Chime sues other San Francisco fintech over 'most loved' trademark

Chime Financial is suing Kikoff Inc. for trademark and trade dress infringement, claiming Kikoff copied its Instagram branding and tagline. Chime, a fintech company offering no-fee banking and credit-building services, alleges Kikoff's use of “The #1 most loved credit builder” closely mimics Chime’s registered trademark, “The #1 most loved banking app.” Chime also argues that Kikoff's Instagram layout, color scheme, and design elements are nearly identical to its own, misleading consumers into thinking the two companies are affiliated. The lawsuit seeks an injunction, damages, and legal fees. [San Francisco Business Times] 

Note: one member of the Toaster team previously worked for Chime and is a shareholder.

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Visa outlined its growth strategy on investor day, emphasizing its expansion into under-penetrated markets and service-based revenue. The company is doubling down on its "Visa-as-a-Service" approach by unbundling its platform to support more payment types and clients. Value-added services (VAS), which make up 24% of revenue and are growing 20%+, are a key driver of Visa’s long-term outlook. While Visa didn't provide a formal financial forecast, it remains optimistic about achieving high single-digit to low double-digit revenue growth, fueled by its expanding services and new payment flows. [Visa Investor Day 2025]

Toaster’s Take:

Visa-as-a-Service (VaaS) makes it much simpler to launch card products and reach new markets. Instead of relying on a single platform, partners can pick from Visa’s services, such as tokenization or fraud detection, to quickly build customized solutions. This setup shortens development cycles and lowers tech barriers, helping established banks and emerging fintechs get new offerings to market faster.

With VaaS, newcomers such as digital wallets and non-financial enterprises can more easily embed Visa capabilities, spurring fresh competition among card issuers. Yet Visa’s modular approach and global reach mean it stands to benefit from the rush of new partnerships and products. Security is a big selling point, too, since Visa’s AI-driven fraud tools and tokenization are especially valuable in a crowded payments space.

Looking ahead, Visa believes this strategy can support 9–12% annual revenue growth, with continued gains in core consumer payments, expanding VAS (not to be confused with VaaS), and surging cross-border volumes.

Bottom line: Visa-as-a-Service isn’t just a tweak to an existing platform—it’s a transformative shift that promises to shape the next wave of payment innovation.

Stockholders Approve Capital One’s Proposed Acquisition of Discover

Capital One and Discover just got the green light from stockholders to move forward with their $35.3 billion merger. Over 99% of shareholders from both companies backed the deal, which aims to create a global payments powerhouse with 70 million merchant acceptance points. The acquisition still needs approval from regulators, including the Federal Reserve, before it can close later this year. Lawmakers like Rep. Maxine Waters and Sen. Josh Hawley have raised concerns, but Capital One and Discover are now pushing ahead. [Pymnts]

Toaster’s Take: Why this matters:

Combined, the two companies would have a 19% share of the $1.3 trillion market in revolving consumer loans. JPMorgan Chase is currently number one with a 16% market share. [American Banker]

In addition to Discover’s credit card portfolio, Discover has its payment network. Merging with Capital One allows the company to leverage proprietary network capabilities (Discover Network) and a much larger cardholder base (Capital One’s core credit card customer base). This could strengthen the merged entity’s competitive position relative to other top card issuers and networks.

Because both Capital One and Discover traditionally focus on direct consumer relationships, the combined entity might gain additional negotiating leverage with merchants or co-branded partners. This could influence reward structures or interchange pricing in the long term.

Credit Karma Reports $511MM in Quarterly Revenue, Up 36% YoY

In their prepared remarks, Intuit leadership reported:

“Credit Karma revenue growth accelerated again this quarter to 36 percent, reflecting strength in credit cards, personal loans, and auto insurance. On a product basis, credit cards accounted for 15 points of growth, personal loans accounted for 14 points, and auto insurance accounted for 6 points. As a reminder, starting in Q3 we are lapping the strong growth in auto insurance that began a year ago. We are pleased with our early results this tax season as we execute on our vision for one consumer platform with a seamless customer experience across TurboTax and Credit Karma.”

