Payments
On July 8, Block agreed to pay $45 million to settle with 46 states over allegations that Cash App misled consumers about its security and fraud protection. The settlement requires Block to improve customer support processes and ensure availability of phone and online chat services.
Block will pay $45 million to 46 states to settle claims that Cash App misled users about fraud protections and failed to provide adequate customer support. The settlement mandates new customer service processes, including extended phone and chat hours. Oregon and Texas led the investigation. Block also agreed to pay $20 million to Washington state over unemployment fraud. The settlement ensures Block's $75 million redress commitment from a 2025 CFPB settlement is enforced by the states.
Payment processor Fiserv disclosed in a filing with the U.S. Securities and Exchange Commission that President Dhivya Suryadevara resigned on Tuesday but will remain until the end of the month to ensure a smooth transition of responsibilities. The company has appointed Andrew Gelb and Srini Krish to temporarily co-lead the financial solutions business.
Fiserv disclosed that President Dhivya Suryadevara resigned effective Tuesday but will stay through month-end for an orderly transition. Andrew Gelb, COO of financial solutions, and Srini Krish, head of technology and operations for financial solutions, were promoted on an interim basis to co-lead the business. The company said strategy and priorities remain unchanged. The departure follows the recent CEO transition to Takis Georgakopoulos and comes as Fiserv has struggled to meet growth goals. Analysts at Robert W. Baird called the exit somewhat disruptive but not overly surprising, noting Suryadevara joined under former CEO Mike Lyons, who left within 12 months of her arrival.
Klarna has submitted an industrial bank (ILC) charter application to the U.S. Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions, planning to internalize its banking operations. The company currently relies on partner institutions like WebBank in the U.S. to provide BNPL services, and this move is seen as a key step in deepening its U.S. market presence.
Klarna, the Swedish buy now, pay later company, has applied for an industrial loan company charter with the Federal Deposit Insurance Corp. and Utah's Department of Financial Institutions. The move would allow Klarna, which already operates as a bank in Europe, to bring its U.S. banking operations in-house and expand its financial services offerings. Klarna joins PayPal and Affirm in seeking an ILC charter, a type of license that has become politically contentious. If approved, the bank would be led by Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank.
U.S. Bank is pursuing Gen Z customers with a payments-first strategy, led by its Bank Smartly credit card and checking account. Arijit Roy, head of consumer and business banking products, said Gen Z views banking through their primary payment vehicle. The Smartly savings product has amassed nearly $50 billion in deposits since 2024, and the bank sees engaged clients parking balances in non-interest-bearing checking accounts. While facing competition from fintechs like Cash App, Chime, and Klarna, U.S. Bank emphasizes trust and longevity, and uses in-app customer goals to prioritize features.
Canadian payments processor Nuvei has appointed three executives to its C-suite: Samir Zabaneh as chief operating officer, Eli Rosner as chief product and technology officer, and David McLaughlin as chief financial officer. The appointments come shortly after Nuvei announced a $2.75 billion deal to acquire New York-based Payoneer Global, aimed at building a larger cross-border commerce business. Zabaneh previously served as chairman and CEO of TouchBistro and held a top executive role at Fiserv. Rosner was most recently CPTO at HealthEquity and has held executive roles at Finastra and NCR. McLaughlin appears to have held the CFO post since April, according to his LinkedIn profile, and was previously CFO at Blackhawk Network Holdings. Former CFO David Schwartz is supporting the transition, and prior chief product officer Moshe Selfin has left the company. Nuvei did not previously have a COO. The Payoneer acquisition is expected to enhance Nuvei's ability to serve small and midsize businesses, especially e-commerce sellers and freelancers, and improve its approach in agentic commerce and AI. Nuvei also recently completed a proof-of-concept transaction in Europe using AI agents with Visa and other payments firms.
Hello Clever, an Australian checkout company, has appointed Justin Grooms as its new president following his departure from Bolt Financial. Grooms will drive the company's merchant services business globally, with a particular emphasis on the U.S., Canada, and Europe. Hello Clever, founded in 2021 by CEO Caroline Tran and CTO Gavin Nguyen, has about 100 employees worldwide and has raised approximately AU$15 million. The company reached $15 million in annual recurring revenue last year. Grooms aims to expand real-time payments and integrate AI into the company's payments offerings and operations.
Corporate spend management fintech Ramp has elevated co-founder Karim Atiyeh from CTO to co-CEO, sharing leadership with co-founder Eric Glyman. Rahul Sengottuvelu, previously head of applied AI, succeeds Atiyeh as CTO. The move follows Ramp's $750 million raise at a $44 billion valuation and reflects the company's focus on AI-driven strategy.