Synctera Raises $24.5 Million to Support New BaaS Demand

Synctera’s new $24.5 million funding round is a signal that the infrastructure behind consumer financing is stabilizing. For retailers and operators, this is good news. Synctera acts as the bridge between traditional banks and the fintech apps you use to offer credit, debit, or lending products at the point of sale. When these 'Banking-as-a-Service' (BaaS) providers secure capital, it means more banks are feeling comfortable re-entering the market after a period of heavy regulatory scrutiny. What this means for your business is a potential increase in the variety and reliability of financing tools available to your customers. As more sponsor banks 'get back in the game,' competition increases. This usually leads to better approval rates, lower merchant fees, and smoother integration for the financing programs you run in your stores. If you have noticed a tightening in lender appetite or glitches in embedded payment tools recently, this investment suggests the industry is building the technical 'pipes' to fix those issues. It ensures that when you offer a customer a line of credit or a branded card, the bank backing that transaction has a modern, stable platform to manage it.

Source: PYMNTS

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