Western Union acquires Intermex for $500M 🤝💸; Paxos renews federal banking charter push 🪙🏦; Leadership crisis at N26 😳🇩🇪
You're missing out big time... Weekly Recap 🔁
👋 Hey, Linas here! Welcome back to a 🔓 weekly free edition 🔓 of my daily newsletter. Each day, I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech.
If you’re not a subscriber, here’s what you missed this week:
The Agentic AI Survival Guide 🤖📚 [from autonomous workflows to enterprise-grade security & strategy, these resources will take you from curious observer to informed builder in the age of Agentic AI]
The Ultimate List of Resources about Stablecoins 🪙 [your one-stop resource list for understanding the most disruptive force in global finance]
AI Agents & MCPs Starter Pack: 10 Curated Repos to Learn, Build, & Scale Autonomous Agents 🤖 [from zero to builder - this toolkit has everything you need to master the agentic future of AI]
The AI Code has been cracked: welcome to new, AI-first reality 🤖 [AI's experimental phase just ended. This new report reveals the hard data behind a new economic reality, and why most are already playing catch-up]
Circle’s first earnings as a public company: a digital currency infrastructure play wrestling with questionable valuation reality 🤔📊 [deep dive into Circle’s Q2 2025, breaking down the most important facts & figures, what they mean, and what’s next for the stables giant + bonus deep dives into Coinbase, Chime, and other good resources inside]
eToro’s Q2 2025: an undervalued FinTech diamond in the rough 💎📈 [deep dive into their Q2 2025 earnings, unpacking the most important facts & figures, what they mean and why you should be bullish on eToro]
Adyen: premium FinTech infrastructure giant facing its stress test 📊💳 [deep dive into their latest H1 2025 financials, unpacking the most important facts & figures, what they mean, and whether Adyen is worth your time and money in 2025 and beyond + lots of deep dives into Adyen’s competitors & peers]
Jack Dorsey Block's Q2 2025, or dual-edged FinTech transformation 🤔📊 [a deep dive into their dual-edged transformation, breaking down the most important financial facts & figures, and what’s next for Block + bonus deep dive into their biggest competitor PayPal]
Bullish’s bullish NYSE debut 🤯📈 [what it’s all about & what it indicates us]
The Ultimate B2B Growth Playbook for 2025 🚀 [nail your targeting, supercharge your outbound strategy, and close deals with confidence]
As for today, here are the 3 incredible FinTech stories that are transforming the world of financial technology as we know it. This was yet another insane week in the financial technology space, so make sure to check all the above stories.
Western Union acquires Intermex for $500 million 😳💸
The news 🗞️ Western Union WU 0.00%↑ has just announced its intent to acquire International Money Express aka Intermex IMXI 0.00%↑ in an all-cash transaction valued at approximately $500 million.
This marks a significant consolidation move in the increasingly competitive remittances sector, and offers Intermex shareholders $16 per share, representing a substantial 70% premium over the company's closing price of $9.28 on August 8. Not too shabby!
Let’s take a look at this.
More on this 👉 The acquisition addresses Western Union's need to strengthen its retail footprint while expanding its presence in high-growth Latin American corridors.
Intermex brings 6 million customers and approximately 10,000 U.S. send locations to Western Union's existing network of 40,000 locations, creating a combined customer base of roughly 21 million users. This expansion is particularly valuable given Western Union's recent challenges, with the company's stock declining 31% over the past 12 months amid pressure from digital FinTech competitors (think Wise, Remitly & co.).
Western Union expects the transaction to generate $30 million in annual cost synergies within 24 months and projects immediate accretion to adjusted earnings per share of more than $0.10 in the first full year following completion.
The deal structure eliminates dilution concerns for Western Union shareholders while providing Intermex investors with significant immediate value in an uncertain market environment.
Zoom out 🔎 The acquisition presents intriguing technological opportunities, particularly regarding Intermex's existing relationship with Ripple. Since 2020, Intermex has utilized Ripple's On-Demand Liquidity service, leveraging XRP for efficient cross-border settlements in U.S.-Mexico remittance corridors. While Western Union previously tested Ripple's technology without scaling implementation, acquiring an active user could potentially lead to broader adoption across Western Union's global network. What does this mean for Ripple’s XRP? Pretty obvious.
The combined entity will also focus on digital transformation initiatives, with plans to migrate Intermex's predominantly cash-based customer base to Western Union's digital platforms. This strategic shift addresses the growing competition from pure-digital players such as Wise and Remitly RELY 0.00%↑, which have captured market share through lower fees and enhanced user experiences.
The transaction obviously remains subject to customary regulatory approvals, including clearance under the Hart-Scott-Rodino Act and various financial regulatory approvals. Both companies' boards have unanimously approved the agreement, with Intermex's board acting on recommendation from its independent Strategic Alternatives Committee.
The deal is expected to close in mid-2026, allowing sufficient time for thorough regulatory review and integration planning.
