Many younger prospective homebuyers have been waiting out mortgage rates in hopes of saving money, contributing to plateaued demand for new homes. However, creative or atypical mortgage products could spur demand. In this challenging economic environment, FIs have an opportunity to gain long-term loyalty by offering products that allow customers to realize their homeownership dreams. These products acknowledge the uniqueness of consumers’ individual financial situations. FIs should move beyond a one-size-fits-all approach and develop a full suite of specialized loan products. FIs can build these products in-house or partner with fintechs and other lenders to get them to market faster.

MoneyGram launched a mobile app that uses stablecoins to make cross-border payments easier and cheaper. Investment in crypto services can help MoneyGram secure loyal patrons as its rivals also offer stablecoin-backed cross border payments.

Gen Z’s recent banking and payments behavior shows they are integrating cryptocurrency into their normal banking habits. Their widespread adoption of cryptocurrency for transactions and investment signals a critical challenge for traditional banks. Meanwhile, fintechs and other nontraditional platforms are targeting these younger customers with in-demand products. Banks must embrace this shift by offering crypto-related products and services and integrating them seamlessly into core offerings. This presents an opportunity for banks to innovate, build new revenue streams, and solidify their position as the central financial hub for the next generation of consumers.

The news: U.S. Bancorp has restarted its digital asset custody services for institutional clients after the Securities and Exchange Commission (SEC) rolled back a rule requiring financial institutions (FIs) to hold capital for cryptocurrency-related activities, per Bloomberg. Our take: This development isn’t surprising given recent pro-crypto regulatory changes. A major FI like U.S. Bancorp diving back in shows there's a real business imperative too, driven by institutional demand. While crypto-native firms like Coinbase have dominated the custody space, the entry of banking giants will heighten competition in the market. While custodying is less risky than holding assets on the balance sheet, it still exposes banks to regulatory and reputational challenges. Even so, these offerings give banks a way to tap younger investors who have been eager for alternative products.

The news: Crypto exchange Gemini launched an XRP edition of the Gemini credit card in collaboration with Ripple, per a press release. Cardholders will receive XRP as a reward for everyday spend. Our take: We forecast the amount of US crypto payment users remains low, at 1.3% of the population. However, the share of people who use crypto at all is more than seven times as large—suggesting Gemini’s new card could attract a larger base than cards designed around using crypto at checkout.

The strategy: Tech platform Bluwhale has released a model for a scoring system that calculates real-time credit signals from both fiat and crypto assets, per Cointelegraph. Why this matters: We called for FIs to consider incorporating crypto assets into lending products in our report “Home Lending Trends 2025.” Here’s why: Cryptocurrency is becoming more mainstream, with big banks increasingly incorporating digital currencies into everyday solutions. Younger consumers are more interested in alternative investments including crypto than their older counterparts. Our take: FIs aren’t currently offering Bluewhale’s system, but the model still illustrates how creditworthiness scoring could look in the future. FIs that include financial activity that demonstrates strength but doesn’t appear on a traditional credit report can assess loan requests more accurately—and potentially approve more customers.

The news: Western Union will acquire International Money Express (Intermex) in a deal with a total equity and enterprise value of $500 million, per a press release. Our take: Increasing its retail footprint in the US positions can help Western Union capture more remittance outflow from the US, which we forecast to hit $92.58 billion this year.

The news: President Trump recently signed an executive order to allow Americans to invest 401(k) retirement savings in private equity, cryptocurrency, real estate, and other alternative assets, per NBC. The administration believes this will give retirement savers more opportunities for potentially higher returns. Our take: This may excite younger consumers in particular, as they generally are more interested in alternative investments. But critics and financial experts warn that these new options come with higher risks and costs than traditional 401(k)s. The traditional banking model centers on stability, trust, and relatively conservative financial products. In addition to new opportunities, introducing high-risk, alternative assets into retirement accounts creates significant challenges for the banking sector.

The news: Marqeta’s total processing volume (TPV) hit $91 billion in Q2, a 29% YoY increase. Our take: Marqeta’s success with buy now, pay later could help it finally wean off its dependence on Block, which still accounts for 46% of its business. With planned expansions into Europe, Marqeta has the opportunity to put more distance between it and its competitors by leaning into solutions for alternate financing and currencies, like BNPL and crypto.

