You might not notice it, but chances are you’re using Banking-as-a-Service every day: when you get paid early by your gig app, tap a card from your favorite store, or split a bill on a fintech app.

BaaS works quietly in the background, helping non-banks offer real financial services without having to build a bank from scratch.

It makes everyday financial tasks faster, easier, and more connected.

And it’s more than just a trend: the banking-as-a-service market is growing quickly.

Valued at US$29.5 billion in 2024, it’s projected to reach US$74.8 billion by 2030, growing at a CAGR of 16.8%.

In this article, we explore the top BaaS providers, the key forces behind this growth, and what it means for the future of finance.

TL;DR – Best BaaS Providers in 2025

Provider	Core Focus	Key Offerings	Geographic Reach	What Sets It Apart
Solaris	Full-stack BaaS with banking license	Digital accounts, card issuing, payments, lending, KYC	Pan-European (30+ EEA countries)	EU banking license, modular APIs, local IBANs, strong partner network (Samsung, ADAC)
Railsr	Embedded finance platform	Accounts, cards, credit, loyalty, rewards	Global (Europe, APAC, North America)	One-contract model, strong vertical focus (e.g. sports, retail), 250+ clients
Marqeta	Card issuing & payment infrastructure	Physical & virtual cards, JIT funding, BNPL, fraud tools	40+ countries	Powerful APIs, enterprise scale, used by Square, Uber, Klarna, Doordash
Thought Machine	Cloud-native core banking platform	Vault Core engine, smart contract products, real-time ledger, Vault Payments	Global (used by Tier 1 banks worldwide)	Smart contracts, core replacement for legacy banks, used by JPMorgan & Lloyds
Unit	U.S.-focused embedded banking & lending	Accounts, cards, payments, lending, compliance, white-label app	United States only (multi-bank setup)	Fast launch (3–6 weeks), great dev tools, ideal for startups & vertical SaaS platforms

So, What Exactly Is BaaS?

Banking-as-a-Service (BaaS) is a model where licensed banks or financial institutions allow other companies (often non-banks like fintechs, retailers, or gig platforms) to offer banking products through their own apps or websites.

Using APIs, these companies can provide services like checking accounts, debit cards, loans, and money transfers without having to build a bank from scratch or handle the regulatory heavy lifting.

Behind the scenes, BaaS providers manage the complex infrastructure, compliance, and risk while the brand controls the customer experience.

What businesses gain with BaaS:

• New revenue streams from fees, interest spreads, or revenue-sharing with BaaS providers
• Increased customer loyalty through branded financial products like cards and rewards
• Faster go-to-market for launching financial services, often in weeks instead of years
• Deeper customer insights from transaction data and spending behavior
• Stronger competitive edge by offering value-added financial features within their platform

In short, this setup powers the financial tools people use every day, often without realizing it.

BaaS turns banking into a service layer: modular, scalable, and invisible to the user, but important for the experience.

The List of Top BaaS Platforms

1. Solarisbank

Solarisbank (now known simply as Solaris) is a Berlin-based fintech with a full German banking license and branches across Europe.

Founded in 2016 by fintech experts from FinLeap, it established itself as Germany’s first fully cloud-native bank, combining regulatory compliance and modern infrastructure.

Core Capabilities

• Digital banking & accounts: Offers white-labeled digital accounts with German, French, Italian, or Spanish IBANs, enabling SEPA transfers, direct debits, sub-accounts, savings, and real-time transaction data integration .
• Payments & cards: Supports customizable debit, prepaid, and credit cards, with full control over branding and transaction flows via APIs.
• Lending & BNPL: Enables consumer and SME financing, including BNPL services, through a “fronting” model. It executes loan origination, while the partner holds the receivables.
• KYC & Identification: Provides modular digital identity services (such as Bankident, video-ID, and eID) to streamline compliance in EU jurisdictions.

