Many frequent flyers use Plastiq to pay bills with a credit card, they charge the card (and you earn miles) and they pay electronically or via check. Their fees have increased in recent years and are now up to 2.9%, but some find it worthwhile for paying things like mortgages and car payments that can’t otherwise be charged – especially when earning an initial bonus for a new credit card, or earning high spend bonuses and credit towards elite status.
I first covered them in 2015. They’ve been around for about 8 years. The company announced plans to go public via SPAC last year, but the deal terminated in March. They faced a brief interruption in service when Silicon Valley Bank failed. Now they’ve filed for chapter 11 bankruptcy protection in Delaware.
- They expect to run a sale process and have a stalking horse bidder in Nasdaq-listed commercial payments company Priority Technoogy Holdings.
- Current secured lenders are reportedly prepared to put up $7.1 million in debtor-in-possession financing.
This is not a liquidation, and if all goes according to filings in day one proceedings there shouldn’t be an interruption in service. However their business model hasn’t worked, it seems, so it wouldn’t be surprising to see changes.
If you’re a Plastiq user it would be a good idea to monitor this, and be aware of outstanding payments in your queue. If they do make changes to the service you’ll need to adjust – at a minimum to ensure bills are paid properly on time.
(HT: Paul H)
[…] Plastiq has filed for bankruptcy and already has a vulture company that’s agreed to scoop up its assets, pending court approval. The payment processor was once a great arrow in the manufactured spender’s quiver, but the company’s unstated mission was to perfect the art of a slow death spiral and they succeeded spectacularly. Their bankruptcy shouldn’t be surprising ay after they failed their merger with the Colonnade SPAC which caused the SPAC to die too.Plastiq wasn’t without utility even as recently as this week, but maybe that’s changed. Personally I’m not going to send any further payments through the platform, but you’re all adults; do what’s best for you. (Thanks to VFTW) […]