Nayax Aims to Transition From Payments Platform to Bank

Payments solutions platform Nayax is the latest FinTech seeking an American banking charter.

The Israel-headquartered company announced Thursday (Aug. 6) that it had applied to the Connecticut Department of Banking to establish Nayax America Bank Inc., a “non-depository innovation bank” chartered under Connecticut’s Innovation Bank framework.

“Payments are how we built our relationship with customers. This represents a larger opportunity to become the financial platform our customers rely on to run their businesses,” Aaron Greenberg, chief strategy officer of Nayax, said in a news release.

“As we add issuing and credit products on our own regulated infrastructure, we can serve a larger share of each customer’s financial needs, and Connecticut’s Innovation Bank framework is the foundation for the next step in our U.S. strategy.”

According to the release, the bank would let Nayax customers in the U.S. access a variety of financial services, such as corporate cards, controlled-spend programs and working capital solutions like merchant cash advances and equipment financing, all delivered through the Nayax platform. The bank would not accept depositions, offer consumer products, or operate physical branches, the company added.

The efforts come as several other FinTech companies have begun demonstrating interest in receiving a bank charter after years of muted activity, as PYMNTS reported last month.

“Organizers continue to pursue de novo institutions for a variety of business models, reflecting a broader view among some FinTechs that direct federal supervision can offer greater long-term control than relying exclusively on sponsor-bank relationships,” the report said.

Also Thursday, Nayax announced the launch of Yellow Account, an account/deposit service for small and medium-sized business (SMB) customers, with Adyen as sponsoring bank. This service lets customers receive settlement funds, hold balances, and use linked business debit cards within Nayax’s platform, with Adyen holding the underlying deposits and satisfying the applicable banking, licensing, and regulatory requirements.

Nayax says it expects to expand the service once its bank is chartered and operational, with credit products such as merchant cash advances and equipment financing.

The company added that the charter application and Yellow Account launch are part of the next phase in Nayax’s global strategy, as these services would extend its footprint in the U.S., already its biggest market.

“By owning this regulatory infrastructure rather than relying on third-party sponsors, Nayax can embed banking services more directly into its platform, deliver a more seamless experience to customers, and deepen its relationship with the customers it already serves, capturing a greater share of their financial activity in the years ahead,” the release added.