Rain Secures $24.5M to Scale Stablecoin Card Issuing
Hey Payments Fanatic!
Stablecoins are becoming more integrated into traditional finance, with Rain securing $24.5 million in funding to expand its stablecoin-powered card issuing platform. The round, led by Norwest Venture Partners, brings new capital to support Rain’s growing role in digital payments.
Alongside the funding, Rain announced its principal membership with Visa, expanding its issuance footprint across Europe, the U.S., and Latin America, unlocking the ability to sponsor and operate card programs in over 100 countries.
Rain operates at the core of stablecoin interoperability, allowing businesses to issue physical and virtual cards linked to self-custody wallets, custodial solutions, or traditional fiat accounts. Unlike conventional crypto-linked cards, Rain’s technology enables direct stablecoin settlement without the need for prior conversion to fiat.
“This new funding allows us to increase interoperability with existing rails, expand our footprint, and invest in our stablecoin authorization and settlement infrastructure that continues to unlock growth for our partners,” said Farooq Malik, CEO and Co-Founder of Rain.
Coincidence or not, Rain has also been linked to Worldcoin’s plans for a stablecoin payment wallet, with reports suggesting a possible role in Visa’s “mini bank account” initiative. While details remain scarce, its potential involvement in Worldcoin’s project adds another layer to the evolving stablecoin payment landscape—one worth keeping an eye on.
If you’re interested in reading a bit about what’s been happening in Payments, keep scrolling!
Cheers,
INSIGHTS
Klarna's workforce has dropped 36% since May 2022, with a steady decline existing before AI adoption. This suggests a pre-IPO slimming strategy rather than AI-driven efficiency. Employees call it "Klarnageddon," viewing it as a quiet layoff process rather than redeployment.
PAYMENTS NEWS
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🇸🇦 Madfu secures Sharia certification for its BNPL solution. This certification reinforces Madfu’s commitment to providing Sharia-compliant BNPL solutions, in alignment with the Kingdom’s vision of fostering financial inclusivity through innovative FinTech services.
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GOLDEN NUGGET
Understanding 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 and 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 — by Pomelo👇
𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬
► Tokenization replaces sensitive card details with a unique, randomly generated token, ensuring that actual card data is never exposed during transactions.
𝐏𝐮𝐫𝐩𝐨𝐬𝐞 𝐨𝐟 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧
► The main goal of Tokenization is to prevent the exposure of sensitive card details, reducing the risk of fraud and unauthorized transactions.
𝐁𝐞𝐟𝐨𝐫𝐞 𝐚𝐧𝐝 𝐖𝐢𝐭𝐡 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧
𝐁𝐞𝐟𝐨𝐫𝐞 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 (𝐓𝐫𝐚𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬)
► Users enter card details (Card Number, CVV, Expiry Date).
► These details are sent to the merchant and payment processor.
► Security Concern: Hackers can intercept and steal this data.
𝐖𝐢𝐭𝐡 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 (𝐒𝐞𝐜𝐮𝐫𝐞𝐝 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬)
► Users enter card details only once, which are securely stored as a token.
► The token replaces the card number in all future transactions.
► Even if intercepted, tokens are useless outside the payment system.
► Security Benefit — No exposure of real card data.
𝐓𝐡𝐞 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐏𝐫𝐨𝐜𝐞𝐬𝐬
1️⃣ 𝐂𝐚𝐫𝐝 𝐃𝐞𝐭𝐚𝐢𝐥𝐬 𝐂𝐚𝐩𝐭𝐮𝐫𝐞𝐝
► The customer inputs their card information at checkout.
2️⃣ 𝐓𝐨𝐤𝐞𝐧 𝐆𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐨𝐧
► A unique token is created, replacing sensitive card data. There are several type of tokens — Merchant, PSP, Network Tokens etc...
3️⃣ 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐓𝐨𝐤𝐞𝐧
► The token is used instead of card details during payment.
4️⃣ 𝐒𝐞𝐜𝐮𝐫𝐞 𝐌𝐚𝐭𝐜𝐡𝐢𝐧𝐠
► Only authorized payment networks can map tokens back to the original card during settlement.
𝐔𝐬𝐞 𝐂𝐚𝐬𝐞𝐬 𝐨𝐟 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧
► 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐖𝐚𝐥𝐥𝐞𝐭𝐬 – Securely store and use cards without exposing sensitive data when making payments via phone, smartwatch, or any smart device.
► 𝐄-𝐜𝐨𝐦𝐦𝐞𝐫𝐜𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 – Reduces fraud risk by replacing real card details with a token for each transaction.
► 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐩𝐭𝐢𝐨𝐧𝐬 & 𝐑𝐞𝐜𝐮𝐫𝐫𝐢𝐧𝐠 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 – Ensures seamless and secure payments, preventing service interruptions due to card expiration or changes.
Source: Pomelo
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