Central Payments, a developer of the Open FinTech API Marketplace, has closed a $30m growth equity round.
This deal spins the company out from the Central Bank of Kansas City and will support its growth trajectory.
Castle Creek Capital served as the lead investor, with commitments also coming from Launchpad Capital.
Founded in 2014, Central Payments develops payments technology and issuing solutions for FinTech and embedded finance businesses. Its API marketplace is a banking-as-a-service platform helping banks with embedded issuing capabilities.
It offers a host of different products, including virtual accounts, debit cards, prepaid cards, payroll, mobile deposit, savings accounts, real-time account validation, NFC, cashback rewards, bill payments, ACH, real-time payments, remittances, budgeting, and much more.
Central Payments founder and president Trent Sorbe said, “Since inception, we have remained steadfast in our belief that new technology and the stability of a bank charter create opportunity for banks in FinTech and embedded finance, while others may have perceived a threat. This raise will enable us to continue trailblazing with our Technology | Charter | Choice℠ approach.”
This investment is the inaugural investment for Castle Creek Launchpad Fund I, a $90m investment vehicle that was raised from 34 community banks.
Launchpad Capital founder Ryan Gilbert said, “We’re backing innovators and new financial technologies. Central Payments’ origin inside a community bank and its positioning at the intersection of banking, payments and FinTech made it an ideal first investment for our new fund.”
Later this year, Central Payments will expand its FinTech accelerator, which is aimed at early-stage financial technology startups.
Earlier in the year, digital banking API developer Apiture closed its funding round on $29m. The capital injection, which was led by Live Oak Bank, will help the company boost its sales and marketing efforts and deepen its product development initiatives.
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