Fintech startup Copper is facing a disruption in their banking services due to issues with the banking-as-a-service platform Synapse, which recently filed for bankruptcy. Copper is one of several companies impacted by the fiasco at Synapse, with customers of other companies such as Yotta Technologies and Juno Finance also locked out of their deposit accounts. Copper, which launched four years ago and raised $29 million in 2022, is now pivoting away from banking services to focus on their newer product called “Earn,” which helps users make money from surveys and games.
The plan to pivot away from banking services accelerated earlier this month when Copper’s banking middleware provider announced they were sunsetting their service. Copper CEO Eddie Behringer informed customers that the company would discontinue debit card and deposit account offerings within 24 hours. Despite prior planning, the company was forced to close banking accounts sooner than anticipated, affecting a small number of customers. Behringer also notified some customers that there was a delay in delivering their funds, but the majority of customers were able to access their funds with Copper’s quick actions.
Copper’s revenue has seen a significant increase of 160% year-over-year, largely due to their “Earn” product. Despite shifting away from banking services, Behringer stated that Copper remains committed to their mission of providing financial wellness and education. The company plans to generate software-as-a-service revenue through white-label partnerships with banks, allowing them to offer financial education and family banking products to customers. Copper was founded by Behringer and Stefan Berglund, who previously co-founded Snap Raise, an online fundraising platform for youth groups.
Copper currently has 30 employees and is continuing to hire. The company has received a total of $42 million in funding from investors such as Fiat Ventures, Panoramic Ventures, and Index Ventures. Behringer emphasized that moving forward, Copper will focus on providing all Americans with the ability to earn money through their platform. With the challenges posed by the disruption at Synapse, Copper is looking towards partnership opportunities with banks to expand their reach and offer financial education and services to a wider audience.
