← State of Embedded Finance 2026

Plastiq

“Can a credit-card-based vendor-payment bridge become the embedded financial OS for SMB accounts payable and working capital?”

Founded2012
HQSan Francisco, California, United States
FoundersEliot Buchanan
Total raised$472.2M
Latest roundAcquired by Priority Technology Holdings
IndustryFintech / SMB banking
The story

Founded in 2012, Plastiq pioneered credit-card-based vendor payments for SMBs — allowing businesses to pay suppliers by card even when vendors don't accept cards. After raising $472M+ and attempting a SPAC merger in 2022, Plastiq was acquired by Priority Technology Holdings and now operates as 'Plastiq, Powered by Priority.' The company expanded from pure bill-pay into embedded finance through Plastiq Connect APIs (enabling platforms to embed payment and working capital features) and added short-term financing for SMBs, positioning itself as a B2B payments and working capital platform rather than a simple payment bridge.

Last 12 months
2026-02
Product timeline
2012
Plastiq founded in San Francisco as a B2B payments platform enabling SMBs to pay vendors by credit card.· pivot
2020
Raised $75M Series D led by B Capital Group, bringing total funding to over $140M.· banking
2022
Launched Plastiq Short-Term Financing, providing SMBs instant access to working capital within the payment flow.· lending
2022
Announced SPAC merger with Colonnade Acquisition Corp. II (NYSE: CLAA) valuing the combined company at ~$4B enterprise value.· ipo
2022
Upgraded Plastiq Connect to offer B2B embedded finance APIs enabling platforms to embed payment and working capital capabilities.· pivot
2026
Operating as Plastiq, Powered by Priority under Priority Technology Holdings, Inc., the 4th largest non-bank payments business in the US.· acquisition
The stack
Payments / PSP
Priority Technology Holdings (self-operated)
Lending
Plastiq Short-Term FinancingWorking capital line of credit
Accounting
QuickBooks Online
Accounting gap: minor