Banking Technology Magazine May 2024 issue out now
Cover story: PLASTIC MEASURES – Banking must follow a more sustainable path.
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Welcome to the May issue of Banking Technology. With plenty of ups and downs in the fintech space over the last month, our editorial team has been busy.
In the US, Banking-as-a-Service (BaaS) continues to find itself in the hot seat. BaaS platform Synapse has been sold to payment processor TabaPay. The deal follows a turbulent year for Synapse that included client departures, vast layoffs and filing a Chapter 11 voluntary bankruptcy petition.
Ten-year-old Synapse is among the growing number of fellow BaaS and embedded finance providers to face similar circumstances and undergo a distressed acquisition. Last year, Bond was picked up by FIS, a banking and payment technology heavyweight in the US, while Rize Money went to Fifth Third Bancorp, a financial institution whose history dates back to mid-1800s.
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California-based Treasury Prime has recently made a strategic pivot – from selling to fintechs to selling directly to banks – which led to the layoffs of around half of its roughly 100 employees.
Meanwhile, fellow Californian BaaS vendor Solid is understood to be buying back the full stake from its investor FTV Capital, at a 56% discount, as a result of an agreed settlement. The two firms were embroiled in a dispute following the latter’s $61 million contribution to Solid’s Series B funding round in 2022.
FTV took Solid to court the following year, accusing it of invoicing and recording revenue from “customers that were not actually using its services or lacked the ability or intention to pay”. Solid rejected the allegations and promptly countersued, claiming that FTV had carried out a comprehensive due diligence and was “resorting to made-up claims of fraud, threats and strong-armed tactics to try to get its money back”.
Watch this space. For more BaaS news stories in the US and around the world, head over to the dedicated news section on our website
