Central Bank of Kansas City in Missouri has spun off its payments and card-issuing platform after the business raised $30 million.
Central Payments, founded in 2014 as part of the $350 million-asset Central, said in a press release that it raised funds from investors that include Castle Creek Capital and Launchpad Capital. Central will remain an investor in Central Payments.
“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,” Trent Sorbe, Central Payments’ president, said in the release.
The Castle Creek Launchpad Fund I has raised $90 million from 34 community banks to make investments. Central Payments plans to launch a fintech accelerator later this year.
“We’re backing innovators and new financial technologies,” Ryan Gilbert, Launchpad’s founder, said in the release. “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.”