Nayax Files for US Bank Charter as Fintechs Move Into Embedded Finance

Israeli payments and commerce technology company Nayax has filed an application to establish Nayax America Bank in Connecticut under the state's Innovation Bank framework, Breaking Fintech reported on August 8. The move extends the company's expansion into embedded finance as fintechs increasingly seek their own charters rather than renting banking rails from partners.

A Branchless, Deposit-Free Model

The proposed non-depository bank would have no branches and would not take customer deposits. Instead, it would support financial products for Nayax's merchant ecosystem, including corporate cards, controlled-spending programs, working-capital products, merchant cash advances and equipment financing — packaging lending and payments around the unattended and vending payments infrastructure Nayax already operates.

Beyond the Charter

Nayax also recently launched Yellow Account, a business account for small and medium businesses with Adyen acting as sponsor bank. The charter review is expected to take roughly six months, and if approved, Nayax America Bank would give the company direct control over the financial products attached to its 1.5 million-plus connected payment devices worldwide.