Community Federal Savings Bank Partners with PayFacto to Launch Merchant Acquiring Division
On December 3, 2020, Community Federal Savings Bank (CFSB), a New York-based federally chartered bank (Member FDIC), announced a strategic partnership with Canadian non-bank payment processor PayFacto Payments to launch a new merchant acquiring division. CFSB contributes its established expertise in payment processing sponsorships, card issuance (debit, gift, prepaid), and white-label banking solutions for fintechs and global payment providers. PayFacto brings its scalable payment solutions serving over 30,000 merchants, with capabilities in both card-present and card-not-present processing, bolstered by US expansions through acquisitions of Maitre'D and Veloce.
The collaboration is designed to deliver customized merchant acquiring services targeting emerging sectors. This move expands CFSB's BaaS footprint by adding merchant acquiring to its suite of fintech partnership offerings. No specific financial terms were disclosed as part of the announcement.
The partnership reflects the broader trend of community banks leveraging fintech partnerships to expand their service capabilities and reach.
- Demonstrates community banks actively building BaaS capabilities through fintech partnerships to compete in merchant acquiring
- Signals cross-border fintech expansion as Canadian payment processors seek US bank sponsors to enter the market