Copper Faces Account Access Issues

A subset of customers using fintech startup Copper are currently unable to access their deposit accounts due to disruptions at Synapse, a banking-as-a-service platform that recently filed for bankruptcy. Synapse, which served as a critical intermediary between fintech firms and banks, was supposed to be acquired by TabaPay, but the deal collapsed earlier this month.

This disruption has affected multiple fintech companies, including Yotta Technologies and Juno Finance, whose customers are also experiencing account access issues, according to Forbes.

Copper, launched four years ago, initially targeted teens and families with its banking platform. In 2022, the company raised $29 million and had over 800,000 users. However, due to the recent turmoil at Synapse, Copper is rapidly shifting its focus from banking services to its new “Earn” product, which allows users to make money through surveys and games.

Copper CEO Eddie Behringer informed customers on May 12 that the company would discontinue its debit card and deposit account offerings within 24 hours due to the impending shutdown of Synapse’s services. Copper quickly acted to help most customers access their funds, though some remain locked out.

Despite these changes, Behringer emphasised that Copper remains committed to its mission of promoting financial wellness and education. He noted that Copper’s revenue has increased by 160% year-over-year, primarily driven by the “Earn” product. Moving forward, Copper plans to establish white-label partnerships with banks, offering its financial education and family banking products as a software-as-a-service solution.

Copper continues to grow, with 30 employees and ongoing hiring efforts. To date, the company has secured $42 million in funding from investors including Fiat Ventures, Panoramic Ventures, Insight Partners, and others.