Why It Stands Out

• Full-service BaaS model: As a fully licensed bank in the EU, Solaris handles regulatory obligations (from AML/KYC to deposit insurance) while partners focus on UI/UX and customer engagement.
• Cloud-native core: Built on a mix of proprietary infrastructure and scalable platforms like Mambu and AWS, Solaris delivers agility, resilience, and rapid product iteration.
• Developer-friendly APIs: Offers comprehensive, RESTful APIs across all services, supported by sandboxes, real-time data access, and detailed technical documentation.
• Pan-European reach: Through passporting, Solaris can issue local IBANs and services across 30 EEA countries and has active legal entities in France, Italy, and Spain.
• Strong partnerships: Its platform powers products for Samsung, American Express, ADAC, Tomorrow, and more, supporting over 50 partners and issuing more than 1.1 million cards (e.g., ADAC)

2. Railsr

Railsr (formerly Railsbank) is a London-founded embedded finance platform that empowers brands to offer financial services (banking, wallets, cards, credit) via a single, unified API and commercial agreement.

It serves companies across fintech, sports, retail, travel, and more, supporting both startups and major enterprises like Wagestream, Plum, Wirex, and SingLife.

Core Capabilities

• Banking & wallets (BaaS): Provides white-label digital accounts, inter-ledger transfers, FX conversion, safeguarding, and full compliance support.
• Cards-as-a-service (CaaS): Offers issuance and management of virtual, prepaid, debit, and credit cards, with embedded lifecycle controls and BIN sponsorship. All within one API.
• Embedded credit & rewards: Includes lending capabilities and rewards point wallets that convert points to real money, enabling flexible loyalty programs.

What Makes It Stand Out

• One-stop integrated platform: A fully vertically integrated stack (from central bank clearing and payment schemes to compliance, fraud monitoring, and settlement) simplifies complex financial operations.
• Developer-centric & high speed to market: Known for seamless integration (“five lines of code” to connect) with robust sandbox environments and technical support.
• Global reach & scalability: Offers multi-currency accounts and services worldwide, powered through Visa/Mastercard direct issuing and compliance teams experienced with UK FCA and international regulators.
• High traction & fundraising: Over 250 B2B customers, 5.5 million accounts, and more than $100 million in equity funding from investors like Visa.

3. Marqeta

Marqeta is a global, cloud-native card-issuing and payment processing platform that empowers businesses to build customizable debit, credit, and prepaid card programs via a single, open API.

Founded in 2010, it has become a go-to choice for fintechs and large enterprises alike, powering over $291 billion in total payment volume in 2024, with $84 billion TPV in Q1 2025 alone (up 27% year-over-year).

Core Capabilities

• Flexible card issuance: Instantly create virtual and physical cards with dynamic spend controls, 3D Secure, tokenization, and Just‑in‑Time (JIT) funding.
• Robust APIs & developer tools: Features a comprehensive RESTful core API, extensive webhooks for real-time monitoring, SDKs, and sandbox environments that enable launch timelines measured in days.
• Embedded finance solutions: Supports “buy now, pay later” (BNPL), real-time payouts, and loyalty/reward card programs tailored for verticals like travel, retail, and gig economy.
• Risk & compliance: Offers built-in fraud mitigation, risk controls, and full compliance support (certified for PCI DSS, SOC 1/2, and maintaining 99.99% uptime globally).

Why It Stands Out

• AI-Driven innovation: Positioned at the forefront of using AI in payments, employing AI for dynamic fraud detection, hyper-personalization, and agentic automation.
• Scale & reliability: Processes hundreds of billions annually with enterprise-grade resilience (99.99% uptime), cloud-first architecture, and multi-region failovers.
• Global reach & velocity: Certified across 40+ countries, enabling card programs to go live within weeks: ideal for clients scaling internationally.

4. Thought Machine

Thought Machine is a London-based fintech that builds next-generation core banking infrastructure for banks and fintechs.

Its flagship product, Vault Core, is a cloud-native, API-first core banking engine designed to replace outdated legacy systems.

Founded in 2014, the company aims to give financial institutions full control over their products through smart contract-driven architecture.