✈️ THE TAKEAWAY
What’s next? 🤔 This acquisition signals a broader consolidation trend within the traditional remittances industry as established players respond to FinTech disruption through strategic mergers rather than organic innovation. The global remittances market, projected to exceed $800 billion annually with digital channels experiencing the fastest growth, is witnessing increased fragmentation between traditional cash-based services and emerging digital alternatives. For Western Union, success will depend heavily on integration execution and the company's ability to realize projected synergies while maintaining service quality during the transition. The potential expansion of Ripple's ODL technology across Western Union's network could enhance settlement efficiency and reduce costs, positioning the combined entity to compete more effectively against blockchain-based payment solutions and stablecoin transfers. Zooming out, the broader FinTech landscape may see accelerated merger and acquisition activity as traditional payment providers seek scale and technological capabilities to compete with nimble digital natives. This could lead to further industry consolidation while potentially compressing take rates for incumbent players in the cross-border payments ecosystem.
ICYMI: Remitly’s Q2 2025: undervalued digital remittance leader finally achieving sustainable profitability 👏🤑 [a really deep dive into their latest financials, breaking down the key facts & figures, what they mean & why Remitly is worth your time in 2025 & beyond]
Paxos renews federal banking charter push 😳🏦
The news 🗞️ Paxos Trust Company has submitted a renewed application for a US national trust bank charter with the Office of the Comptroller of the Currency, marking the cryptocurrency firm's second attempt to secure federal banking oversight.
The move represents part of a broader industry trend as digital asset companies seek greater integration with traditional financial infrastructure.
Let’s take a look at this.
More on this 👉 The blockchain infrastructure company, which powers PayPal's PYUSD stablecoin, aims to convert its existing New York limited-purpose trust charter into a federal charter that would enable nationwide operations under OCC supervision. Unlike traditional banking licenses, the national trust charter would allow Paxos to custody customer assets and process payments across all states without permitting cash deposits or loan issuance.
This application follows Paxos's initial attempt that began in 2020. While the company received preliminary conditional approval from the OCC in April 2021, the authorization expired in March 2023 when Paxos failed to meet the required 18-month operational window. The company has continued operating under its New York state charter, which it has held since 2015 as the first blockchain company to receive such regulatory approval.
The renewed application comes shortly after Paxos resolved significant regulatory challenges. The company recently reached a $48.5 million settlement with the New York Department of Financial Services regarding compliance failures related to its former partnership with cryptocurrency exchange Binance. Under the settlement terms, Paxos will pay $26.5 million in penalties and invest an additional $22 million in compliance program improvements.
The NYDFS had previously ordered Paxos to cease issuing Binance USD stablecoins in February 2023 due to anti-money laundering concerns.
Zoom out 🔎 Paxos joins a growing cohort of cryptocurrency companies pursuing federal banking oversight. Circle, the issuer of USDC stablecoin, and Ripple have both submitted similar applications for national trust charters in recent months. Currently, Anchorage Digital remains the only cryptocurrency firm operating under a national trust bank charter, which it received in 2021.
ICYMI:
The timing of these applications aligns with significant regulatory developments in the digital asset space. President Trump signed the GENIUS Act in July 2025, establishing the first comprehensive federal framework for stablecoin regulation. The legislation represents a milestone for the cryptocurrency industry, which contributed over $245 million to pro-crypto candidates during the 2024 election cycle, according to Federal Election Commission data.
✈️ THE TAKEAWAY
What’s next? 🤔 The wave of charter applications from major cryptocurrency companies signals a fundamental shift in how digital asset firms approach regulatory compliance and market positioning. Federal banking oversight provides several strategic advantages, including simplified multi-state operations, enhanced credibility with institutional clients, and alignment with established financial regulatory frameworks. For Paxos specifically, securing a national trust charter could accelerate its growth trajectory by eliminating the need for state-by-state regulatory approvals and positioning the company as a premier infrastructure provider for traditional financial institutions entering the digital asset space. The federal designation would also likely strengthen Paxos's competitive position in serving enterprise clients such as Mastercard, Interactive Brokers, and MercadoLibre. Zooming out, stablecoin issuers becoming federally regulated entities could reshape the competitive landscape significantly. Companies with federal charters may gain preferential treatment from institutional partners and regulatory agencies, potentially creating a two-tiered market structure between federally supervised and state-regulated operators. Looking ahead, the convergence of favorable federal legislation, pro-cryptocurrency administrative policies, and industry maturation suggests that additional charter applications will likely follow. This regulatory arbitrage may pressure remaining major players to pursue similar federal oversight to maintain competitive parity.
ICYMI:
Leadership crisis at N26 😳🇩🇪
The news 🗞️ German digital banking giant N26 is experiencing significant internal turmoil as major investors are actively seeking to remove the company's co-founders from their executive roles following renewed regulatory scrutiny from German financial watchdog BaFin.
Let’s take a quick look at this.
