The Tel Aviv tech company that bypassed Israeli banks on the way to America
While Israel's largest banks are examining a change in accounting standards to trade on Wall Street, Nayax is ahead of them, establishing an independent American banking arm that will offer credit solutions and working capital financing. The move is intended to reduce dependence on external entities in the US market, which accounts for about 40% of the company's revenues, and to deepen services for businesses.
Globes revealed this week the revolution planned by the Supervisor of Banks, Dani Hahiashvili, which will allow the five largest Israeli banks to change accounting standards in order to begin trading on Wall Street. This is a move that could change the trading rules for bank stocks traded on the Tel Aviv Stock Exchange. And here, the fintech company traded on the Tel Aviv Stock Exchange and NASDAQ, Nayax, may bypass them and become an American bank itself.
Nayax, led by CEO and Chairman Yair Nahmad, announced on Thursday that it has submitted an application to the Connecticut Department of Banking in the US to establish a bank under its full ownership. The name of the bank is Nayax America Bank. If its establishment is approved, it will operate under a state license and will not accept deposits, will not offer products to private customers, and will not operate branches.
From clearing to credit: how the new bank will work
This is a move intended to transition Nayax from a clearing provider to an entity that provides credit itself. Upon receiving the license, the bank will be able to offer the company's customers in the US business cards, expense management and control systems, and working capital financing solutions — including advances based on clearing turnover and equipment financing — directly from within the Nayax platform. The bank will be held by Nayax's US subsidiary, which is an American holding company established for this purpose.
The US is Nayax's largest market and is responsible for about 40% of its global revenues. Until now, the company has relied on payment and card issuance licenses in the European Union, the UK, and Israel, and owning its own regulatory infrastructure in North America is supposed to reduce dependence on external entities and deepen the company's share in its clients' financial activities.
At the same time, Nayax launched an account and balance management service for small and medium-sized businesses operating on its platform. The service operates under the license of the company Eidan and is not conditional on receiving the new bank license; even after its establishment, Eidan will continue to hold client funds, since the bank will not accept deposits.
The management of the new bank consists of the company's own senior executives: Carly Furman, CEO of Nayax North America, will serve as its CEO, Sagit Manor as CFO, and Haim Pinto as CTO. The initial board of directors will include Furman, Aaron Greenberg, Nayax's Chief Strategy Officer, and Patrick Moroney as an independent director. Later, the board is expected to expand to five members, three of whom will be independent.
Nayax, founded in 2005 as a developer of payment solutions for vending machines, employs about 1,250 people in 13 sales offices. It went public on the Tel Aviv Stock Exchange in 2021 and on NASDAQ in 2023. Its current market value in Tel Aviv stands at about 7 billion shekels, and its stock has risen by 34% over the past year.
