SEATTLE–Copper, a fintech that was hailed for offering a banking platform aimed primarily at teens that included a debit card, a mobile app, educational games and other features, has shut down its financial offerings.
The company said it has discontinued its kids’ banking services, a move it hastened to make after some users found themselves locked out of their accounts.
According to Forbes, the change comes as a result of Copper’s banking services being provided by Synapse, a middleman between consumers and fintechs, which has filed for bankruptcy in April. Forbes reported the demise oof Synapse has affected neobanks and fintechs and approximately 10 million end-users in total.
Forbes reported that Copper had indicted it had planned to eliminate its banking offerings anyway, but was forced to move earlier than expected as a result of the problems at Synapse.
“Late last week, we learned that [Synapse] is sunsetting their service imminently,” CEO Eddie Behringer said in a statement issued by Forbes. “Despite our prior planning, this event has forced us to close banking accounts much sooner than anticipated. 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. However, we will continue to serve our member community as an earn-first financial app.”
How App Works
According to the report, the “earn-first financial app” allows users to credits when they play certain games, scan receipts, take surveys, refer friends and complete other simple activities. When a user accrues 500 credits, they can exchange them for money and gift cards. Copper claims users have earned over $3.1 million by redeeming credits, the company said.
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