Indonesia expanded its domestically processed credit-card scheme to consumers and businesses through QRIS. In Singapore, Trust linked card rewards to investments, while GXS used the Grab and Singtel ecosystems to support card distribution.

Klarna returned to profit but cut its 2026 outlook amid weaker German retail spending. In Brazil, Nubank topped $1 billion in quarterly profit, while StoneCo’s rapid credit growth was accompanied by rising delinquencies.

Read more on the week’s key developments:

1. Bank Indonesia and 8 banks launch retail KKI through QRIS

Bank Indonesia launched the retail expansion of the Indonesian Credit Card, or KKI, on 17 August, extending the product beyond government users to consumers and businesses. Eight banks began issuing digital KKI at launch, comprising Bank Central Asia, Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, CIMB Niaga, PermataBank, Bank Mega and Bank Syariah Indonesia (BSI). BSI’s offering is sharia-compliant. KKI can initially fund QRIS transactions, with physical-card and online-payment capabilities expected to follow.

The integration places KKI within a network used by 65.77 million consumers and accepted by 44.86 million merchants. QRIS processed 12.55 billion transactions worth IDR 1.12 quadrillion ($67.8 billion) in the first half of 2026. KKI allows banks to extend credit through this established network while retaining transaction processing on domestic infrastructure. Adoption will depend on whether they can persuade consumers to shift spending from existing cards or other QRIS funding sources.

2. Klarna posts quarterly profit but cuts 2026 outlook

Klarna Group reported on 18 August that second-quarter revenue rose 27% year on year to $1.04 billion, while gross merchandise volume (GMV) increased 18% to $36.6 billion. The group recorded net profit of $9 million, compared with a $53 million loss a year earlier. It cut its full-year GMV forecast to $149 billion–$151 billion from more than $155 billion and lowered its revenue outlook to $4.08 billion–$4.16 billion from $4.34 billion.

Weak retail spending in Germany drove the guidance cut, although Klarna is generating more revenue outside transaction-led buy now, pay later activity. Average revenue per active consumer rose 24% year on year, US GMV grew 27% and transaction margin dollars increased 42%. Paying subscribers reached two million as subscription revenue rose more than 600%, although Klarna has not disclosed subscriptions’ contribution to group revenue.

3. Bank of America takes 26.5% stake in India’s Jio Credit for $693 million

Bank of America agreed on 12 August to acquire an initial 26.5% stake in India’s Jio Credit for INR 66.13 billion ($693 million). The agreement also includes warrants worth up to INR 116.55 billion ($1.22 billion), which could raise its holding to 49.9% within 18 months. If fully exercised, BofA’s total investment would reach INR 182.68 billion ($1.92 billion).

The investment gives BofA a significant position in a rapidly growing Indian non-bank lender that built INR 306.67 billion ($3.2 billion) in assets under management within two years. Upon completion, BofA and Jio Financial Services will have equal board representation, giving BofA influence over governance, risk management and technology despite its minority stake. Jio Credit’s existing management will continue running the business, which will remain consolidated in Jio Financial’s accounts.

4. Nubank tops $1 billion quarterly profit as credit portfolio grows 37%

Brazilian digital bank Nubank reported on 13 August that second-quarter net profit exceeded $1 billion for the first time, rising 49% year on year to $1.06 billion on a foreign-exchange-neutral basis. Revenue increased 39% to $5.88 billion, while its credit portfolio grew 37% to $39.4 billion. Risk-adjusted net interest margin rose 290 basis points from the previous quarter to 12.4%.

Margin growth reflected higher lending, a shift toward unsecured credit and a 9% quarterly decline in credit costs. Unsecured loans grew 45% year on year as Nubank expanded into higher-risk, higher-return segments. Early-stage delinquencies fell to 4.8%, while over-90-day delinquencies rose to 6.9%. Chief Financial Officer Rob Livingston attributed the quarterly increase to seasonal migration, while acknowledging that the longer-term rise reflects changes in portfolio mix. Provisions covered 244% of over-90-day delinquent balances.

5. StoneCo more than doubles credit portfolio as asset quality deteriorates

Brazil-focused fintech StoneCo reported on 13 August that its credit portfolio reached BRL 3.8 billion ($729 million) in the second quarter, more than double the year-earlier level and up 16% from the previous quarter. Loans 15–90 days overdue rose to 6.0%, while 90+ day delinquencies reached 8.6%. Provision expenses reached BRL 188 million ($36 million), with cost of risk remaining elevated at 21.5%.

