Nordic challenger bank Lunar is intensifying its Banking-as-a-Service (BaaS) initiatives by launching a new standalone entity named Moonrise for its banking services division.
The European BaaS market is anticipated to undergo significant growth, projected to reach €100 billion by 2030, according to Lunar. Currently, Lunar Banking Services processes over 10,000 transactions daily, boasting a transaction volume run rate of €5 billion.
With the establishment of Moonrise, the bank aims to simplify financial connectivity for payment businesses, facilitating seamless operations across Denmark, Norway, and Sweden through a single API. This initiative is intended to assist challenger banks and fintech companies in overcoming market entry barriers in the Nordics, enabling them to compete against traditional institutions that have long dominated the region.
Ken Villum Klausen, CEO of Lunar, stated, “The Nordic market is extremely profitable yet difficult to access. For decades, it has been dominated by the same players operating in a stale system. Moonrise is here to change that. By breaking down these barriers, we enable international fintechs and banks to access the Nordics.”
The separation into two entities is designed to allow Lunar to continue its successful trajectory in retail banking while empowering Moonrise, ensuring that both can operate independently with the necessary resources and focus.
Villum Klausen added, “By taking the first step towards a dedicated focus through a separate entity, we can sharpen our focus on enterprise payments, scale faster, and ensure both Moonrise and our retail banking arm thrive independently.”