Tuum and Marqeta announced a partnership to deliver a pre-integrated solution combining core banking and card program capabilities. The collaboration targets European banks and fintechs seeking to launch modern digital payment services faster. By combining Tuum's cloud-native core banking platform with Marqeta's card issuing technology, the partnership reduces integration complexity for clients.
Treasury Prime announced it joined the Banking-as-a-Service Association, a group representing over 80% of U.S. BaaS sponsor banks. The membership aligns the embedded banking software platform with an industry network promoting compliant banking services, best practices, and access for underbanked communities. The BaaS Association unites banks, fintechs, and tech providers to advance BaaS strategies.
Fortis expanded its embedded payments platform into Canada, marking its first international expansion, and acquired SmartPay, an embedded payments provider. The company also launched enhanced funding and settlement capabilities for marketplaces and software platforms. This move broadens Fortis's reach in the embedded payments space beyond the U.S.
Backbase acquired UK-based digital wealth platform Nucoro in mid-June 2023 for undisclosed terms. The deal adds robo-advisory and investment management capabilities to Backbase's engagement banking platform, enabling banks to offer embedded investment services to their customers.
Wisetack announced a partnership with Citizens to expand its embedded financing platform for in-person services. The integration embeds pay-over-time options for home services, dental care, medical procedures, and car repair through APIs in merchant software. This partnership extends Citizens' reach into embedded lending via a fintech intermediary.
Intesa Sanpaolo presented Isybank, its new cloud-native digital bank with multi-currency and multi-national capabilities. The mobile-first platform offers three account tiers, instant payments, salary advances, and recycled-material cards. Isybank represents a major embedded banking initiative from one of Italy's largest banking groups.
American Express and Plaid initiated an API-based data sharing integration to enhance secure customer connections to financial apps. The partnership improves digital banking security and transparency for Amex cardholders using third-party fintech applications.
FIS completed the acquisition of Bond, a Banking-as-a-Service startup founded in 2019, for an undisclosed sum. Bond had previously raised $42 million in total funding and was valued at $182 million during its 2020 Series A. FIS described the deal as a strategic move to close a gap in its embedded finance capabilities. The acquisition brings experienced BaaS professionals into FIS's organization.
Entities: FIS · Bond · Coatue Management · Mastercard · Goldman Sachs · Canaan Partners · B Capital Group
Novo announced an integration with Gusto, combining banking and payroll services through an embedded payroll solution for small businesses. The partnership allows Novo's SMB customers to manage banking and payroll in a unified experience. This reflects the trend of neobanks embedding adjacent financial services to deepen customer relationships.
The FDIC, OCC, and Federal Reserve jointly finalized guidance on third-party risk management, published June 6, 2023. The guidance directly impacts BaaS banks and their fintech partnerships by establishing unified expectations for oversight of third-party relationships. It represents the most significant US regulatory framework development for embedded finance and BaaS in 2023.
Tap delivered a white-label Mastercard-powered prepaid card solution to Bitfinex, enabling the crypto exchange to offer branded payment cards to its users. The partnership demonstrates how card-issuing-as-a-service platforms enable crypto companies to embed traditional payment products. It highlights growing convergence between crypto platforms and embedded finance.
Square, a subsidiary of Block Inc., began testing a credit card product aimed at its merchant sellers, expanding its embedded finance offering beyond payments into lending. The product is developed in partnership with American Express. This represents Square's deepening push into embedded financial services for SMEs.
Griffin, a UK-based Banking-as-a-Service startup, raised $13.5 million in Series A funding led by MassMutual Ventures. The round included participation from Seedcamp, Notion Capital, and EQT Ventures. Griffin had raised $35.7 million cumulatively by that point. The funding supports Griffin's efforts to build a full-stack BaaS platform.
Knight Fintech's co-lending middleware platform reached a milestone of facilitating over 100,000 loans monthly and managing over Rs 12,000 crore in assets. The platform is used by over 40% of large Indian financial institutions, reducing integration time from 8-12 months to just 3 weeks.
The Bancorp Bank extended its private-label banking services agreement with Chime Financial, renewing its role in holding Chime member deposits and supporting FDIC-insured services. This continuation of one of the largest BaaS relationships in the U.S. underscores the ongoing importance of sponsor bank partnerships for leading neobanks. The deal reinforces The Bancorp's position as a top-tier BaaS provider.
Nymbus raised $70 million in Series D funding led by Insight Partners, with participation from ConnectOne Bank, PeoplesBank, The Banc Funds Company, and Mendon Venture Partners. The banking technology provider will use the funds to scale its transaction processing and commercial banking platform. Nymbus offers modern core systems and BaaS capabilities to banks and credit unions.
Entities: Nymbus · Insight Partners · ConnectOne Bank · PeoplesBank · The Banc Funds Company · Mendon Venture Partners
B2B payments fintech Plastiq filed for bankruptcy on May 25, 2023, and simultaneously entered a sale agreement with Priority Technology Holdings. Plastiq had enabled businesses to make payments via credit card on invoices that typically required other payment methods. The deal marks a notable failure in the B2B embedded payments space.
Episode Six (E6), a US-based fintech providing payment processing and banking infrastructure via APIs, secured $48 million in Series C funding led by Avenir. The round includes participation from existing investor Anthos Capital. The funds will be used to expand go-to-market efforts and scale operations across 38 countries, modernizing payments infrastructure for banks and enterprises.
Entities: Episode Six · Avenir · Anthos Capital · HSBC · Mastercard · SBI Investment
Fifth Third Bancorp announced the acquisition of Rize Money, Inc., a fintech platform providing payment infrastructure and risk management via a single API. The deal strengthens Fifth Third's embedded payments business, which was already growing at double digits with projected annual revenue exceeding $130 million. This positions the bank to serve fintechs and technology companies seeking to offer financial products through their own platforms.
The FDIC issued a consent order against Cross River Bank, a major fintech sponsor bank, citing inadequate oversight of fintech partners, fair lending compliance failures, and unsafe banking practices. The action heightened regulatory scrutiny on the bank-fintech partnership model. Cross River is one of a small number of banks serving as BaaS sponsors for fintechs.
PortX, a ModusBox spinoff, raised $17.5 million in a Series A round to build out its Banking-as-a-Service-like platform connecting community banks with fintechs. Fuse and BankTech Ventures invested $10 million of the round. The platform focuses on seamless API integrations for smaller financial institutions.
Tarabut Gateway, a MENA-focused open banking platform, closed a $32 million Series A led by Pinnacle Capital with participation from Aljazira Capital, Visa, and Tiger Global. The platform connects banks and fintechs via APIs, functioning as BaaS-adjacent infrastructure. Proceeds will fund expansion in Saudi Arabia.
Entities: Tarabut Gateway · Pinnacle Capital · Aljazira Capital · Visa · Tiger Global
Mastercard and Fabrick signed a strategic partnership to accelerate embedded finance adoption across Europe. The collaboration enables companies to integrate payments, banking, and insurance into their products via APIs. Fabrick's platform already connected over 400 counterparties generating more than 330 million API calls monthly.
Treasury Prime partnered with Sydecar and Grasshopper Bank to provide embedded banking-as-a-service with white-label options. The platform processed $131.9 million in transactions by late 2023. The collaboration demonstrates the growing scale of BaaS middleware connecting fintechs with bank partners.
Entities: Treasury Prime · Sydecar · Grasshopper Bank