The Block reported that Robinhood Wallet and social trading app Fomo have introduced a feature that allows users to purchase meme coins with credit cards via Apple Pay and Google Pay, and that no separate KYC (Know Your Customer) procedure is required for payment. In response, Chase expressed concerns about circumventing card company cryptocurrency regulations and stated that it is investigating the issue. This feature is based on Crossmint's Token Checkout, which processes payment systems and allows users to fund on-chain purchases with a single tap. Transactions are processed on the Robinhood Chain network and are categorized under the digital goods media merchant category code. This category typically includes items such as audiobooks and digital movies. Since it is classified as a digital good rather than a cash advance or a financial product purchase, it is processed the same as a regular retail transaction. This means that some credit cards offer points, miles, or cashback when purchasing meme coins. Credit card networks have traditionally treated cryptocurrency purchases differently from regular retail purchases, and Chase is reportedly reviewing whether the "digital goods media" classification accurately reflects the actual purchase history. The New York State Attorney General's Office also stated that it is aware of and reviewing the matter.
