Fintech Takes

S7 E5: Fintech Recap: Tipping is Bullshit, Synapse’s Final Chapter, & Pay By Bank’s Intriguing Future

May 8, 2024

The podcast delves into the final chapter of Synapse's bankruptcy, Uber's pay-by-bank implementation, and the absurdity of tipping requests in fintech. They discuss the future of earned wage access, the CFPB consent order with BloomTech, and highlight the need for tech to toughen up. TruStage Payment Guard Insurance is also mentioned as a beneficial solution for digital lenders.

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Episode notes

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Quick takeaways

Synapse bankruptcy resulted in a $9.7 million asset sale, settling disputes and creditors seemingly whole.

Pay by bank gaining traction in the US, with focus on consumer incentives and open banking.

Proposed legislation aims to regulate earned wage access, excluding tips from fees and protecting consumer interests.

Deep dives

Synapse Bankruptcy and Settlement

Synapse filed for chapter 11 bankruptcy, selling its assets to Tabapay for nearly $10 million. They settled a dispute with Evolve, where Evolve agreed to cover any shortfall in funds. Creditors seem like they might walk away whole. Solid also settled a lawsuit with its investor at a discount.

Introduction

2min

Synapse's Bankruptcy and Regulatory Implications

20min

Evolution of Pay by Bank Services in the US

22min

Dissecting the Complexities of Tipping Models and Financial Services Transparency

5min

Regulatory Landscape of Income Share Agreements

15min

Exploring Challenges in Fintech Innovation and Lending

2min

Discussion on Change Management, Business Continuity, and Media Bias in Fintech

5min

Navigating Criticism and Media Biases in Tech Reviews

2min

The tulips are blooming and the windmills are churning—so where in the world is Jason Mikula this week? Jason calls into the pod live from the beautiful Netherlands to break down the latest in fintech news with Alex.

First on the plate? The final chapter in the Synapse bankruptcy saga. After Synapse sold all of its assets to TabaPay for $9.7 million and settled its dispute with Evolve, it appears all parties are walking intact from the ordeal. What did we learn? And what BaaS drama is coming next?

Uber announced it will be implementing pay-by-bank. Not terribly surprising given large merchants’ obsessive focus on reducing payment acceptance costs, but will smaller merchants follow suit? And what do consumers think of pay-by-bank?

Also, pardon our French, but tipping in fintech is complete and utter bullshit. Fintech companies are NOT college students struggling to pay the rent, so why are companies like Dave begging consumers for tips? And how is earned wage access legislation allowing it to be a thing? Alex and Jason go off about tips and discuss the future of EWA.

Plus, Alex and Jason tackle the consent order between the CFPB and BloomTech before diving into this week’s “Can’t Let It Go” segment (and let’s just say that tech needs to grow a tougher shell).

TruStage Payment Guard Insurance is a first-of-its-kind insurance solution built for digital lenders, designed to help you attract more borrowers, strengthen your loan portfolio, and reduce time spent on collections — all with minimal tech lift needed to go live.

To learn more about Payment Guard Insurance, visit https://www.trustage.com/payment-guard.

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