US fintech PrizePool reportedly winding down consumer app amid acquisition
US-based fintech start-up PrizePool, which combines traditional savings accounts with lottery-like rewards, is reportedly winding down its consumer app as it undergoes an acquisition.
PrizePool is reportedly winding down its consumer app
According to Reddit sources cited by Fintech Business Weekly, which first reported the news, the San Mateo-based company has recently informed customers of its plans to wind down its app.
An email reportedly sent to customers and shared on Reddit states that PrizePool stopped accepting new sign-ups from 23 August.
The email also says that PrizePool has marked 19 September as the last day for user-initiated withdrawals, with accounts set to close four days later on 23 September.
Customers have been encouraged to withdraw funds from accounts prior to this date, with any remaining funds to be pushed back to linked accounts following 23 September.
“We are letting you know that PrizePool is being acquired. Unfortunately, this means we are winding down the PrizePool app and your PrizePool account will be closed on September 23rd,” the email states.
It’s unclear exactly which entity has come forward to acquire the company, and PrizePool did not respond to FinTech Futures‘ request for comment.
Founded in 2019 by former Apple managers Franklyn Chien and Joe Woo and powered by a $10 million Series A closed in 2021, PrizePool operates a consumer app in the US which merges “the thrill of a sweepstakes (like a no-risk lottery) with the benefits of savings”, as stated on its website.
The app combines account spending with a rewards function, which offers customers the chance to win up to 100% cashback on transactions.
