US banking-as-a-service provider Central Payments has completed a $30 million growth equity raise and spun out from Central Bank of Kansas City.
The existing management team, led by founder and president Trent Sorbe, will remain in place and a board of directors will be announced soon.
Central Bank of Kansas City will continue as an investor, issuer and strategic partner of Central Payments, which the community bank founded in 2014 in partnership with Sorbe.
Central Payments runs Open*CP Fintech API Marketplace and is among the fastest growing prepaid card issuers in the US. It is also preparing to share plans for its Falls Fintech accelerator, which focuses on fast-tracking market readiness for early-stage financial technology startups.
Castle Creek Capital led the round, with additional investment from Launchpad Capital.
The transaction served as the inaugural investment for Castle Creek Launchpad Fund I. Launchpad Capital, an Oakland-based venture firm, recently announced its joint venture with Castle Creek and the closing of its new $90 million fund, raised from 34 community banks.
Proceeds from the fundraise will be used to facilitate strategic growth initiatives such as additional investments in technology, product and staffing.
Commenting on the news, Sorbe said: “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, while others may have perceived a threat. This raise will enable us to continue trailblazing with our Technology | Charter | Choice approach.”