Monoup News Digest: Main Updates from Fintech Industry
Last week shacked the industry, showcasing both the unstable nature and dynamic flow of the modern fintech ecosystem. German users were attacked by a wave of unauthorized deductions in their PayPal wallets, which turned out to be the result of a large-scale security system failure.
Visa’s strategic decision to shut down its open banking division in the U.S. left the technology up in the air — what happened and how it will affect our future, read on. As always, we’ve gathered the news you do not want to miss in a brief roundup.
PayPal Antifraud Disruption Led to Freezing of 100 Billion
PayPal’s fraud protection system experienced a critical failure, resulting in serious consequences in Germany. Within days, German banks stopped PayPal transactions worth around 100 billion euros due to suspicions of unauthorized deductions from linked bank cards and accounts.
The American payment platform quickly acknowledged the technical issues that arose over the weekend. According to the company, the vulnerability has already been fixed. However, German Banking Association expressed serious concern over the incident. The country’s financial regulator also joined the investigation, although PayPal representatives claim the level of the issue is not as high as it seems.
It remains unclear whether this failure was the result of a targeted cyberattack on PayPal’s German segment or a systemic bug affecting these specific transactions.
Noda Expands its European Presence: 30,000 Connection Points
Noda payment provider reported a significant expansion of its banking network in Europe. The company integrated its solutions with banking institutions in 28 European jurisdictions, covering more than 30,000 physical branches. For Noda, this reach means entering a large market in the open banking sector on the continent.
The platform’s functionality includes processing both online and offline transactions, QR payments, payment links, and instant interbank transfers. This year, the management announced a shift in focus toward microbusiness segment — a decision that seems more like a long-term marketing strategy rather than a tool for quick monetization. It’s very difficult to profit from small businesses, which is why most payment providers avoid this segment, leaving it underserved.
Over five years in the market, Noda has strengthened its position in open banking solutions, expanding beyond its initial specialization in iGaming industry. Analysts do not rule out that the company’s next step could be obtaining a banking license and directly competing with players like Revolut.
Visa Shuts Down its Open Banking Dep. in the U.S.
Visa announced the closure of its open banking division in the United States amid ongoing disputes over the use of customer data. The company sees fewer chances for a positive resolution of the conflict in favor of fintech sector, believing that traditional banks have a better chance of winning this confrontation. We also covered this topic in detail on Telegram.
The closed division developed tools for fintech companies to simplify access to banking information, verification procedures, and money transfers. Visa emphasized that it is redirecting resources to other markets — European Union and Latin America, where open banking is developing due to active regulatory pressure.
Unlike the European model, where governments force banks to share data with licensed fintech, the U.S. market relies on private agreements, which are extremely difficult to achieve. The prospects for open banking in the U.S. remain unclear. Considering this, it’s unlikely that Pay by Bank solutions will gain significant popularity in the near future.
These are the news highlights for this week, compiled by Monoup experts. To stay informed and react promptly to events, subscribe to our Telegram channel and enable post notifications.
