Meet Swan, a brand new French startup that wishes to let different corporations supply monetary providers by issuing playing cards, financial institution accounts and IBANs with just some strains of codes. The firm could possibly be thought of as a bank-as-a-service platform, like Treezor or solarisBank.
Originally based by startup studio eFounders, the startup simply raised a $5.9M million (€5 million) seed spherical led by Creandum with Bpifrance’s Digital Venture fund additionally taking part.
Swan has obtained an e-money license from the French regulator, which lets them function cost providers and maintain person funds. Unlike a financial institution, it might probably’t subject credit score strains. The firm additionally handles danger, which signifies that it handles KYC processes (“know your buyer”). Essentially, in the event you’re working with Swan, they deal with all of the dangerous features of managing cash.
Compared to different bank-as-a-service corporations, Swan doesn’t essentially wish to energy neobanks and assist them get began. The startup thinks a ton of corporations contact on monetary providers however can’t supply these providers as a result of it’s such an enormous funding.
For occasion, you possibly can think about an invoicing product that generates IBANs for you in order that it routinely matches incoming transactions to the proper bill (like Upflow). On-demand corporations may subject playing cards to their supply staff companions in order that they’ll pay for groceries and meals straight utilizing a Swan-powered card. Marketplace corporations may deal with pay-ins and pay-outs at a extra granular stage with every consumer managing their very own e-money pockets.
This imaginative and prescient is a part of a much bigger pattern known as embedded finance. By increasing your product to manage a much bigger stack of the expertise, you possibly can present new services and products and make your clients stick round for a very long time.
As a Swan buyer, you possibly can customise the branding with your personal brand and colours. When you subject playing cards, you possibly can select between a bodily Mastercard card or a digital one. They work with Apple Pay and Google Pay. You pay €900 per thirty days and a flat month-to-month payment for every account and card that you simply subject.
Swan is taking a developer-oriented strategy. The firm says it might probably take a number of months to combine a banking-as-a-service product into your personal product. With an API-driven strategy, Swan desires to make it as straightforward as integrating Stripe in your e-commerce web site.