Fintech startup Copper is experiencing issues with access to deposit accounts for some customers due to problems with banking-as-a-service platform Synapse, which recently filed for bankruptcy. Copper, along with other companies such as Yotta Technologies and Juno Finance, is affected by this ongoing disruption. Copper, founded four years ago, raised $29 million in 2022 and had over 800,000 users. The company was initially focused on providing banking services to teens and families but is now pivoting towards its newer “Earn” product, which allows users to make money from surveys and games.
In May of this year, Copper CEO Eddie Behringer announced that the company would be discontinuing its debit card and deposit account offerings within 24 hours due to the impending shutdown of the banking middleware provider that Copper utilized. This sudden decision was a result of the provider sunsetting their service sooner than expected, causing Copper to accelerate its pivot away from banking services. Despite efforts to help the majority of customers access their funds, some are still experiencing difficulties. An email was sent to affected customers notifying them of delays in fund delivery.
Despite the shift away from banking services, Copper remains committed to its mission of providing financial wellness and education. Copper’s revenue has seen a significant increase, primarily due to the success of the “Earn” product. Behringer emphasized that Copper will continue to focus on offering all Americans the ability to earn money through their platform. The company plans to establish white-label partnerships with banks to generate software-as-a-service revenue, enabling larger retail banks to offer Copper’s services to their customers.
Copper was co-founded by Behringer and Stefan Berglund, who previously launched Snap Raise, an online fundraising platform for youth groups based in Seattle. With a team of 30 employees and plans to expand, Copper has received a total of $42 million in funding from various investors, including Fiat Ventures, Insight Partners, and Index Ventures. The company aims to continue providing financial education and family banking services, albeit through its new earn-focused platform. Copper’s products will offer users the ability to earn money through various activities, while their partnership strategy will allow them to reach a wider audience through collaborations with other financial institutions.
In light of the ongoing issues with Synapse and the sudden pivot away from banking services, Copper is facing challenges in ensuring that all customers have access to their funds. The company is working to resolve these issues and is actively hiring to expand its team. Despite the setbacks, Copper remains dedicated to its original mission of providing financial wellness and education to its users. By focusing on its innovative earn-focused platform and establishing white-label partnerships with banks, Copper aims to continue offering a unique financial opportunity to all Americans.
