Oxygen Temporarily Suspends Banking Services:
- Service Suspension and Account Closure:
- San Francisco-based digital banking platform Oxygen has “temporarily suspended” its banking services.
- The company initiated the “account closure process” on March 8, with account closures for consumers and business users scheduled for March 29.
- Transition Focus:
- Oxygen states that it is “only temporarily pausing Oxygen Banking” to redirect its focus towards health insurance solutions.
- CEO David Rafalovsky sees an opportunity to redefine their role amid industry changes.
- