“Can a creator-focused fintech become the full financial OS for the creator economy by layering banking, credit, payments, and bookkeeping on top of non-traditional underwriting?”
Founded in 2019 as a credit card company for content creators denied by traditional banks, Karat built its initial product — the Karat Black Card — using Stripe Issuing and Cross River Bank as issuer, using social and revenue metrics to set credit limits. After proving the model and issuing over $1.5B in credit, Karat pivoted from card-first to full-stack creator banking in 2025, launching business checking accounts (via Grasshopper Bank), bulk payments, invoicing, bookkeeping, and tax planning tools under one platform. The strategic shift transforms Karat from a monoline card issuer into the financial OS for the creator economy.
Karat discloses Grasshopper Bank, N.A. as its banking provider, according to the Embedded Finance Index 2026.
Karat does not disclose a bank charter of its own; its banking services are provided through Grasshopper Bank, N.A..
Karat processes payments through Stripe Issuing. Disclosed money-movement rails: ACH.
Karat's cards are issued through Stripe Issuing.
Karat's lending and capital products are provided by Cross River Bank.
The Embedded Finance Index 2026 maps 6 layers in Karat's stack: Payments / PSP (Stripe Issuing); Money movement (ACH); Banking / BaaS (Grasshopper Bank, N.A.); Card issuing (Stripe Issuing); Lending (Cross River Bank and Karat Visa Business Credit Card); Sponsor bank (Grasshopper Bank, N.A.).
Karat was founded by Eric Wei and Will Kim and is founded in 2019, headquartered in Los Angeles, CA, USA.
Karat has raised $98M+ in total (latest round: Series B extension, 2023).
Get a read on where your own stack stands against Karat and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.