Fintech Startup Copper Halts Banking Services Due to Synapse Crisis

A limited number of Copper’s clientele, a fintech startup, are currently unable to access their funds due to issues with Synapse, a troubled banking-as-a-service provider.

This challenge is part of a wider crisis at Synapse, which declared bankruptcy recently. Before its financial woes, Synapse was poised for acquisition by TabaPay, a deal that collapsed as reported by TechCrunch.

Similar access issues have been reported by customers of Yotta Technologies and Juno Finance, as covered by Forbes.

Launched to serve teens and families with banking needs, Copper, in its four-year journey, managed to attract significant funding and acclaim, including a prominent recognition at the GeekWire Awards.

In response to the banking challenges, Copper’s CEO, Eddie Behringer, revealed plans to shift the company’s focus toward the “Earn” product, designed to monetize activities like surveys and games, amid the banking service discontinuation.

Despite previously laid plans, banking service discontinuations were hastened due to impending service cessation by their banking middleware provider, as announced by Behringer.

Following this transition, Copper informed a portion of users about a delay in fund disbursement.

Despite the quick actions to resolve banking access, a few customers remain affected.

Behringer emphasizes that, despite moving away from banking services, Copper’s mission of fostering financial wellness hasn’t changed, promising continued focus on enabling earnings through its platform.

With a notable increase in revenue, Copper aims to partner with banks for SaaS offerings, leveraging its developed financial educational tools for families.

Before Copper, Behringer and Stefan Berglund co-founded Snap Raise, a fundraising platform focused on youth groups. Currently, Copper is in a hiring phase, backed by significant venture capital funding from a variety of investors.

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