Major Fintech Giants Supercharge Lobbying Efforts Ahead of 2024

In an unprecedented move, fintech companies significantly increased their lobbying efforts during the first half of 2024. This uptick spans a variety of sectors within fintech, focusing on issues from peer-to-peer money transfers to the emerging space of neobanks.

Prominent among these entities is PayPal Inc., which spent over $800,000 on lobbying activities, surpassing its previous years’ spending in the same period. Block Inc., operator of CashApp, has taken this trend further, investing nearly $1 million—its highest spending to date. A 2022 survey indicated considerable popularity for such services, with over half of young adults aged 18-25 using them.

Meanwhile, Early Warning Services, the company behind Zelle, reported $180,000 in lobbying expenditures, a record for the first half of any year. The number of lobbyists deployed also reached an all-time high, signaling an aggressive pursuit of relevant legislative influence.

These companies are showing varied interests in government affairs. PayPal, for instance, focused on tax-related matters, including debates around a $600 reporting threshold for transactions and lobbying for the permanence of certain tax deductions. Block Inc. has also targeted the Tax Relief for American Families and Workers Act, while exploring additional tech-related issues, such as cryptocurrency regulation.

On a different note, Early Warning Services has adopted a broader approach, discussing various issues tied to payment systems and fraud management, rather than pinpointing specific bills. This strategy differentiates its lobbying focus from that of its peers.

In the lending arena, companies that provide paycheck advance services ramped up their lobbying, notably EarnIn, which allocated $300,000 in the first half of 2024—equaling its total expenditure for all of 2023. This aligns with the firm’s focus on advocating for the Earned Wage Access Consumer Protection Act, which aims for stricter lending standards and consumer protections.

Other payday advance platforms, such as MoneyLion, have also entered the lobbying landscape, committing $70,000 each quarter since late 2023. Although not detailing specific legislative ties, MoneyLion reported a general interest in legislation related to consumer financial services.

Chime Financial, a leading neobank, has recorded the most substantial increase in lobbying activity, shelling out over $1 million in the first half of 2024. This figure eclipses its annual totals from previous years, and Chime is now employing a record number of 23 lobbyists. While they are predominantly addressing general issues, some are working directly on the Earned Wage Access Consumer Protection Act.

While other neobanks like Varo Bank have started lobbying too, their expenditures remain modest. Varo’s focus has been on issues surrounding digital banking without engaging in specifics.

As the current Congress inches toward its adjournment, many of these legislative efforts remain uncertain. With several bills still in committee, the final outcomes may not be known until the 119th Congress convenes.