Central Payment, a payments-tech and card-issuing platform, today announced it has raised $30 million in growth equity financing that will spin it out from Central Bank of Kansas City.
“Since inception, we have remained steadfast in our belief that new technology and the stability of a bank charter create opportunity 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 funding was led by Castle Creek Capital and included Launchpad Capital, according to the announcement.
“We see the future opportunity for banks in embedded finance and fintech. Central Payments’ team of fintech bankers and its Open\CP API platform are lynch pins for those relationships,” Tony Scavuzzo, managing principal at Castle Creak Capital, said in a prepared statement.
The investment is the first from Castle Creek Launchpad Fund I. Castle Creek and Launchpad Capital teamed up after Launchpad raised $90 million from 34 community banks, according to the announcement.
“We’re backing innovators and new financial technologies,” Launchpad Capital founder Ryan Gilbert, said in a prepared statement. “Central Payments’ origin inside 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 launched in 1951 to serve lower- and middle-income customers and CEO Steve Giles said in a prepared statement today that the institution will use funds of from the investment “to expand on the original vision.”
Central Payments said its executive team will remain intact and the investment will support the “Falls Fintech accelerator” for early-stage FinTech startups.
Announcing the launch of Fall Fintech in 2019, Central Payments stated it had formed the accelerator to boost endeavors that were near the “minimum viable-product stage.”
Launchpad Capital is an early-stage venture capital firm focused on financial services and based in Oakland, California.