Late Friday, we learned that Synapse has filed for Chapter 11 bankruptcy and that its assets will be acquired by payments infrastructure company TabaPay.
This will not come as a surprise to anyone who has been following the slow-moving Synapse saga for the last 12+ months. The company had done multiple rounds of layoffs and had an ongoing dispute with Mercury.
The press release provides few details, but according to Forbes, the deal includes Synapse’s lending, brokerage, and credit and debit card issuing platforms. Synapse has lending licenses in 44 states.
TabaPay has been focused on payments but this acquisition will allow it to become more of a one-stop shop for its fintech clients that includes the likes of Chime, DailyPay and Upgrade. It will also continue to serve Synapse’s existing clients.
So, more turmoil for the BaaS space. The story of the first four months of the year has been a complete reworking of the BaaS landscape.
While painful for many of those involved, in the long run I expect fintech will emerge stronger because of these changes.
Featured
> TabaPay to Acquire Assets of Bankrupt FinTech Synapse
Instant money movement platform TabaPay is acquiring Synapse’s assets following the latter company’s bankruptcy. The deal, announced Friday (April 19), will allow TabaPay to offer new financial services for FinTechs and financial institutions, the company said in a news release.
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The British neobank, serving over 40 million customers globally, has acquired a banking license in Mexico.
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