London payment firm launches Banking-as-a-Service solution on Advcash
Fintech infrastructure firm, Mercuryo has partnered with payment platform Advcash to offer its customers access to virtual IBANs for EU and UK residents through its banking-as-a-service (BaaS) technology.
Advcash will now be able to harness Mercuryo’s BaaS capabilities, providing users with digital bank accounts to store, transfer and convert their crypto holdings into fiat.
Petr Kozyakov, co-founder and chief executive officer at Mercuryo said his London-based team has been “hard at work” developing their BaaS offering.
He believes the partnership with Advcash will be a “stellar use case for the future of the embedded finance industry”.
A product of the fintech revolution that started with Paypal acquiring a bank license in 2007, BaaS describes a business model where non-bank businesses can offer bank-like products to their customers.
Today, a prime example of BaaS being used includes Uber’s partnership with BaaS provider Green Dot in 2016, with Uber offering its driver’s deposit accounts and credit cards through Green Dot’s GoBank mobile checking account.
The crypto space has been in particular need of BaaS services, as crypto custodians, issuers and exchanges cannot offer bank deposit accounts without deposit insurance.
Conversely, two-thirds of Mercuryo’s customers are more likely to choose a bank that offers crypto services on top of traditional finance.
BaaS allows crypto native platforms as well as traditional financial firms to integrate both solutions together, a statement from Mercuryo said.