Neobanks Prize Pool It has been reported that the consumer app will be shut down as part of the acquisition.
it is be Report Fintech Business Weekly, Sunday (August 25th) it is Winding down a startup like PrizePool could be disruptive to customers who have relied on the service for essential banking tasks like direct deposits and bill payments.
Citing an email sent by PrizePool to users, the report said customers had until September 19 to transfer their funds to external bank accounts. PYMNTS has reached out to PrizePool for comment. do not have still Got reply.
The report also said the prize-winning bank Also It worked with “troubled” Evolve Bank & Trust.
“Thankfully, PrizePool is working directly with Evolve and doesn't appear to rely on an intermediary platform to support critical tasks like ledger creation. However, it's unclear whether Evolve's direct partners suffer from the same kinds of reconciliation challenges exposed by Synapse's ongoing collapse,” writes Jason Mikula of Fintech Business Weekly.
As PYMNTS writes, Synapse's problems began when its largest client, Mercury, chose to transact directly with Synapse's primary banking partner, Evolve, eliminating the need for Synapse as an intermediary.
“that trigger a chain of events“Synapse's other clients have relied on fintech providers as connective tissue, but little of it has been good,” the report said.
Synapse filed for bankruptcy protection and agreed to be acquired by Tabapay in April.but The deal It quickly collapsedFintech partners lose thousands of customers Locked out of their accounts.
Meanwhile, PYMNTS explored the concept of prize-linked savings accounts in its 2023 conversations. Owen Monaghan and Oisin TiernanCo-Founder, CEO and CTO each of Layupis a challenger bank offering such accounts to sports fans, and Tiernan explained that it's a concept that's been around for a while.
“It also exists in Australia and South Africa. More than a third of the UK population has a premium bond account, which is a prize-linked savings scheme,” he said.
PLSAs were introduced in the United States 10 years ago with the passage of the American Savings Promotion Act. PLSA's variable interest rates have proven to be useful for low- to moderate-income earners. Save more money Meanwhile, spending on lotteries and other forms of gambling is falling.
“Leveraging digital gamification to reinforce positive behaviors, like saving money or avoiding betting on sports, can go a long way in accelerating the adoption of new behavioral patterns, like making smarter financial choices,” PYMNTS wrote.