American fintech Credit Sesame is moving into the Canadian market through the acquisition of challenger bank Stack. Terms of the deal were not disclosed.
Credit Sesame began life as a tool to help Americans access and boost their credit scores, winning over 15 million members.
However, late last year it teamed up with Stack to develop a digital bank account, called Sesame Cash, that promises to help consumers grow their cash and credit together in one place.
Following a pilot, the account was launched in mid-May and has signed up more than 200,000 users in less than a month.
Credit Sesame has now bought its partner, with all Stack employees, including CEO Miro Pavletic, joining the team.
The acquisition is the first step toward Credit Sesame's international business expansion plans. Later this year, its credit services will be integrated with Stack's offering in Canada.
Adrian Nazari, CEO, Credit Sesame, says: "Together with Stack, we are combining the power of smart banking and AI-driven credit management to create a new kind of personal finance."