US-based Synovus Bank has acquired a 60% ownership stake in Qualpay by making an undisclosed investment in the cloud-based payments technology provider.
Qualpay’s platform combines a payment gateway with merchant processing solutions to enable merchants and independent software vendors (ISVs) to integrate payments into their software or websites.
Synovus will use Qualpay’s technology to power its new money-as-a-service offering, called Maast, which is slated to launch later in 2022.
The new offering will club embedded payment and embedded banking on one platform and enable ISVs to offer financial services such as payment processing, debit cards and loans.
Synovus president and CEO Kevin Blair said: “This investment in Qualpay demonstrates our commitment to delivering innovative solutions that scale at the speed of business.
“Maast will help ISVs simplify the integration and delivery of value-added solutions while deepening customer relationships, enabling them to become the go-to provider for software, payments, and banking services in the markets they serve.”
Meanwhile, the proceeds from Synovus will be used by Qualpay to foray into new vertical markets, expand the range of industries bridge to a better payment and reporting experience and boost its offerings for ISVs.
Qualpay CEO Craig Gass said: “Qualpay is excited to partner with Synovus to propel our growth into platform-as-a-service and augment with embedded finance.
“As we enter this new phase of growth, we will provide ISVs best-in-class customer service from both the merchant and partner side in a way that is simply unmatched by other industry players.
“We have enjoyed a long, fruitful relationship with Synovus, and we are extremely pleased to be chosen to support Maast in the delivery of this innovative fintech solution.”