The four Irish banks seeking to create a money transfer app to compete with Revolut have raised an additional € 5m to fund the business.
Documents filed with the Companies Registration Office on Friday show that AIB, Bank of Ireland, Permanent TSB and KBC Bank Ireland have committed more capital to the new entity, Synch Payments.
AIB acquired an additional 2.3 million euros of shares while Bank of Ireland bought 1.7 million euros. Permanent TSB bought € 855,000 in shares while KBC Bank Ireland, which exits the Irish market, took an additional € 8,500.
This follows a first capital increase of 5.9 million euros announced earlier this year.
The joint venture aims to provide a payments app that will allow users to send and make payments in real time, an app that will take on competing banks like Revolut, Zumo and Germany’s N26. The initial phase should focus on consumer-to-consumer payments.
Traditional banks fear that as these newer platforms continue to gain market share in payments, they will eventually have a customer base ready for future loans and other financial products.
Project Synch hit a stumbling block earlier this year after the Competition and Consumer Protection Commission rejected its request for a joint venture.
The commission said it was unable to determine whether the proposed transaction was a merger or acquisition within the meaning of Irish competition laws.
The company is still waiting for the green light from the competition authority but should be launched next year.
“Synch Payments was created by some of Ireland’s leading banks with the aim of transforming digital payments to and from consumers and businesses in Ireland through the introduction of a new payments app,” a spokesperson said by Synch. “Although the banks remain the shareholders of Synch, it was established as an independent entity with its own management team. He is currently awaiting approval from the CCPC, ”she said.
“The recent filings with the company registrar relate to a planned allotment of shares among our existing shareholders. The additional investment will be used to support both the launch of the business and its early growth plans, ”she said.
“We salute and recognize the continued commitment and support of our shareholders as we prepare to bring the benefits of Synch to market next year,” she added.