Pressure was concentrated in larger-ticket merchant loans, with some defaulting exposures exceeding BRL 10 million ($1.92 million). However, its June automated-lending cohort recorded the lowest first-payment default rate in 12 months after StoneCo tightened underwriting. The company is reducing maximum loan sizes and shifting toward government-backed and better-rated borrowers, which it expects to lower cost of risk to the high teens by year-end. Improved newer vintages will need to offset losses from older and larger exposures.

6. Australia’s Commonwealth Bank overhauls Yello rewards across the banking relationship

Australia’s Commonwealth Bank announced on 18 August an overhaul of CommBank Yello, with a new points-based programme taking effect from 1 October. More than nine million customers participate in Yello. They will earn points through eligible home loans, savings, cards and insurance, as well as selected spending offers, with redemption options spanning cash, travel, gift cards and airline programmes.

The launch coincides with the Reserve Bank of Australia reducing the consumer credit-card interchange cap from 0.80% to 0.30% and ending card surcharging on 1 October. By awarding points across banking products, CBA is shifting Yello from fixed cashback benefits toward relationship-based rewards that can support retention and cross-selling as card economics tighten. CBA says customers have received more than AUD 240 million ($156 million) in benefits since 2023, but has not disclosed programme costs or its effect on retention and revenue.

7. Trust Bank launches credit card offering rewards in stocks

Singapore digital bank Trust launched the Freedom credit card on 13 August, rebranding its Cashback Card and introducing three reward options, including Stockback. Customers can earn 3% Stockback on eligible local and overseas spending until end-2026. Rewards accumulate until SGD 10 ($7.83), when they are automatically invested in a customer-selected US stock or ETF from 50 eligible investments. The card also offers unlimited cashback and category-based bonus cashback.

Stockback links card spending with TrustInvest, giving the bank a route to increase engagement across both payments and investments. However, the reward is capped at SGD 500 ($392) per quarter and will fall to 2% on local spending and 0.5% on overseas spending from January 2027. Continued use after the introductory rate ends will indicate whether stock rewards can drive sustained card and investment activity.

8. GXS Bank launches credit card built around Grab and Singtel ecosystems

Singapore digital bank GXS Bank, backed by Grab and Singtel, launched the GXS Credit Card on 17 August after a month-long beta with more than 1,000 customers. The Visa card offers up to 10% in GrabCoins on eligible Grab spending and 1.75% cashback on qualifying local and Singtel transactions, with general cashback requiring SGD 500 ($392) in monthly spending. Customers can apply through the Grab app, while the card shares a FlexiCredit limit with cash borrowing.

More than 90% of beta participants used the card for Grab or Singtel transactions, although the small early-adopter sample does not establish broader demand. Post-launch issuance, non-ecosystem spending and credit performance will show whether the card deepens GXS banking relationships or mainly rewards activity within its shareholders’ platforms.

9. Citi agrees to acquire Kard to expand merchant-funded card rewards

Citi announced on 13 August that it will acquire Kard Financial, a commerce-media and rewards platform that enables banks and fintechs to deliver personalised merchant offers and cashback. Financial terms were not disclosed, and Citi said the transaction would not be material to its financial results. Kard said in October 2025 that its network reached tens of millions of consumers and processed more than $10 billion in transactions each month.

The acquisition advances Citi’s commerce-ecosystem strategy by combining offer delivery with verified transaction data and sales attribution. Kard’s merchant relationships and machine-learning tools are intended to increase the share of rewards funded by merchants while improving personalisation. Citi has not disclosed expected cost savings or targets for card spending and retention, so the commercial value will depend on adoption across its card base and the incremental spending generated.

10. NOBA Bank posts above-target loan growth as credit losses improve

Sweden-based NOBA Bank Group reported on 18 August that second-quarter organic loan growth reached 11% year on year in local currencies, above its medium-term target of at least 10%. Adjusted operating profit from core operations rose 21% to SEK 1.5 billion ($158 million), while underlying net interest margin remained stable at 8.2%. Cost of risk fell to 2.5% from 2.9% a year earlier, marking its ninth consecutive quarter of year-on-year improvement, while the CET1 ratio stood at 13.4%.

NOBA is growing above target while margins hold and credit losses improve. However, its CET1 ratio is near the lower end of its 13%–15% target range, leaving limited headroom for faster balance-sheet expansion while the bank maintains a 40% payout target. Sustaining both loan growth and distributions will depend on continued internal capital generation and credit performance.

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