Growing fintech company Central Payments completed a $30 million equity raise that includes it spinning off from Central Bank of Kansas City.
Central Payments, based in Sioux Falls, South Dakota, said in a Thursday release that it completed the funding round. Castle Creek Capital led the round, which included an additional investment by Oakland, California-based Launchpad Capital.
Central Payments claims to be the nation’s fastest-growing issuer of prepaid cards. President Trent Sorbe founded the company in 2014 with Central Bank of Kansas City.
As part of the new equity raise, Central Payments will spin out of Central Bank, although the bank will remain as an investor, issuer and strategic partner, according to the release.
Central Bank CEO Steve Giles said in a release that Central Payments was formed to expand the bank’s reach among low- and moderate-income customers with products like payroll cards, prepaid cards and remittances.
“This transaction allows Central Payments to expand on the original vision, and we’re excited to remain a part of it,” Giles said in the release.
Central Payments will retain its leadership team, and a board of directors will be named soon. The company also teased future new for its Falls Fintech accelerator.