Fintech Startup PerkStreet Financial to Close Operations

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Unable to secure additional funding, PerkStreet Financial announced Monday that it is closing its operations on Sept. 26.

The Boston startup, which partners with banks, has been offering people checking accounts that reward customers for their debit card swipes.

The PerkStreet accounts issued by The Bancorp Bank, of Wilmington, Del., will remain open. The accounts issued by Provident Bank, in Montebello N.Y., will shut down. Customers with remaining perk balances are unable to redeem them.

"Today is a deeply disappointing and painful moment for our team. We started PerkStreet with the seemingly impossible goal of making banking more rewarding for the average person," the company said on its website. "We were able to give cash back for spending money that was already earned, not risking going into debt by spending on a credit card. We believed we could reward everyone, not just the people who would tell you it takes money to make money. The last five years were an incredible journey. We've given out over $4 million in perks and done groundbreaking things to create our amazing online community. We are deeply saddened to see it end."

PerkStreet posted the news on its Facebook page. More than 220 people commented on the post; dozens expressed concern and disappointment over not being able to cash out their perks.

Dan O'Malley, former Capital One executive, founded PerkStreet in 2008.

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One of several "disruptor" groups as they like to be referred to. Blazing on the Banking Scene with the mantra that we will change everything so all will like and appreciate Banking again. Examples are BankSimple which is now just Simple as they learned you can not use the word Bank in your name is you are not a Bank. They did have an awesome PR machine though! Soon we will see MovenBank which to has shortened its name due to regulatory requirements to simply Moven. Each of these promise to help you manage and budget your current cash flow based on spending habits. Profits will come from exchange fees which in an of themselves is very thin.
Posted by thebankalchemist | Tuesday, August 13 2013 at 10:19AM ET
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