Credit Sesame Completes Acquisition of STACK

Home » FinTech » FinTech News » Credit Sesame Completes Acquisition of STACK

Credit Sesame Completes Acquisition of STACK

Following several notable deals so far this year, it looks like FinTech’s M&A streak is continuing, with Credit Sesame emerging as the latest buyer. This week, the company announced that it had completed its acquisition of Canadian challenger bank STACK. Previously, the two companies had collaborated to introduce Sesame Cash — a free digital bank account that comes complete with a Mastercard debit card. That product was first released to a waitlist of customers in March and has since been made available to all new and existing users. According to the company, Sesame Cash has seen more than 200,000 sign-ups since its wide release in mid-May. Meanwhile the service itself has more than 15 million members.

With STACK being based in Canada, the acquisition also marks the beginning the Credit Sesame’s planned international expansion. Later this year, the company plans to add its credit services to STACK’s digital banking product. In a press release, Credit Sesame states that, with this move, they’ll be poised to lead the Canadian market. Also notable is that several STACK employees have been given new jobs and titles within Credit Sesame and will continue to work out of the Toronto-based office.

Speaking to their banking aspirations and how their purchase of STACK can help them achieve those goals, Credit Sesame founder and CEO Adrian Nazari said in a statement, “Together with STACK, we are combining the power of smart banking and AI-driven credit management to create a new kind of personal finance.” He continued, “How much cash you have, and how and when you use your cash, have a big impact on your credit. 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.”

Similarly  Miro Pavletic (previously CEO of STACK and now General Manager, Canadian & International Business for Credit Sesame) stated, “Credit Sesame and STACK share the belief that technology can help democratize access to smarter services and stronger support to help consumers achieve financial wellness. We’re excited to join the Credit Sesame team to help consumers in the U.S. 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.”

For Credit Sesame, the closure of this acquisition comes at a time when one of its main competitors — Credit Karma — finds itself on the other end of a separate deal. In February, Intuit announced plans to acquire Credit Karma for a whopping $7.1 billion. On the one hand, this dominance could further threaten Credit Sesame yet, on the other hand, some have wondered if Intuit might eventually neuter the Credit Karma product to the point where consumers might seek alternatives. Regardless, with this deal, Credit Sesame shows that it’s forging its own path and could prove to be a more formidable rival than some might give them credit for.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Gemini Plans Crypto Rewards Credit Card

With Bitcoin and cryptocurrencies once again garnering a ton of public attention, there seems to be a renewed interest in making such assets as accessible as possible. This not only includes the likes of PayPal allowing users to buy Bitcoin and other tokens but also introducing ways for customers to...

Walgreens Planning Co-Branded Credit Card with Synchrony

It seems that Walgreens has a plan to keep customers' wallets healthy. This week, the drug store chain announced that it would be expanding its line-up of financial services, including debuting a co-branded credit card product. The upcoming card will integrate with the recently-launched myWalgreens loyalty program, giving customers the...

Visa and Plaid Call Off Acquisition Plans

One of the biggest FinTech deals of the past year will no longer be going forward. This week, Visa and Plaid announced that they have mutually agreed to terminate their merger plans. Visa originally intended to pay $5.3 billion for Plaid in an acquisition that was first announced almost exactly...