CFPB Backtracks on BNPL Guidance; Indiana Passes EWA Law; eToro IPO
Cole Gottlieb, Research Analyst
The Fed acknowledges rising uncertainty, holds rates steady. Indiana passes EWA law. CFPB backtracks on CFPB guidance. Visa invests in BVNK. SimpleClosure raises Series A. Upstart partners with Walmart’s OnePay. eToro presses ahead with IPO.
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Fed Acknowledges Rising Uncertainty
The Fed held rates steady at last week’s FOMC meeting, as was widely expected to be the case. Fed officials pointed to rising uncertainty about the economy, driven in part by President Trump’s on again, off again approach to tariffs, among other potential challenges. Officials warned of the potential for a stagflationary scenario, in which prices and unemployment rise. Such a situation puts the Fed in the bind of having to choose which part of its dual mandate to follow: price stability or full employment. The Fed acknowledged the challenge in a statement, saying, “Uncertainty about the economic outlook has increased further. The committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”
Indiana Passes EWA Law
Indiana passed legislation introducing licensing requirements for earned wage access providers that operate in the state. The move follows similar legislation recently passed in Nevada and Wisconsin. The Indiana Earned Wage Access Act requires EWA providers to become licensed in the state, renew their license annually, and clearly disclose that any tips are optional. The law further requires providers to clearly disclose at least one option available to consumers at no cost. Providers are also prohibited from accepting payment of any outstanding fees, tips, or donations via credit card. The measure was well received by industry, with the American Fintech Council praising the law, saying that it “provides a clear and consumer-focused regulatory framework for EWA services in the state.” EWA provider DailyPay, which is in the midst of a lawsuit with the New York attorney general over its product structure and business practices, said the Indiana legislation is a “regulatory achievement.”
CFPB Backtracks on BNPL Guidance
The CFPB announced last week in a blog post that it will not prioritize enforcement actions against BNPL providers related to the Truth in Lending Act. Under former Director Rohit Chopra, the CFPB passed an interpretive rule declaring BNPL firms to be credit card providers for the purposes of certain applicable provisions of TILA. The effort was intended to ensure consumers using BNPL could dispute charges and obtain refunds when returning items purchased with BNPL. According to the brief blog post, the CFPB is also considering rescinding the interpretive rule, something it has previously suggested it would do in response to legal challenges to the interpretive rule.
Visa Invests in BVNK
Payments behemoth Visa is doubling down on stablecoins. The company made a strategic investment in stablecoin infrastructure platform BVNK. The companies did not disclose the size or terms of the investment. The news comes less than six months after BVNK announced its $50Mn Series B fundraise. Visa’s head of growth products and partnerships Rubail Birwadker said of the deal, “We’re proud to support BVNK as they help accelerate global adoption of stablecoin payments. Stablecoins are fast becoming a part of global payment flows, and Visa invests in new technologies and builders like BVNK, staying at the forefront of what’s next in commerce to better serve our clients and partners.”
SimpleClosure Raises Series A
Last year, cap table management startup Carta announced and shut down a capability for winding down startups. The offering, dubbed Carta Conclusions, aimed to simplify the process of shutting down an unsuccessful company. Now, Carta has participated in the $15Mn Series A of a company doing the same thing, SimpleClosure. The new funding brings SimpleClosure’s total capital raised to date to $20.5Mn. The Series A was led by TTV Capital, with participation from existing investors Anthemis, Vera Equity, and Infinity Ventures SimpleClosure cofounder Dori Yona said, “The reality is that 90% of startups don’t make it, and shutting down remains the unspoken but necessary part of entrepreneurship. We hope companies never need us, but if they do, we’re here to help them do it the right way.”
Upstart Partners with Walmart’s OnePay
AI-powered lending network Upstart revealed a new partnership in an 8-K filing: OnePay, the neobank majority-owned by Walmart. The brief filing noted that Upstart has entered into a one-year strategic partnership with OnePay, which it expects to enable Upstart to market products to Walmart’s customer base. Upstart and OnePay will collaborate on cobranded offerings, including direct mail campaigns, the 8-K said. Upstart does not expect the partnership to have a material impact on its 2025 results, according to the filing.
eToro Presses Ahead with IPO
The tumult in public markets has caused a number of firms to pull or delay their IPOs. But stock and crypto trading app eToro is plowing ahead, according to filings the company made last week. eToro and its investors are offering 10Mn shares, with a price target of $46-$50 per share, per paperwork filed with the SEC. At the high end of that range, eToro would have a market cap of about $4Bn. eToro had previously delayed the offering after the announcement of President Trump’s “liberation day” tariffs. eToro notched a $3.5Bn valuation for its last known funding round in 2023.
Employer.com Acquires MainStreet
Workforce management company Employer.com has made yet another acquisition, snapping up MainStreet. MainStreet, founded in 2019, helps businesses identify research and development tax credits they may qualify for. MainStreet hit $15Mn in revenue in 2021, but struggled to break out, and laid off about a third of its staff in 2022. Terms of the acquisition weren’t disclosed.
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