Good morning, and welcome to Protocol Fintech. This Monday: Earned wage access comes under fire, Capital One goes shopping for fintechs, and Zelle scams find a simple explanation.

Off the chain

For sale: one neobank, never used. American Challenger and Patriot National Bank called off their merger in the latest sign of trouble in the neobank business. American Challenger is now hawking its cost-saving technology and a catchy brand name, Cache.

Fast money

Federal and state regulators are taking a closer look at how to regulate a fast-growing fintech field, earned wage access. These products allow employees to obtain pay they have earned ahead of their regular payday. As the industry has grown, so has the debate about whether the products should be considered extensions of credit and regulated accordingly.

The Consumer Financial Protection Bureau is on the case. Tucked away in a recent announcement revoking a sandbox letter for EWA provider Payactiv was a warning that the agency would soon “issue further guidance.”

• The termination of Payactiv's sandbox letter, which gave the company regulatory protection from key lending rules, came at the company's request. The firm said it wanted to make changes to its business strategy without incurring a lengthy review from the CFPB, though the CFPB had already told Payactiv it was considering terminating the letter as a result of public statements from the company “wrongly suggesting a CFPB endorsement.” A press release and a couple...

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