When Alex Zukin with Wolfe Research asked Intuit to contextualize Credit Karma’s performance in the Q&A, Sasan Goodarzi, Intuit’s CEO, responded:

“And so, when you look at, you know, our accelerated growth rate, probably 40% is macro, things are just better versus last year, 60% is execution. And we love our trajectory. More importantly, we love the integration that we've done with TurboTax because for us, everything is about helping customers manage their money and helping them get their taxes done. And lastly, I would just say that, you know, this is a segment in the long run that we would expect to grow 10% to 15%.” [Intuit]

Why Intuit is marketing TurboTax and Credit Karma together for the first time

Intuit is launching its first joint ad campaign for TurboTax and Credit Karma, highlighting how the two platforms work together to streamline tax filing and financial planning. The ad, created by R/GA, promotes TurboTax expert assistance within Credit Karma and the ability to receive tax refunds up to five days faster when using a Credit Karma account. This move, led by Intuit’s new CMO, Thomas Ranese, aims to extend TurboTax’s marketing beyond tax season by positioning Credit Karma as a year-round financial partner. Intuit hopes the campaign will boost awareness of the platforms’ cross-functional benefits and encourage long-term customer engagement. [Ad Age]

(See the full TV spot below)

CFPB Agrees to Drop Case Against SoLo Funds as Agency Cuts Back

The CFPB agreed to drop its lawsuit against SoLo Funds, a peer-to-peer lending platform, as part of a broader rollback of enforcement actions. The lawsuit, ongoing since May 2024, accused SoLo of enabling loans with annual percentage rates exceeding 1,000% despite branding itself as fee- and interest-free. The CFPB is now halting multiple enforcement proceedings and cutting over $100 million in contracts. Meanwhile, SoLo Funds, which once boasted nearly 2 million users and backing from Serena Williams' venture fund, continues to face legal challenges, including a class action lawsuit over its lending practices. [Bloomberg]

Growth in Originations Expected Across Multiple Credit Products in 2025

Despite uncertainty around interest rate cuts, TransUnion expects new account originations across auto, mortgage, and unsecured personal loans to grow in 2025. According to its Q4 2024 Credit Industry Insights Report, mortgage originations could see the biggest jump, up 13.3%, while auto and personal loans are projected to rise 2.7% and 5.7%, respectively. Unsecured personal loan lenders are expected to expand lending to riskier tiers as the macro economy moderates, with originations forecast to reach 20.8 million in 2025.

The report also highlights shifting trends in credit card originations. “Prior predictions had anticipated a moderation in delinquency rates in Q1 2025,” said Paul Siegfried, TransUnion’s SVP of credit cards. “The peak was pulled forward by the effect of recalibrated risk strategies and disproportionate originations in prime and above segments.” He also noted signs of rising consumer demand for credit cards, as “year-over-year originations declines are getting smaller, and some risk tiers, such as super prime, are increasing for the first time in several quarters.”

TransUnion sees these trends as signs of cautious but steady consumer borrowing growth. [TransUnion]

Virginia bill would effectively ban fintech lending

A proposed Virginia bill, SB 1252, would extend the state's 12% interest rate cap to fintech lenders, potentially shutting them out of the market. The bill aims to block "rate exportation," a practice that allows banks and fintechs to offer higher interest loans across state lines. Critics, including the American Fintech Council, argue the bill is too broad and could cut off credit access for 235,000 Virginians, affecting $800 million in annual lending. With fintech advocates urging a veto, all eyes are on Governor Glenn Youngkin as he decides the bill's fate. [American Banker]

Ascenda and Galileo Financial Technologies Collaborate to Elevate Card Loyalty Programs

Ascenda, a leader in loyalty-as-a-service, teamed up with Galileo Financial Technologies, a SoFi-owned fintech platform, to enhance card loyalty programs for banks, fintechs, and brands. This partnership combines Galileo’s financial services infrastructure with Ascenda’s expertise in rewards, making it easier for businesses to launch seamless, engagement-driven loyalty programs. The collaboration aims to boost customer retention and satisfaction while simplifying the integration of top-tier rewards across industries like travel and hospitality. [PR Newswire]

Earnest Welcomes Emily Childers as Chief Marketing Officer

Earnest, a fintech company focused on student and professional lending, named Emily Childers its new Chief Marketing Officer. Childers, who previously led growth marketing at Intuit’s Credit Karma, brings nearly two decades of experience in customer acquisition and financial product scaling. She aims to enhance Earnest’s marketing strategy with a data-driven, customer-first approach to help borrowers make informed financial decisions. CEO David Green praised her expertise, emphasizing her role in expanding Earnest’s reach in the evolving student loan landscape. [Business Wire]

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