A Greater Manchester-based current account firm has sold its entire 5,000-strong portfolio to leading fintech challenger Cashplus – a company close to becoming a full UK bank.
Icount handles more than £2m of customer payments per month – and will now become part of the Cashplus family of products, now boasting over 2m accounts.
Cashplus claims to be on of the few profitable UK fintech challengers with nine straight years of operating profit and revenues of around £50m, and said it is well placed to continue growth even through the pandemic.
The deal for an undisclosed fee comes with Cashplus in the final stages of its application to become a full UK bank, a process it hopes to complete early in the New Year.
The deal is expected to be 2021’s first UK fintech acquisition.
Cashplus CEO Rich Wagner said: “2021 is set to be a very exciting year for Cashplus. Our anticipated upcoming authorisation as a bank will allow us to better serve the UK small businesses and consumers that need our banking and credit services, and I’m pleased that we’ll be starting the year with this acquisition as a sign of our confidence.”
“In times of uncertainty customers want to know that their money is entrusted to a sustainable provider with a viable long-term future, we are well positioned to welcome more of those customers, whether through our own channels, existing and new partnerships, or deals like this one with icount.”
Cashplus has provided card issuer services for Icount for past eight years.
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Altrincham-based Icount was founded by Samuel Mond in 2009 as part of ClearDebtGroup PLC. Mr Mond purchased the business from ClearDebt in 2014 and has since grown the portfolio to handle more than £2m of customer payments per month.
Mr Mond said: “I always saw the Icount product as an innovative solution to everyday banking needs and I’m delighted that Cashplus, one of the original fintech innovators, will be taking the business forward.
“I remember acquiring our first cardholder and I’m extremely proud to have built a portfolio of accounts transacting over £2m per month. I look forward to seeing where the business goes next now as part of the Cashplus family of products.”