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MVB Financial (MVBF) Increases Stake in Interchecks to 16%

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MVB Financial Corp. (MVBF - Free Report) along with MVB Bank, Inc. has increased investment in Interchecks Technologies, Inc., a leading payment disbursement platform. With this, MVB Financial’s interest in Interchecks has increased to 16%.

MVB Financial has also entered a management contract with the Interchecks team for product development and management of the launch of GRAND — MVB Financial’s digital account for gaming and crypto.

Interchecks is a privately-held payout startup, which simplifies and improves payouts and 1099 compliance for companies around the globe. The company offers a variety of on-demand payout options like instant deposit, direct deposit, digital check and paper check.

Interchecks has also been successful in the gaming industry segments of online sports betting, daily fantasy sports and iGaming. Considering this is a crucial space that MVB Financial focuses on, the increased investment is likely to strengthen its portfolio.

It acquired its initial stake in Interchecks in 2019 and the increasing stake in the payout startup reiterates its focus on fintech investments. MVB Financial’s overall Fintech investment portfolio has generated a cumulative IRR of 200% since 2016. Hence, the company’s effort to expand the portfolio is a strategic fit.

Interchecks’s real-time payment infrastructure, built in partnership with Visa Direct, is used by MVB Financial’s largest clients and more than 30 gaming companies that currently use its banking services.

Larry F. Mazza, president and CEO of MVB Financial, noted that Interchecks’ “pioneering payment disbursement technology is a natural fit with our focus on the gaming industry at MVB. Following up on our initial early investment, our increased investment and formal business partnership with Interchecks also highlight the success of the Fintech ecosystem we’ve built at MVB, which we will continue to foster in the coming years."

Over the past six months, shares of the company have rallied 18.3%, outperforming 11.9% growth recorded by the industry it belongs to.

 

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It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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