The news: JPMorgan Chase and Coinbase partnered to offer Chase's customers new ways to access crypto. This fall, customers will be able to link Coinbase directly to their bank accounts, buy crypto with Chase credit cards, and convert rewards points to USDC, per a press release. Why this matters: This partnership is a big step toward bridging the gap between traditional finance and crypto. By letting customers use their credit cards to buy crypto or redeem their Chase Ultimate Rewards points for USDC, the companies could accelerate crypto adoption. It’s also another salvo from JPMorgan against data aggregators and open banking firms after the bank announced that it would charge these companies to access customer data—particularly around payments. JPMorgan is integrating directly with Coinbase rather than using APIs from a company like Plaid.

The news: PayPal will enable Pay with Crypto in an attempt to streamline cross-border payments for US merchants through its intricate network of digital wallet and cryptocurrency integrations in the coming weeks. In the meantime, US consumers will have to break age-old payment habits: Only 8% of crypto owners who use cryptocurrency to purchase goods and services do so daily; most only use it up to four times a year. Building these consumer payment preferences will take time, so PayPal should remain patient.

The news: JPMorgan is reportedly considering offering loans directly backed by clients' Bitcoin and other crypto assets, per Bitcoin Magazine. This would be a first for the big bank, moving beyond accepting only Bitcoin exchange-traded funds as collateral. Our take: As regulations around crypto continue to ease, more financial institutions (FIs) will explore incorporating digital currencies into their offerings. While crypto may not be the best path for all FIs, JPMorgan's move to consider Bitcoin-backed lending signifies a critical inflection point in traditional finance. Banks have seen crypto firms encroach on their territory as they seek banking charters. But an expansion of crypto offerings by traditional banks would allow them to strike back with more-comprehensive lending products their competitors may not yet be able to offer.

The news: We’ve recently covered a fintech, a stablecoin issuer, an auto manufacturer, foreign banks, and credit unions that are considering, applying for, or in the process of acquiring US banking licenses. Some have already succeeded, inspiring others to follow suit. And according to the Office of the Comptroller of the Currency, banking charter applications have increased 70% since 2024. Our take: We predict traditional banks will push for regulatory changes that prevent the steady inflow of new banks that haven’t had to follow the more stringent requirements of the past. Banks’ long-standing customer relationships will be a central pillar of their defense strategy. Banks must increasingly leverage their established trust, extensive branch networks, and comprehensive product suites to highlight their stability and one-stop-shop convenience compared to specialized fintechs or more limited new entrants.

The news: Deutsche Bank plans to launch a digital asset custody service next year, which would allow clients to securely store cryptocurrencies and tokenized assets. It initially announced its custody plans in 2022. Our take: These two German banks’ announcements signal growing confidence among European financial institutions in embracing digital assets. We expect more of them to follow suit in the coming year.The trend could also pick up pace in the US amid a favorable environment: Several major US banks already offer crypto asset services, but recent developments like the withdrawal of previous cautionary guidance by the Office of the Comptroller of the Currency could spur more major US banks to jump in.

The news: SoFi will relaunch its crypto investing platform and will introduce self-serve international money transfers powered by blockchain technology by year’s end, per a press release. Our take: As customers warm to crypto transactions, remittance providers stand to score valuable volume—and customer loyalty—if they style their businesses around what remittance senders want most: cheap, convent, and fast transactions.

The news: Shopify partnered with Coinbase and Stripe so customers can pay with the USDC stablecoin at checkout. Our take: Coinbase is the biggest winner in this partnership. Cryptocurrency needs to gain traction with a wide merchant network to accelerate its use, and Shopify represents a huge score for Base.

Tariff uncertainty, billion-dollar merger and acquisition deals, and a jump in social commerce will create new dynamics in the payments industry in H2 2025. Burgeoning tech like agentic AI and stablecoins will further shake up the space.

Sixty percent of current and prospective homeowners are unsure whether it’s a good time to buy a home—the highest uncertainty in three years, per Bank of America’s report. Meanwhile, 75% of prospective buyers are waiting for mortgage rates to drop, up from 62% in 2023. Younger generations, especially Gen Z and millennials, are delaying homeownership, with ownership rates flatlining. Stagnant rental prices and economic uncertainty add to the hesitation. Lenders must modernize offerings, streamline processes, and explore alternative financing like crypto and peer-to-peer loans to convert hesitant buyers when the market improves.

The global payments industry will be a $2.3 trillion revenue opportunity in 2028. But shifting business models, new technologies, and alternative payment methods are changing how key card players compete for a share of this revenue.