Core Capabilities

• Vault core: A cloud-native core banking engine built from scratch to run across any cloud (public, private, hybrid). It supports real-time ledger operations, microservices architecture, and is API-first.
• Smart contracts engine: The Universal Product Engine allows banks to design, modify, and launch any financial product (accounts, loans, mortgages, multi-currency wallets) through code-based smart contracts, without touching core system logic.
• Vault Payments: A complementary cloud-native payments platform supporting global payment schemes, including card issuance and routing, integrated seamlessly with Vault Core.

Why It Stands Out

• Unmatched flexibility with smart contracts: Banks gain full control over product logic, enabling dynamic creation and modification of financial offerings without vendor dependency.
• Real-time, cloud-scale resilience: The platform operates continuously with high availability, horizontal scalability, and event-driven architecture, minimizing downtime and operational risk.
• Proven enterprise adoption: Trusted by Tier 1 and challenger banks such as JPMorgan Chase, Lloyds, Standard Chartered, Intesa Sanpaolo, and Atom Bank, vaulting Thought Machine to leader status in Gartner’s 2025 Magic Quadrant for Retail Core Banking.

5. Unit

Unit is one of the fastest-growing BaaS platforms in the U.S., enabling software companies to embed banking services like accounts, cards, payments, and lending, all through a single API and compliance layer.

It’s widely adopted by U.S. startups due to its developer-friendly setup, rapid launch timelines (as little as 4–6 weeks), and built-in compliance support.

Core Capabilities

• Full-stack banking & lending APIs: Enables businesses to launch FDIC‑insured checking & savings accounts, branded debit and credit cards (virtual & physical), ACH, wires, real-time payments, and working capital. All via a single API.
• White‑label app & developer tools: Offers a ready‑to‑launch, fully branded front‑end that customers can customize over time, alongside SDKs, extensive documentation, sandbox testing, and dashboard management.
• Compliance & bank partner network: Works with multiple U.S. banking partners to simplify onboarding, compliance (KYC/AML, PCI-DSS, SOC), and reliability, handling regulatory complexity so platforms don’t have to.

What Makes It Stand Out

• Fast time-to-market: Businesses can go from idea to launch in as little as 3 weeks using Unit’s “zero-build” solution or choose deeper customization later.
• Designed for verticals & SMBs: Trusted by platforms like AngelList, Invoice2go, Homebase, Stride, and Relay, Unit drives user engagement and increases customer lifetime value by offering embedded banking tailored to niche needs.
• Multi-bank reliability & scale: With eight U.S. bank partnerships, Unit ensures capacity, redundancy, and faster onboarding across states, handling millions of API calls daily.

Why the BaaS Market Is Accelerating

– Technological Advances

New technologies are a major reason why the BaaS market is growing.

Microservices are replacing old, all-in-one banking systems with smaller, flexible parts that are easier to build, update, and scale.

Cloud infrastructure gives companies the power and flexibility to run these services cost-effectively.

At the same time, standardised RESTful APIs make it easy for different systems to connect, helping non-bank companies plug banking features into their products quickly and smoothly

– Regulatory & Compliance Dynamics

Changes in financial rules are helping BaaS expand.

In Europe, laws like PSD2 and Open Banking require banks to share customer data and support payments through APIs.

This has opened the door for more competition and partnerships.

To support this growth, regulators are setting up licensing programs and regulatory sandboxes that let fintech companies test new products faster while staying within safe and legal limits.

– Shifting Market Demands

More people and businesses now expect banking to be built into the services they already use.

In industries like retail, the gig economy, and B2B software, users want to manage money, get paid, or access credit without leaving the app they’re in.

Because of this, companies need faster ways to launch financial products.

BaaS platforms help by offering ready-to-use tools through APIs, so companies can go to market faster without building everything from scratch.

– Business Model Innovation

BaaS providers are also changing how they charge for their services.

Instead of only charging per transaction, many now offer subscription pricing that gives partners predictable monthly costs.

Some also use revenue-sharing models, where both the provider and the partner benefit as the business grows.

To stand out, BaaS platforms often include extra features like fraud checks, data tools, and help with regulations, adding more value beyond basic banking.

– Ecosystem & Partnership Trends

Partnerships are a big part of how BaaS works today.

