethi, at least 25 companies are developing services on that platform. According to CoinDesk, Payward's adjusted revenue in the second quarter of 2026 was 508 million dollars, up 17 percent from a year earlier, and co-CEO Sethi said the company remains profitable and can fund the investment needed for expansion from its own balance sheet.

JR Kyushu and SBI Holdings announced on September 25 that they will jointly develop a financial super app, tentatively named "JQ BANK," aiming to begin offering it during fiscal 2027. The plan assumes JR Kyushu will obtain a banking agency license with SBI Shinsei Bank as its affiliated bank, and it will leverage SBI Shinsei Bank's functions for banking and SBI Securities' functions for the securities segment. The financial platform underpinning JQ BANK will extend to crypto assets, FX, and stablecoin payments, with AI agents and media features also under consideration. Building on existing customer bases such as JR Kyushu Web members, the transit IC card SUGOCA, the JQ CARD credit card, and the JR Kyupo point service, the companies are considering offering perks tied to JR Kyushu Group services in station buildings, real estate, hotels, retail, and dining based on customers' use of financial services. Preferential mortgage rates are also under consideration, with JR Kyushu positioning itself not as a creator of financial products but as the holder of the gateway connecting finance and customers.

Mastercard has switched on stablecoin settlement for SoFi Bank's debit and credit cards, using SoFiUSD across a reported $25b card program and tying blockchain-based assets directly into its existing global network. The launch adds to recent card partnerships and open finance integrations that feed into how the market weighs Mastercard's future growth potential against execution and regulatory risk. Mastercard's stock has a 90 day share price return of 13.75%, while the 30 day move is down 5.15%, and its total shareholder return stands at 45.96% over three years and 62.33% over five years. Against a last close of $567.65, the most followed narrative on Mastercard argues for a fair value of $750, a 24% undervalued view. On the other side of that narrative, Mastercard trades on 30.6x earnings, while the fair ratio sits at 21.5x, the US Diversified Financial industry at 17.3x, and direct peers around 48x.

DingoBlu Financial, Inc. announced a strategic partnership with MVB Bank, Inc. under which MVB will provide the regulated banking infrastructure supporting eligible DingoBlu deposit products and related banking services, while DingoBlu supplies the technology platform and digital experience for clients to access and manage their accounts. DingoBlu, a Visa fintech partner, will run its debit card program on the Visa network through MVB Bank. The Charlotte, North Carolina-based fintech is developing a mobile-first platform with planned offerings including checking and savings account options, digital account-management tools and Visa debit card access, with specific product features, rates, fees, terms and availability to be shared closer to launch. DingoBlu Chief Executive Officer Thomas Ulry said partnering with MVB brings the company one step closer to introducing the DingoBlu experience, while MVB Financial Corp. President and CEO Larry F. Mazza said MVB's banking expertise and regulatory capabilities provide a strong foundation for DingoBlu's growth. MVB Financial Corp. trades on Nasdaq under the ticker MVBF.

The Digital Currency Innovation Institute, a general incorporated association working to standardize tokenized deposits, held a press conference in Tokyo on September 25 and announced it will begin full-scale operations on October 1. Former Administrative Vice Minister of Finance and lawyer Eijiro Katsu will serve as representative director, former Bank of Japan Governor Haruhiko Kuroda will serve as executive advisor, and Hiromi Yamaoka, former head of the BOJ's Payment and Settlement Systems Department and chair of the predecessor Digital Currency Forum, will serve as deputy representative director. The institute was formed by reorganizing and developing the Digital Currency Forum, which was launched in 2020, and was established as a corporate entity in July this year. It aims to establish common rules for systems that tend to differ from bank to bank and to expand use in inter-company remittances and payments. The institute will operate through three committees: a banking committee, a technology committee, and a user committee, and its directors include executive officers from major financial institutions such as SBI Shinsei Bank, GMO Aozora Net Bank, and MUFG Bank. Regarding DCJPY, Japan Post Bank will maintain its plan to issue it during fiscal 2026, while Hokuriku Bank plans to move toward commercialization in its payment business, and more than 40 companies have so far decided to join the institute or are considering doing so.

PayPal has secured a partnership with Meta that brings one-tap checkout inside the Facebook feed, a deal announced at Shoptalk 2026 that is expected to eventually extend to Instagram. The Meta tie-up joins PayPal's existing commerce agreements with Google, OpenAI, and Perplexity, positioning the company as a default payment rail in social and AI-native commerce. The catalyst lands on top of a solid Q2 2026 report in which PayPal delivered non-GAAP EPS of $1.38 versus $1.28 expected on revenue of $8.68B, up 4.75% year over year, with total payment volume of $486.4B and Venmo TPV up 14%, prompting management to raise full-year non-GAAP EPS guidance to approximately $5.38. 24/7 Wall St. rates the stock a buy with a $57.11 price target and 90% confidence, implying roughly 8.5% upside from a current price of $53.45, though PayPal shares are down 20.77% over the past year and 12.94% in the past month. The bull case also rests on Venmo monetization, where users of both Venmo debit and Pay with Venmo generate more than nine times higher ARPA than peer-to-peer-only users, and on capital return, with PayPal repurchasing $6 billion of stock on a trailing-12-month basis.

