Credit Sesame has closed its acquisition of Canadian challenger bank STACK as part of its strategy to expand internationally.
Financial details of the transaction have not been made public.
Under the agreement, STACK’s digital banking offering will be integrated with Credit Sesame’s credit services to bring cash and credit management to consumers.
Credit Sesame has absorbed all STACK employees as part of the deal.
However, its Canada-based employees will continue to operate out of its existing offices in Toronto.
STACK general manager Miro Pavletic said: “We’re excited to join the Credit Sesame team to help consumers in the US and Canada keep as much of their money in their pockets as possible, help them grow their credit, and give them access to the right credit products at the right time.”
Last year, Credit Sesame and STACK created a no-fee digital banking service called Sesame Cash which comes with a Mastercard no-fee contactless debit card.
Credit Sesame will now leverage data science and AI-driven analytics to help consumers grow their cash and credit.
Using this service, consumers can gain access to free daily credit-score refreshes, cash rewards, and $1m in credit and identity protection.
Other features include early payday, real-time transaction notifications, Mastercard Zero Liability protection, direct deposit, ability to freeze or unfreeze the debit card in-app, and the ability to add a virtual card to mobile wallets.
Sesame Cash onboarded more than 200,000 customers within a month and 62% of Credit Sesame’s 15 million members have shown interest in this service.
Credit Sesame founder and CEO Adrian Nazari said: “Adding cash management to our credit platform was a natural next step to better help consumers manage their overall financial health, and it creates a unique benefit for our consumers and financial partners.”
Credit Sesame will further roll out new features like smart bill pay service, savings roundup of transactions, additional rewards programmes and credit-building features