TikTok Moves Into Lending with Brazil Fintech Push
TikTok is seeking a fintech license in Brazil to launch credit products, signaling a major expansion beyond content into financial services. With its massive user base and deep behavioral data, TikTok could reshape how credit is distributed—potentially embedding lending directly into social experiences. This move reflects a broader trend of tech platforms evolving into financial ecosystems, blurring the lines between social media and banking. For traditional banks and fintechs, this introduces a new kind of competitor—one with unmatched distribution and engagement. It also raises important questions around data usage, regulation, and financial inclusion. If successful, TikTok could redefine customer acquisition in lending entirely. The future of fintech may not just be built by financial companies—but by platforms.
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Insight of the Day
Not All Rails or Stablecoins are Equal
The “average of averages” is often misleading, especially in cross-border payments.
Stablecoins are typically fast (assuming no fiat on-/off-ramp dependencies), but not always cost-effective, with highly volatile pricing. Data from Token Terminal shows Ethereum’s average daily transaction fee over three years was $0.134, with peaks up to $29.58. The median was $0.0074, peaking at $13.093. The variability is significant.
Layer-2 stablecoins offer a different profile, with lower fees despite being built on layer-1s like Ethereum. Over the same period, Arbitrum One recorded an average fee of $0.0127, peaking at $0.7033, with a median of $0.0034 and peak of $0.51072.
The data shows Ethereum’s dominance is driven less by performance and more by liquidity and distribution. Importantly, these figures reflect only on-chain “gas” fees—composed of base and priority fees.
In reality, costs extend across the full value chain: on-/off-ramp fees (including AML/KYC and FX), liquidity provider fees, and PSP or MTO charges tied to transaction size. Additional fees may apply on payout. Users can reduce costs by transacting directly via wallets.
Layer-2s introduce added complexity, combining layer-1 gas fees with sequencer fees. However, batching transactions keeps overall costs lower.
The result: blockchain payments can be cheaper than legacy rails, but pricing remains inconsistent. This highlights the importance of orchestration layers. By abstracting complexity, they route transactions across stablecoin and fiat rails to optimize for cost and speed.
Stablecoins may be preferred for speed or exotic corridors. Traditional rails (e.g., Wise, Airwallex) may be more efficient for liquid currency pairs. Increasingly, legacy players are integrating stablecoins into their own orchestration strategies.
Stablecoins will materially impact cross-border payments—but not as a one-size-fits-all solution.
Curated News
💳 Payments
Visa Launches AI Tools to Transform Dispute Management
Visa has introduced AI-powered tools to automate and streamline the charge dispute process. This reduces friction for banks and merchants while improving resolution speed and accuracy.
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Kulipa Raises $6.2M for Stablecoin Card Infrastructure
Kulipa has secured funding to build stablecoin-native card issuing infrastructure. This helps bridge crypto assets with traditional card networks for everyday spending.
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Rain and Episode Six Partner on Stablecoin Payments
Rain and Episode Six are collaborating to expand stablecoin payment capabilities. The partnership highlights growing institutional interest in crypto-based payment rails.
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Gr4vy and Plaid Expand Pay-by-Bank Globally
Gr4vy and Plaid are enabling global merchants to adopt pay-by-bank solutions. This supports the shift away from cards toward account-to-account payments.
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Paymentology and Bank Zero Expand Financial Access in Africa
Paymentology and Bank Zero are working together to broaden access to digital financial services in South Africa. This reflects ongoing fintech-driven inclusion efforts in emerging markets.
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Asia Leads as Wallet and A2A Payments Surge
Asia remains the most wallet-driven region globally, with rapid growth in account-to-account payments. This trend highlights the global shift toward alternative payment methods.
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🏦 Banking
Monzo Exits US to Refocus on Core Markets
Monzo is shutting down its US operations to concentrate on the UK and Europe. The move reflects strategic prioritization amid growing competition and regulatory complexity.
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Airwallex Expands with Full Launch in Malaysia
Airwallex has received approval for a full launch in Malaysia, strengthening its Asia-Pacific presence. This supports its ambition to build a global financial platform.
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Moneyhub Partners to Support Digital Tax Compliance
Moneyhub is teaming up with The Tax Guys to help users navigate digital tax requirements. This reflects increasing demand for integrated financial and compliance tools.
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💡 Fintech
OpenFX Raises $94M to Expand FX Infrastructure
OpenFX has secured $94 million to scale its foreign exchange platform in Southeast Asia. The funding highlights growing demand for next-gen FX solutions.
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Notch Raises $30M to Build AI OS for Regulated Industries
Notch is developing an AI operating system tailored for regulated sectors, backed by $30 million in funding. This reflects rising interest in compliance-focused AI solutions.
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Approvely Embeds KYC to Strengthen Payments Compliance
Approvely has integrated Sumsub’s KYC capabilities into its payments stack. This enhances compliance and risk management for merchants.
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🪙 Crypto
Franklin Templeton Expands Crypto Strategy with Acquisition
Franklin Templeton has acquired 250 Digital to enhance its crypto capabilities. This move reflects continued institutional expansion into digital assets.
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Brickken Raises €3M for Tokenisation Infrastructure
Brickken has secured funding to scale its tokenisation platform. This supports the growing trend of digitizing real-world assets on blockchain.
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⚖️ Regulation
Australia Passes New Crypto Licensing Framework
Australia has introduced a licensing regime for crypto exchanges, increasing regulatory clarity. This could boost institutional confidence and market stability.
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CaixaBank Secures MiCA License for Crypto Operations
CaixaBank has obtained a MiCA license to operate with crypto assets in the EU. This marks a significant step for traditional banks entering regulated crypto markets.
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🧩 Other
AI Is Making Fraud More Convincing, Survey Finds
Seven in ten consumers say AI is making scams more sophisticated and harder to detect. This highlights growing risks alongside AI adoption in finance.
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Fintech Shutdowns Highlight Market Pressure
AI fintech Smartlayer is shutting down, while VibePay has entered liquidation. These closures reflect increasing pressure on startups to achieve sustainable growth.
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