Walmart's decision to accept Apple Pay and Google Pay after a long holdout is a major coup for mobile wallets and a wake-up call for banks, according to American Banker. Ed Dean, vice president of product at Nuvei, said even a retailer with Walmart's scale to promote its own payment experience has recognized the value of accepting the methods customers already use, warning that banks, merchants, and payment providers that fail to support those preferences risk losing transaction volume and everyday relevance. A recent report from Worldpay found that digital wallets in the U.S. represent 40% of online transaction value and 17% of in-store point-of-sale value, underscoring where the trend is headed. Prashant Shah, vice president of product management at SoFi Tech Solutions, said banks may still hold the primary financial relationship, but the battle is now over payment primacy, noting that if a bank's card isn't the one the customer actually uses, it loses spend and interchange to another issuer even if the checking account stays put. Tony DeSanctis, vice president at Cornerstone Advisors, told American Banker that community banks have largely neglected mobile wallet usage for years and large banks also haven't been on top of things, citing a generational lack of understanding of mobile wallets' ubiquity among younger consumers. A 2026 report from Pulse found that 17% of all debit transactions were initiated through a mobile wallet, with 11.7 card-not-present transactions a month, up 8.3% from the previous year, and 19.7 monthly card-present transactions, up 0.2% from a year earlier.

Coinbase announced a partnership with Stablecore on September 16, 2026, embedding digital asset capabilities into the core banking systems used by more than 3,000 community banks and credit unions. The deal plugs Coinbase into existing core banking providers such as Q2 and Jack Henry, letting legacy institutions offer tokenized deposits, digital asset accounts, and collateralized loans without overhauling their technology stacks. It is Coinbase's second major distribution play in September alone: six days earlier, on September 10, the exchange partnered with Moov to bring stablecoin payments and real-time funding to another 1,000-plus institutions. Together the two deals reach into a US long tail of more than 4,700 community banks and 4,700 credit unions. Coinbase's Alec Lovett said community banks and credit unions should not have to choose between staying local and staying current, while Stablecore's Alex Treece said banks should not have to migrate to entirely new platforms to support digital assets. The push comes as the OCC's November deadline looms as a potential catalyst for federal clarity; PYMNTS Intelligence data shows 77% of consumers would open a stablecoin wallet through their existing banking or fintech application, but if the OCC deadline slips or the final rule narrows eligibility, the new integrations stay dormant.

Nik Storonsky, founder and chief executive of the British fintech company Revolut, said the company is considering a dual listing in New York and London, confirming earlier press reports. In an interview with the French business newspaper Les Echos, Storonsky said that while the United States, with its larger market and easier access to investors, is the preferred listing destination, the company is in fact thinking of a dual listing on the London Stock Exchange and New York's Nasdaq. He added that building brand strength in the United States could allow customers to buy shares and take part in the initial public offering, potentially leading to a higher valuation in the market. The final listing depends on market conditions, but it is expected to be at least a year away, as prior reports have suggested 2028. London-based Revolut provides financial services through its app and has continued to expand since its founding in 2015, now serving 80 million customers worldwide. In a share sale last November, its valuation reached 75 billion dollars, making it Europe's most valuable startup. In April, the Financial Times reported that Revolut had told investors it was aiming for a valuation of up to 200 billion dollars at the time of its stock market listing.

Grab has signed definitive agreements with Atome Financial, Advance Intelligence Group and other parties to acquire a controlling 60% stake in Atome Financial for $1.49bn in cash. The deal would fold Atome Financial's buy now, pay later loans, consumer cash loans, BNPL cards and digital lending into Grab's financial services unit, which spans payments, digital banks, partner lending, insurance and consumer lending. Atome Financial operates in Singapore, Malaysia, the Philippines, Indonesia and Thailand and has 25 million cumulative transacted users, while Grab reaches nearly 54 million Monthly Transacting Users and Atome Financial's network covers more than 30,000 brands. Grab said the $1.49 billion cash consideration includes $0.26bn in primary growth capital as Phase 1, and the transaction is due to close by the third quarter of 2027, subject to regulatory approvals and other customary closing conditions. After completion, Grab will consolidate Atome Financial into its Financial Services segment, with Atome Financial's management team remaining in place to oversee the business.

American Express Company is expanding beyond cards with a new high-yield savings option for business clients, bringing Business Checking and Business Savings under AmEx Business Banking so customers can manage banking and Card products in one place without needing an AmEx card to apply. The offering provided a 2.95% annual percentage yield as of Sept. 15, with no minimum balance or monthly maintenance fee, free ACH, wire and check deposits, instant fee-free transfers between Business Checking and Business Savings, and same-day ACH transfers at $10. The platform will later add a Graphite Business Cash Unlimited Card rewards deposit feature expected later this year, with Reward Dollars redeemable into Business Checking at 1:1, and a Gusto-powered payroll solution with AI insights expected early next year. An AmEx survey of 1,165 small-business financial decision-makers found 82% believe excess cash could be put to better use in savings, 93% want banking and financial tools to work together seamlessly, 81% want better visibility into upcoming payroll payments and 65% prioritize payroll streamlining. The financial opportunity centers on deposit growth and broader product usage, with business deposits giving American Express an additional funding source, though paying interest on those balances will affect the economics of the offering depending on how quickly deposits grow and how effectively those funds are deployed.

The European Central Bank, or ECB, is accepting applications from online and mobile merchants in the eurozone to join a 12-month digital euro pilot project, which is expected to begin in the second half of 2027. Interested parties can submit applications until October 27. Selected businesses will enable payments with a beta version of the digital euro in a remote commerce environment and test how the currency works with checkout counter payment processes. The pilot will assess user experience, technical functionality and operational processes of the digital euro, with the beta version closely resembling the currency described in draft legislation, though it will not yet have legal tender status. Participation is voluntary and unpaid. Applicants will be evaluated on market reach, operational readiness and suitability, and those selected will need to establish or adjust relationships with participating payment service providers. Previously, in July, the ECB selected 36 payment service providers from more than 50 applicants, including Revolut, Stripe, Deutsche Bank and UniCredit. Participants were tasked with supporting user access, merchant acceptance, or both. Merchant feedback will help inform design decisions, and a final decision on issuing the digital euro will only be made after relevant European Union legislation is approved.