More on this 👉 According to multiple reports, investors are negotiating an agreement that would see co-CEOs Valentin Stalf and Maximilian Tayenthal step down from operational leadership by year-end. Under the proposed timeline, Stalf would depart by September 1st, while Tayenthal would exit by December 31st. Marcus Mosen, currently serving as chair of the supervisory board, is being positioned as an interim co-chief executive to manage the transition.
The leadership crisis stems from BaFin's recent identification of fresh compliance concerns at the neobank, which threatens new sanctions just months after the regulator lifted previous growth restrictions. During a special audit conducted in the fourth quarter of last year, BaFin uncovered significant weaknesses in N26's internal control systems, processes, and overall organizational structure. The regulator has proposed issuing formal warnings to two management board members and appointing another special monitor to oversee the bank's operations.
This latest regulatory intervention represents a continuation of N26's troubled relationship with German authorities. The company has faced multiple sanctions since its 2013 launch, including a €4.25 million fine in September 2021 and customer acquisition caps that limited growth to 50,000 new accounts monthly. While these restrictions were lifted in 2024, allowing N26 to achieve its first profitable quarter, the recent compliance failures have reignited investor concerns about the founders' ability to manage regulatory relationships effectively.
Zoom out 🔎 The investor revolt is being led by backers from N26's 2021 Series E funding round, when the company raised $900 million at a €7.7 billion valuation. These investors, including Third Point Ventures and Coatue Management, were originally guaranteed a 25% annualized return on their investment. The proposed agreement would require these investors to accept reduced returns in exchange for the founders relinquishing their special voting rights, which currently provide veto power over major corporate decisions.
The timing of this internal conflict has complicated N26's fundraising efforts, with a funding round launched earlier this year being placed on hold. The company had been exploring options to enable partial exits for existing investors, but these plans have stalled amid the regulatory and leadership uncertainties.
✈️ THE TAKEAWAY
What’s next? 🤔 At the core, these developments at N26 signal broader challenges facing the European FinTech sector as regulatory environments mature and investor expectations shift toward sustainable profitability over growth at any cost. The removal of founder-CEOs from a major FinTech would represent a significant watershed moment that could influence how investors approach governance in high-growth financial technology companies. Speaking of N26 specifically, the leadership transition will likely determine whether the company can successfully navigate its compliance challenges and restore investor confidence. The appointment of Marcus Mosen as interim leadership suggests a move toward more traditional banking expertise, which may help address regulatory concerns but could potentially slow innovation initiatives that have differentiated N26 in the competitive digital banking market. The broader FinTech industry should expect increased scrutiny from regulators, particularly around anti-money laundering controls and risk management systems. Companies that fail to adequately invest in compliance infrastructure may face similar investor pressure and operational constraints.
🔎 What else I’m watching
BBVA Praised by OpenAI for ChatGPT5 Adoption 🏦 BBVA BBVA 0.00%↑ has been recognized by OpenAI as one of the first financial institutions to adopt ChatGPT5, significantly reducing the time required for technical tasks. Since May 2024, BBVA has deployed 11,000 licenses, with over 80% of users saving nearly 3 hours per week on routine tasks. The latest iteration of ChatGPT offers improvements in accuracy, speed, reasoning, and problem-solving. ICYMI:
Nuvei Expands Global Payouts with Stablecoins 🌍 Nuvei has enhanced its global money movement capabilities by integrating stablecoin rails to facilitate faster and more cost-effective cross-border payouts. This solution allows businesses to transfer fiat funds across borders with greater speed and efficiency, reducing reliance on traditional intermediaries. By leveraging blockchain technology, Nuvei enables same-day or next-day settlement, particularly benefiting emerging markets with outdated infrastructure. The expanded capabilities support various use cases, including intra-company transfers, vendor payments, global payroll, and remittances. ICYMI:
CommBank Taps OpenAI for Smarter Banking 🤖 Commonwealth Bank of Australia is teaming up with OpenAI to sharpen its AI-driven services, focusing on fraud detection, personalized customer experiences, and secure business solutions. The partnership will integrate OpenAI’s tools - including ChatGPT Enterprise - into CommBank’s operations, while rolling out employee training to boost AI literacy and responsible usage. Beyond enhancing security and customization, the collaboration aims to align AI advancements with regulatory standards, ensuring compliance as the bank scales its capabilities. By embedding OpenAI’s technology, CommBank seeks to future-proof its offerings, making AI more practical for everyday customers and businesses. ICYMI:
💸 Following the Money
Founded by Revolut and Wise alumni, blockchain-based cross-border money transfer startup Riva Money has raised a pre-seed round from Project A as well as angels from Revolut, Monzo, and JPMorgan.
South Africa's Nedbank is to acquire financial technology company iKhokha in a deal worth $94M aimed at deepening its support for small and medium-sized enterprises (SMEs).
PayPal Ventures, Coinbase Ventures, and others back crypto payments firm Mesh, pushing total funding over $130M.
👋 That’s it for today! Thank you for reading and have a relaxing Sunday! And if you enjoyed this newsletter, invite your friends and colleagues to sign up:
This is gold - thanks for another banger sir