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Revolut Calls Out Meta, Demands Scam Victim Compensation

Hey FinTech Fanatic!

Revolut has taken a bold stand against Meta, calling out the tech giant for not stepping up when it comes to compensating victims of fraud on its platforms.

Just a day after Meta announced a partnership with U.K. banks like NatWest and Metro Bank to improve data sharing and prevent fraud, Revolut’s head of financial crime, Woody Malouf, dismissed the initiative as “baby steps.”

Malouf pointed out that Meta and other social media platforms have no financial incentive to address scams seriously, as they don’t bear any responsibility for reimbursing victims.

With new regulations coming into force this week in the U.K., requiring banks to compensate fraud victims up to £85,000, Malouf made it clear—data-sharing isn't enough. Social platforms like Facebook and WhatsApp, which accounted for the majority of fraud reported by Revolut users, need to do more and take financial responsibility.

As the debate continues, the pressure is mounting on Meta to step up and take financial responsibility for fraud stemming from its platforms. Will they rise to the occasion? We’ll be keeping a close watch.

Stay tuned for more updates on this and other major FinTech stories. I'll be back in your inbox on Monday.

Cheers,

Marcel

INSIGHTS

🇸🇪 Klarna CEO says a European tech brain drain is ‘number one risk’ for company ahead of IPO. “When we looked at the risks of the IPO, which is a number one risk in my opinion? Our compensation,” said Sebastian Siemiatkowski. He was referring to company risk factors, which are a common element of IPO prospectus filings. Click here to learn more

FINTECH NEWS

🇮🇳 Google taps India’s love for gold to boost its credit play. Google is tapping into India's strong affinity for gold to expand its lending market presence. The company announced a partnership with Muthoot Finance, India's largest gold-backed loan provider, to offer secured loans to users across the country.

🇭🇰 Worldline partners with BOCHK to launch open platform card solution in Hong Kong. BOCHK will leverage Worldline’s innovative cloud-native application to further enhance customer experience and expand customer offering with its new Mastercard multi-currency debit card.

🇬🇧 Interactive Brokers expands research offerings with Acuity Trading partnership. The move aims to enhance the research and decision-making tools available to investors using IBKR's services. This integration provides investors with a centralized research platform that offers alternative data sets.

🇧🇷 Praxis Tech maximizes PIX approval ratios in Brazil with new Cascading feature. This new feature, now widely available to businesses on Praxis’ Platform, significantly boosts transaction success rates for payments in Brazil. Read on

PAYMENTS NEWS

🇩🇰 Danske Bank and Klarna are the first to offer recurring payments via Swish. Earlier in September, they announced the rollout of a highly anticipated service for recurring and automatic payments for Swish users. Now, the service is going live with the first two banks, Danske Bank and Klarna, offering the service to their business customers.

Danske Bank and Klarna the first to offer recurring payments via Swish

🇸🇪 Klarna Checkout is now officially Kustom, an independent company by offering a customizable, powerful checkout solution. No immediate action is required, as new features are being rolled out to enhance payment options, customization capabilities, and support services.

🇦🇪 du Pay partners with Emirates NBD to elevate Digital Payment Solutions in the UAE. The partnership aims to simplify fund transfers for du Pay customers in the UAE by providing a unique virtual IBAN, offering enhanced convenience and security for sending and receiving funds directly through the app.

🇬🇪 UniPAY partners with TransferGo. This collaboration will introduce IBAN payout services from the UK and EU to Georgia, facilitating efficient international transfers directly to bank accounts, especially benefiting the Georgian diaspora in sending money back home.

🇺🇸 Visa has introduced the Visa Commercial Solutions Hub, designed to streamline business payment management for financial institutions and businesses, providing a modern, personalized user experience focused on efficiency and ease of implementation.

🇮🇳 Payoneer and Tech Mahindra collaborate to advance global crowdsourcing payments. This collaboration aims to optimize payment capabilities for Tech Mahindra’s innovative crowdsourcing platform, Populii, revolutionizing how businesses engage with the global crowdsourcing industry and manage financial transactions.

