Payments

Fintechs have begun offering consumers installment-lending options to pay for airfare, putting competitive pressure on banks and credit unions that rely on travelers for significant credit card volume.

European authorities have linked the operation to investment scams that predate its sale to ING in 2018.

The bank tapped Antony Stephen, former head of Amazon Payments Europe, to oversee its move into small buy now/pay later loans. It is also reportedly seeking a partnership with the e-commerce giant in the U.K.

The card network plans to use technology acquired from CipherTrace to offer compliance and risk management services to firms that handle digital assets.

The card network aims to attract more merchant customers with an account that pays a 1.1% interest rate.

The decision came prior to news of a federal investigation of PAX Technology and a raid of its Florida locations that has prompted inquiries from customers about the security of devices that they have relied on for making and receiving payments.

The card network is working with new partners such as FIS and Moneris to connect banks, fintechs and merchants on its Visa Installments Solution platform. Its goal is to provide access to a broader spectrum of consumers than these companies can reach in one-off deals, CEO Al Kelly said.

The partnership — combining one of the biggest buy now/pay later lenders with one of the major digital payment companies — gives merchants a compelling new offering that could enable Klarna to take wallet share away from traditional card issuers.

The deal pairs up two of the world’s most valuable financial technology startups.