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Synapse fallout leaves Copper customers unable to access funds

Synapse fallout leaves Copper customers unable to access funds

The collapse of BaaS platform Synapse has forced teen finance app Copper to suddenly discontinue its bank deposit accounts and debit cards, leaving some customers unable to access their funds.

Copper contacted customers last week warning that the products would be discontinued within 24 hours after learning that the "banking middleware provider we utilize [Synapse] is sunsetting their service imminently".

The app had already been planning to pivot away from banking services to focus on a white-label product and its Earn platform for helping users make money from surveys and games.

However: "Despite our prior planning, this event has forced us to close banking accounts much sooner than anticipated," says CEO Eddie Behringer in a letter to customers.

Synapse filed for bankruptcy in April, striking a deal to sell its assets to money moving fintech TabaPay. However, TabaPay has pulled out of the agreement.

On social media, several users say that their children have been unable to access money that they have in Copper accounts.


Behringer tells TechCrunch that Copper began returning customer money as soon as it discovered that the Synapse-TabaPay deal could be off and that only a "single-digit percentage" of users have not yet received their funds.

"We completely understand that this expedited closure period is frustrating, and we apologize for not being able to provide ample notice in transitioning your account," he writes.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 23 May, 2024, 11:17Be the first to give this comment the thumbs up 0 likes

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