Fintech Takes

S7 E9: Fintech Recap: Synapse vs. the World, Visa Flex Credential, Buy Now Pay Later Reclassified as a Credit Card

Jun 5, 2024

Guest Jason Mikula discusses the financial drama between Synapse, Evolve, and Tabapay, bankruptcy implications, Visa Flex Credential's payment flexibility, CFPB's reclassification of Buy Now Pay Later, and interesting topics like Solo Funds' lawsuit and Revolut's scam prevention photos

51:43

Episode guests

Jason Mikula

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Highlights

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Episode notes

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Quick takeaways

Synapse bankruptcy led to chaos in BaaS industry with funds dispute.

Visa's FlexCredential can revolutionize card transactions, impacting banking and customer experience.

Deep dives

Synapse vs. Tabapay Bankruptcy Drama

Synapse and Tabapay's deal took a sharp turn causing a bankruptcy saga. Evolve disputed Synapse's fund amounts leading to Tabapay walking away from the deal. The bankruptcy trustee, former FDIC chair Yelena McWilliams, was appointed to oversee claims from creditors like Triplepoint Capital and Silicon Valley Bank.

Reconsidering the Use of FBO Accounts

01:19

Introduction

2min

Financial Turmoil and Regulatory Challenges in the Fintech Sector

20min

Dive into the Intricacies of a Financial Case Involving Synapse

3min

Visa Flex Credential and Payment Customization

5min

Exploring Cross-Network Functionality, Insurance for Digital Lenders, and Challenges for 'Buy Now Pay Later' Providers

2min

Exploring Innovative Financial Products and Concepts

5min

Navigating Regulatory Challenges in Buy Now Pay Later Services

12min

Debating the Efficacy of an Unconventional Fraud Prevention Method in FinTech

3min

We won’t lie— we’re exhausted. Are you exhausted from keeping up with one of the most tiring stories in financial services?

Jason Mikula certainly is, and he’s summoning the strength to join Alex to chat about the current drama between Synapse, Evolve, and Tabapay yet again. Things have devolved on BaaS Island from Lord of the Flies to a straight-up Battle Royale. Can anyone manage to make sense of Synapse’s ledger? The guys do their best to tally up all of the financial damage the bankrupt company has caused. But the better question is, will any of its end users see their money back anytime soon?

Then, Jason and Alex get into Visa’s latest offering, Visa Flex Credential. Will the new card that flexes between funding sources (credit or debit) lead to new innovations?

And what’s up with the CFPB’s reclassification of Buy Now Pay Later as a credit card? Does this actually change anything, or is it all a bunch of semantics?

Plus, in this week’s “Can’t Let It Go,” Jason’s hung up on Solo Funds, the community finance platform being sued for dark patterns that had some mysteriously deleted tweets, and Alex can’t let Revolut’s bizarre hostage-like scam prevention photos go.

Yeah, there’s a lot to unpack on that last one. Let’s get into it.

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01:23 Synapse vs. the World

27:10 Visa Flex Credential

40:05 Buy Now Pay Later Reclassified as a “Credit Card”

49:25 Can’t Let It Go

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