Payments technology company Nayax Ltd. has applied for a Connecticut innovation bank charter to expand its U.S. business into commercial lending and card issuing.
The company plans to establish Nayax America Bank Inc., a non-depository institution based in Fairfield County.
Israel-based Nayax provides payment technology, software and loyalty tools primarily for unattended retail businesses, including vending machine operators. The company employs about 1,250 people worldwide and generates roughly 40% of its revenue in North America, its largest market.
If approved, the bank would offer commercial lending and card-issuing services through the Nayax platform, including corporate cards, merchant cash advances and equipment financing. It would not accept deposits, offer consumer banking products or operate branches.
Connecticut’s innovation bank charter allows financial technology companies to offer certain commercial banking services without accepting retail deposits or obtaining federal deposit insurance.
“Payments are how we built our relationship with customers,” Chief Strategy Officer Aaron Greenberg said. “As we add issuing and credit products on our own regulated infrastructure, we can serve a larger share of each customer’s financial needs, and Connecticut’s Innovation Bank framework is the foundation for the next step in our U.S. strategy.”
Nayax said it holds regulated payment and card-issuing authority in the European Union, United Kingdom and Israel.
Nayax would become one of a small but growing group of fintech companies choosing Connecticut’s innovation bank charter, joining Banking Circle US in Stamford and Numisma Bank in Greenwich.
The Department of Banking’s review is expected to take about six months and will include an independent feasibility study and public hearing, before Banking Commissioner Jorge Perez decides whether to approve the charter.