DIGITAL BANKING NEWS

📈 Chase soars in the European digital banking race. With £20bn in deposits and a continued focus on digital innovation, Chase is setting a new benchmark for digital banking growth in the UK and beyond.

Key Highlights from Chase’s UK Journey:

Chase soars in the European digital banking race - C-Innovation

🇬🇧 Meta teams up with UK banks to fight scammers. The collaboration through the Fraud Intelligence Reciprocal Exchange (FIRE) aims to enhance Meta's ability to detect and dismantle scam networks on its platforms by enabling UK banks to share information directly, helping identify and take down fraudulent accounts. NatWest and Metro Bank are the first ones to join the FIRE initiative, with Meta anticipating that more will join soon.

🇬🇧 “It Simply Isn’t Good Enough” – Revolut calls for Meta to commit to sharing reimbursement of fraud victims, arguing that its recently announced data-sharing partnership with UK banks and financial institutions falls woefully short of what’s required to tackle fraud globally.

🇬🇧 UK banks now have up to four days to check payments for scams. The UK government will give banks more time to investigate payments they suspect are fraudulent in a welcome reprieve for lenders as they prepare for new rules that will require them to reimburse many customers that fall victim to scams.

🇺🇸 JP Morgan Chase announced plans to hire an additional 75 community managers by 2030 to provide greater access to banking, tools and advice, and help customers get on a path to financial health and resilience. Read the full piece

🇷🇺 The Moscow Region Arbitration Court froze about $372 million in funds from U.S. banks JP Morgan Chase and BNY Mellon held by their Russian affiliates. This decision, initiated by Russia's deputy prosecutor "in defense of the interests of the Russian Federation," follows the Ukrainian central bank's withdrawal of MR Bank's license, with plans to close it by 2025.

🇳🇱 Backbase unveils new Amsterdam headquarters, amplifying its culture of innovation. This move is more than just a change of address; it represents another step forward in Backbase’s mission to re-architect banking around the customer and reaffirms its strong commitment to a culture of collaboration and a can-do mentality.

🇬🇧 HSBC launches embedded finance venture SemFi with Tradeshift. Initial offerings include AI-powered digital invoice financing for SME suppliers and virtual business cards, launching in the UK and Hong Kong, with future plans for digital wallets and purchase order financing.

BLOCKCHAIN/CRYPTO NEWS

🇺🇸 Binance founder CZ is released from US custody. Changpeng Zhao was released after four months from a correctional facility in California last Friday, after being held in federal custody for failures that allowed cybercriminals and terrorist groups to freely trade on the world’s largest cryptocurrency exchange.

🇺🇸 Visa launches platform to help banks issue stablecoins globally. The product, which will be known as the Visa Tokenized Asset Platform or VTAP, will allow banks to “mint, burn and transfer” tokens. While still in the testing stage, the plan is to go live next year, according to a Thursday statement.

🇺🇸 PayPal completes its first business transaction using stablecoin as a way to demonstrate how digital currencies can be used to improve often-clunky commercial transactions. PayPal paid an invoice to Ernst & Young LLP on Sept. 23 using PYUSD relying on an SAP SE platform to complete the transaction. More here

🇺🇸 PayPal CEO on crypto: We're just scratching the surface. Alex Chriss says that becoming an exchange isn’t in the long-term plan for the company. "For us, the real transformation is 'where am I in the world where I can create the right payment to any merchant.'"

🇧🇷 Ripple and Mercado Bitcoin partner to transform crypto-enabled cross-border payments in Brazil. Mercado Bitcoin will use the solution to improve its internal treasury operations between Brazil and Portugal, with plans to support international payments for its corporate and retail customers in the future.

🌐 SWIFT to conduct live digital asset trials: Way for blockchain integration in banking. SWIFT is set to begin live digital asset transaction trials with banks next year, aiming to enhance platform interoperability and prevent fragmented “digital islands” in the blockchain space.