TransUnion Collaborates with Credit Sesame to Launch New Freemium Direct-to-Consumer Credit Education and Monitoring Offering

TransUnion is teaming up with Credit Sesame to launch a freemium credit education and monitoring service, giving U.S. consumers free daily access to their TransUnion credit score and report. The platform will offer personalized financial product recommendations and optional premium credit monitoring. TransUnion expects to roll out the service in phases through the first half of 2025 to engage more consumers and strengthen its direct-to-consumer business. Credit Sesame will handle the product platform and app, while TransUnion manages consumer acquisition and compliance. [TransUnion]

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SoFi Plus Premium Membership Now Offers $1,000+ in Annual Value [Sofi]

SoFi’s newly expanded premium membership, SoFi Plus, is the company’s latest push to be a one-stop shop for digital finance. Priced at $10 per month—or free with direct deposit—it touts over $1,000 in annual value. But the real goal, at least to the Toaster Team, is to secure the coveted direct deposit relationship, which typically boosts retention and multi-product adoption.

Perks include unlimited 1% Invest rewards matches for recurring deposits, free one-on-one financial planning (valued at $250 per session), a $1,000 closing discount on home loans, and more. The question is whether everyday consumers will pay another monthly fee for their finances. Yes, it’s free with direct deposit, but $10 otherwise could be a tough sell—especially when many digital banking services already come with minimal or no fees.

Interestingly, NerdWallet took a similar path by launching NerdWallet+ in early 2024, promoting rewards and tools for smarter financial decisions. There is no public data on the number of premium subscribers. Still, during the Q3 2024 earnings call, CEO Tim Chen noted that premium members show higher lifetime value (5x) than standard registered users.

SoFi is also running its “Power of Plus” sweepstakes to create buzz, offering large sums toward major life goals. Ultimately, SoFi Plus’s success hinges on whether consumers see enough value in paying $10—or committing to direct deposit—and whether SoFi delivers on its promises. If done well, SoFi Plus could become a sticky loyalty engine. If not, it may just be another financial subscription that doesn’t solve real consumer needs.

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Upstart Personal Loans Leap 89% YoY

Upstart saw an 89% surge in personal loan originations last quarter, issuing over 243,000 loans thanks to its AI-powered lending platform. Revenue climbed 24% year-over-year to $219 million, while auto loans skyrocketed 216%. The company secured $1.3 billion in new capital commitments and reported that 91% of loans were fully automated. CEO Dave Girouard highlighted strong HELOC demand, with originations up 60% sequentially, and noted that automation improvements are boosting borrower repayment rates. Upstart’s guidance of $200 million for the next quarter sent its stock up 20% in after-hours trading. [PYMNTS]

Klarna CEO Says the Buy Now, Pay Later Fintech Is Exploring Crypto

Klarna is now exploring cryptocurrency, a surprising shift for the BNPL giant after CEO Sebastian Siemiatkowski once called crypto a "decentralized Ponzi scheme." Following talks with Klarna board member Andrew Reed and crypto firms, Siemiatkowski announced the pivot with a simple "Ok. I give up" post on X. Meanwhile, Klarna is expanding its BNPL reach through a new partnership with JPMorgan Payments, bringing its services to 900,000 businesses. The company has 85 million global customers and is considering a U.S. banking license to enhance its financial offerings. [Bloomberg]

Pagaya Reports Fourth Quarter and Full Year 2024 Results

Pagaya Technologies delivered strong Q4 and full-year 2024 results, surpassing all operational targets. The AI-driven financial infrastructure company reported record network volume of $2.6 billion in Q4—hitting the high end of its outlook—and $9.7 billion for the full year, up 17%, driven primarily by personal loans. Total revenue climbed 27% to $1.03 billion, while adjusted EBITDA soared 88% to $64 million. However, the company posted a net loss of ($238 million) in Q4 and ($401 million) for the year, mainly due to non-cash fair value adjustments and share-based compensation. Pagaya expects GAAP profitability in Q2 2025 and up to $1.275 billion in revenue for the year. [Business Wire]

Zelle® Shatters Records with $1 Trillion Sent in a Single Year

Zelle processed over $1 trillion in payments for the first time—a 27% jump from the previous year. The peer-to-peer payments network saw transaction volume hit 3.6 billion, with total enrolled users growing to 151 million. Small businesses played a big role, completing 500 million transactions worth $283 billion, up 32%. Zelle also expanded its reach to over 2,200 financial institutions, with a strong presence in community banks and credit unions. As fraud prevention remains a priority, Zelle educated 73 million consumers on scam risks while partnering with industry and government groups to enhance security. [Zelle]

FIS Partners with Affirm to Bring Integrated Pay-Over-Time Capabilities Directly to Debit Issuing Banking Clients and Their Cardholders

FIS is teaming up with Affirm to bring pay-over-time options to debit cardholders, letting banks integrate Affirm’s BNPL and monthly payment plans directly into their digital banking apps. The partnership gives FIS a vast network of banking clients access to Affirm’s real-time underwriting and 335,000 merchant network, meeting rising consumer demand for flexible payments. When the program launches, eligible debit users can access merchant-funded financing, including "0% APRs" and extended payment terms. FIS sees this move as a way to boost customer engagement and drive growth for banks in a competitive payments market. [Affirm]

Zeta Valued at $2 Billion In New $50 Million Strategic Fundraise

Zeta secured a $50 million strategic investment, boosting its valuation to $2 billion—a 1.7x jump from its previous $1.15 billion valuation in 2021. The next-gen banking tech provider, known for its cloud-native Tachyon processing platform, has supported over 25 million accounts and expects to double that with contracts in progress. Zeta’s suite of SaaS solutions helps banks and fintechs launch credit cards, loans, and other financial products with modern, API-first infrastructure. Co-founder Bhavin Turakhia credited the rapid adoption of Zeta’s platform as financial institutions move away from legacy systems to improve digital experiences. [Zeta]

Fruitful Launches High-Yield Cash Account & Cash Back Charge Card

Fruitful launched Fruitful Cash and Fruitful Card, bundling high-yield savings, cash-back spending, and one-on-one financial guidance into its $98/month membership. The Fruitful Cash account offers 5.00% APY, while the Fruitful Card, a secured charge card, prevents overspending by tying directly to the cash balance—eliminating credit card debt risk. Members also earn up to 2% cash back on purchases. CEO Sam Lewis said the goal is to move away from traditional banking models that profit from debt and fees, instead offering a transparent, stress-free financial experience. [Business Wire]

Household Debt Hits $18.04 Trillion

U.S. household debt climbed $93 billion in Q4 2024, bringing the total to $18.04 trillion, up $3.9 trillion since the pre-pandemic era. Credit card debt hit $1.21 trillion, rising 7.3% year-over-year, while auto loan balances reached $1.66 trillion. Mortgage balances edged up $11 billion to $12.61 trillion, and HELOC balances saw their 11th straight quarterly increase, now at $396 billion. Delinquency rates ticked up slightly, with 3.6% of outstanding debt in some stage of delinquency, driven by rising credit card and auto loan delinquencies. Student loan balances grew to $1.62 trillion, with missed federal loan payments set to reappear on credit reports in 2025. [NY Fed]

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