Banks are teaming up with fintech companies. Banks bring licenses and trust, while fintechs bring tech skills and speed.

Many BaaS platforms also offer marketplaces, where third-party services can be added easily.

This lets businesses mix and match the tools they need, helping them build custom financial products faster and more efficiently.

5 Real World BaaS Use Cases

1. Neobanks Launching Faster

Neobanks – digital-only banks with no physical branches – use BaaS to get to market quickly.

Instead of building their own banking infrastructure, they plug into BaaS platforms to access core services like account creation, payments, and card issuing.

This saves time and money, helping them launch faster and compete with traditional banks by offering modern, user-friendly financial products.

Example: Fintechs like Chime or Plum rely on BaaS to offer core banking services without becoming licensed banks themselves.

2. Retailers Offering Branded Cards and Rewards

Retailers use BaaS to launch their own branded debit or credit cards with built-in loyalty programs.
These cards can offer points, cashback, or other perks tied to customer spending.

By embedding these services into their apps or checkout flow, retailers strengthen customer loyalty and capture more of their customers’ overall spending.

3. Gig Platforms Enabling Instant Payouts

For gig platforms, fast payments are key to keeping workers happy.

BaaS makes it possible to pay freelancers or contractors instantly (often within seconds) without relying on slow traditional banking processes.

This helps platforms stand out, improves worker satisfaction, and makes it easier to attract and retain users.

Example: Apps like Uber and DoorDash use BaaS-powered rails to offer real-time access to earnings.

4. Travel & E-commerce Platforms Embedding Credit Options

BaaS allows travel and e-commerce platforms to offer flexible payment tools like buy now, pay later (BNPL) or in-app credit wallets.

This improves the checkout experience and increases conversion rates for large purchases.

Example: A travel booking site might offer BNPL (buy now, pay later) financing at checkout, powered by embedded lending APIs from a BaaS provider.

5. SaaS Platforms Adding Banking Features

Vertical SaaS companies are embedding banking into their platforms to add more value and grow revenue.

Using BaaS, they can offer financial tools like business accounts, cards, and loans directly to their customers.

Example: A payroll or invoicing app can let users send payments, issue business cards, or open accounts, without switching platforms.

What Can Go Wrong: Risks in Banking-as-a-Service

1. Data Security & Fraud Prevention

In the BaaS model, sensitive financial data flows between banks, BaaS providers, and end-user apps. This distributed setup increases the risk of cyberattacks or data breaches.

Strong data protection is key: this includes end-to-end encryption, multi-factor authentication, real-time transaction monitoring, and smart fraud detection systems.

A single security failure can damage user trust and hurt the reputation of the entire platform.

2. Staying Compliant Across Different Countries

BaaS providers often operate in multiple regions, each with its own set of financial rules, such as KYC (Know Your Customer), AML (Anti-Money Laundering), and data privacy laws.

Keeping up with these changing rules requires deep legal knowledge and constant monitoring.

Without strong compliance systems in place, providers risk heavy fines, reputational damage, or being shut out of key markets.

3. Balancing Flexibility with Standardisation

BaaS platforms must offer enough flexibility for companies to tailor services to their needs while still keeping a core system that’s stable, secure, and cost-effective.

Standardised solutions are faster and cheaper to launch, but might not fit every use case. On the other hand, too much customisation can slow things down and raise development costs.

The best approach is a modular setup: flexible enough to adapt, but built on a solid, shared foundation.

Conclusion & Where the BaaS Market Is Headed Next

Major BaaS providers like Solaris, Railsr, and Marqeta are changing how financial services are built and delivered.

Instead of creating everything from scratch, companies can now add banking features like payments, accounts, or cards directly into their apps using BaaS tools.

This marks a shift toward invisible, built-in banking, where users manage money as part of their everyday digital experience, without using a separate bank app.

Looking ahead, AI and automation will play a growing role.

Smarter tools will help with things like fraud detection, faster decision-making, and real-time foreign exchange, making global transactions quicker and more accurate.

Overall, BaaS is moving toward a more connected, intelligent, and flexible system, powered by new technology and strong partnerships between fintechs, banks, and software platforms.