Central Payments lands $30m, spins out from Central Bank of Kansas City
US fintech Central Payments has raised $30 million in growth equity led by Castle Creek Capital with participation from Launchpad Capital.
The company says the transaction spins the firm out from Central Bank of Kansas City (CBKC). The bank will continue as an investor, issuer and strategic partner.
Proceeds from the raise will be used to facilitate growth initiatives such as additional investments in technology, product and staffing.
“Central Payments grew from a vision of expanding CBKC’s reach among low- and moderate-income consumers through products like payroll cards, prepaid cards and remittances,” says Steve Giles, CEO of CBKC. He adds the deal allows Central Payments “to expand on the original vision”.
Founded in 2014 with CBKC, Central Payments provides payments technology and issuing solutions for fintech and embedded finance businesses. It also claims to be the “fastest growing” prepaid card issuer since 2015.
“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,” says Central Payments founder and president Trent Sorbe.
Central Payments says its leadership team will remain “intact” and its board of directors is expected to be announced shortly.