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The demise of BaaS fintech Synapse could disrupt the funding prospects for other startups in the space

Welcome to TechCrunch Fintech! This week, we look at the long-term implications of Synapse’s bankruptcy for the fintech sector, Majority’s impressive ARR milestone, and more!

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Big story

Last week we reported on how Copper bankinga digital banking service aimed at teenagers, suddenly canceled his bank deposit accounts and debit cards. The startup stated that its bank intermediary software provider, Synapse, has «soon» shut down its service. The situation was just one of many where businesses and consumers have been affected by the implosion of banking-as-a-service (BaaS) company Synapse. I wrote deep diving into the potential short-term and long-term implications of its demise for the fintech sector. While it’s certainly not the only bad news, it shows just how treacherous things are for the often interdependent world of fintech when one key player runs into trouble.

Analysis of the week

Aside from Copper, so many small digital banks have been struggling lately that it was even more noticeable to see an immigrant banking platform Most not only to collect more money, but also to discover that he has it achieved $40 million in ARR since April. That’s no easy feat, especially in a crowded field that includes competitors such as Commun, Maza, Alza and Welcome Technologies. Founded in 2019 by Swedish immigrant Magnus Larsson, Majority says that in the past year, the company has tripled its revenue, while its user base has doubled.

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Dollars and cents

UK fintech Speedwhich is aimed at insurance companies with an all-in-one treasury management and payment platform, closed $93 million Series C funding round led by the investment giant KKR. The company said it is redoubling its efforts to expand in the US.

Finoutan enterprise-focused toolset designed to help manage and optimize cloud costs, last week closed a $26 million Series B round led by Red Dot Capital. We have covered the company launch from the hidden system in 2022. Finout says it has attracted high-profile clients such as The New York Times, Tenable and Wiz despite this crowded market, and that it has grown its annual recurring revenue ninefold from 2022 to 2023.

Founded by Peter Thiel Valar Ventures — which has supported numerous fintechs — raised a fund of 300 million dollarshalf the size of the last one.

What else are we writing?

Google Pay he announced last week performance several updates that take advantage of its integrations with other Google products, such as Android and the Chrome browser. People paying with Google Pay can now see their card’s perks and benefits before selecting a card. In addition, they can use «buy now, pay later» through partners such as Affirm and Zip and can fill in their card information using biometrics or a PIN, instead of entering a security code. The changes are designed to improve the consumer experience of using Google Pay and make it a more competitive option compared to other payment methods.

India’s digital payments platform Paytm warned about job cuts after reporting that its net loss widened in the fourth quarter as it struggles with recent regulatory restrictions.

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Interesting titles

Stripe launches new payment and financing tools to accelerate UK business growth

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