Meet Swan, a new French start-up that wants to let other business use monetary services by releasing cards, checking account and IBANs with simply a couple of lines of codes. The business could be thought about as a bank-as-a-service platform, like Treezor or solarisBank.
Originally founded by startup studio eFounders, the start-up simply raised a $5.9 M million (EUR5 million) seed round led by Creandum with Bpifrance’s Digital Venture fund likewise getting involved.
Swan has acquired an e-money license from the French regulator, which lets them operate payment services and hold user funds. Unlike a bank, it can’t provide line of credit. The company likewise manages risk, which indicates that it deals with KYC procedures (“know your client”). Basically, if you’re working with Swan, they take care of all the risky aspects of handling cash.
Compared to other bank-as-a-service companies, Swan doesn’t always want to power neobanks and help them get going. The start-up thinks a lots of companies touch on financial services but can’t use those services since it’s such a huge investment.
For example, you can envision an invoicing product that produces IBANs for you so that it immediately matches inbound transactions to the right billing (like Upflow). On-demand business might release cards to their shipment
workers partners so that they can spend for groceries and food straight utilizing a Swan-powered card. Marketplace business might deal with pay-ins and pay-outs at a more granular level with each client managing their own e-money wallet.
This vision is part of a larger trend called embedded finance. By broadening your product to manage a larger stack of the experience, you can supply brand-new products and services and make your customers remain for a very long time.
As a Swan client, you can tailor the branding with your own logo design and colors. When you release cards, you can choose in between a physical Mastercard card or a virtual one. They work with Apple Pay and Google Pay. You pay EUR900 monthly and a flat monthly fee for each account and card that you issue.
Swan is taking a developer-oriented technique. The business says it can take a number of months to integrate a banking-as-a-service product into your own product. With an API-driven technique, Swan wishes to make it as simple as integrating Stripe on your e-commerce website.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.