The Green Sheet Online Edition
May 26, 2025 • 25:05:02
News Briefs
Zelle outage halts payments nationwide, raises reliability concerns <- click to read full story
A major Zelle outage on May 2, 2025, froze payments nationwide, disrupting transfers at major banks due to a Fiserv system failure. Millions of people couldn’t complete transactions, affecting rent, bills and payroll. Frustrated users flooded social media, while banks urged customers to try alternatives like Venmo and Cash App.
The outage spotlighted the fragility of digital payment systems and raised concerns about reliance on third-party vendors.
Experts warned that greater vendor diversification and contingency planning are needed to improve resilience. Although service resumed by late afternoon, many faced lingering delays.
As Zelle processes hundreds of billions annually through over 1,800 banks, the outage was a significant stress test that revealed systemic vulnerabilities in the growing digital payments infrastructure.
SMBs, consumers grapple with uneven economic indicators <- click to read full story
Recent reports show a mixed U.S. economic picture. SmartBiz Bank found small businesses remain loyal to banks but face funding challenges. Consumer confidence plunged in April, with The Conference Board’s index falling for the fifth straight month.
Expectations of fewer job openings surged, echoing Great Recession-era fears. Bankruptcy filings rose slightly, up 7.8 percent year-over-year, especially in western states. Still, April’s ADP report showed modest job growth, with strong hiring in construction and hospitality.
However, sectors like education lost jobs, and wage gains slowed. Economists cited an uneasy balance: decent labor numbers amid rising financial stress. The result is cautious optimism from small business owners and continued uncertainty among consumers navigating conflicting economic signals.
NY to license, supervise BNPL providers <- click to read full story
New York moved to begin licensing buy now, pay later (BNPL) lenders after federal regulators backed away from oversight. Governor Kathy Hochul included the law in the fiscal year 2026 budget, alongside other consumer protections like subscription cancellation rules and limits on overdraft fees.
The law requires BNPL companies to provide clear disclosures, dispute resolution procedures and data privacy protections. BNPL usage is expected to exceed $122 billion this year, raising concerns about overextension and hidden fees.
The Consumer Financial Protection Bureau’s 2024 push to treat BNPL like credit cards was quashed under the Trump administration. New York’s law fills that gap, though industry groups warn some language may limit access to responsible credit. Still, it signals growing state-level regulation of fintech lending.
Mastercard, MoonPay team up to support stablecoin payments <- click to read full story
Mastercard and MoonPay formed a global partnership enabling stablecoin payments using Mastercard-branded cards.
The cards convert stablecoins to fiat currency instantly and are usable at over 150 million locations, the partners stated. MoonPay’s API-driven infrastructure and crypto platform integrations will help launch stablecoin-powered products for merchants and consumers.
The partnership targets payouts for contractors, creators and gig workers, offering faster, cost-effective global transfers. Mastercard aims to extend its trusted payments network into the crypto space, while MoonPay seeks to mainstream stablecoin use.
With 20 million wallets transacting in stablecoins monthly and 120 million holding balances, demand is growing. Both companies expect the partnership to accelerate adoption and enhance connectivity between traditional finance and digital assets
BEC fraud drains $8.5 billion over three years, FBI reports <- click to read full story
The FBI’s Internet Crime Complaint Center reported that business email compromise (BEC) scams cost U.S. firms nearly $8.5 billion from 2022 to 2024.
In 2024 alone, BEC caused $2.8 billion in losses. BEC attacks spoof emails, often via vendor impersonation, to trick employees into wiring money to fraudsters.
Recovery success dropped: only 22 percent of firms reclaimed most stolen funds, down from 41 percent in 2023. Wire transfers remain top targets.
Nacha’s new rules, effective in 2026, aim to improve fraud detection and recovery in ACH payments. Experts stressed prevention, including dual approvals and vendor callbacks. As BEC evolves, coordinated tech, policy, and training are essential. 
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