Central Payments Closes $30M Growth Equity Raise
Central Payment, a payments technology and card issuing platform, announced today that it has raised $30 million in growth equity funding that will spin it out of Central Bank of Kansas City.
“Since our inception, we have been steadfast in our belief that new technology and the stability of a bank charter create opportunities for banks in fintech and embedded finance when others may have perceived a threat,” Central Payments founder and president Trent Sorbe said in a prepared statement.
The financing was led by Castle Creek Capital and included Launchpad Capital, according to the announcement.
“We see the future opportunity for banks within embedded finance and fintech. Central Payments’ team of fintech bankers and its Open\CP API platform are lightning rods for these relationships,” said Tony Scavuzzo, managing principal at Castle Creak Capital, in a prepared statement.
The investment is the first from Castle Creek Launchpad Fund I. Castle Creek and Launchpad Capital joined forces after Launchpad raised $90 million from 34 community banks, according to the announcement.
“We support innovators and new financial technologies,” Launchpad Capital founder Ryan Gilbert said in a prepared statement. “Central Payments’ origins in a community bank and its positioning at the intersection of banking, payments and fintech made it an ideal first investment for our new fund.”
Central Bank of Kansas City will remain an investor in Central Payments.
The bank was launched in 1951 to serve low- and middle-income customers, and CEO Steve Giles said in a prepared statement today that the institution will use funds from the investment “to expand on its original vision.”
Central Payments said its management team will remain intact and the investment will support the “Falls Fintech accelerator” for early-stage FinTech startups.
Read more: Amid FinTech/FI pacts, governments join development efforts
Central Payments announced the launch of Fall Fintech in 2019, stating that it had formed the accelerator to grow endeavors that were close to the “minimum viable product stage.”
Launchpad Capital is an early-stage venture capital firm focused on financial services and based in Oakland, California.
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