Robinhood and Fomo Exploit Merchant Code Loophole for KYC-Free Memecoin Purchases

Fomo and Robinhood Wallet are enabling KYC-free memecoin purchases via Apple Pay and Google Pay using infrastructure from Crossmint. The transactions are intentionally coded under merchant category code 5815—typically used for digital artwork and music—rather than standard crypto asset codes. Over 68,000 first-time crypto buyers have used the Apple Pay checkout in Fomo, which raised a $75 million Series B round at a $550 million valuation. Crossmint argues the classification is legitimate, citing SEC guidance that some memecoins act as digital collectibles rather than securities. Chase has officially disputed the categorization and is opening an investigation with the Visa network over the absent crypto transaction flags. "As far as I know, we're the only game in town when it comes to that particular product that involves no KYC because of the way that we've structured it." — Fonz Olvera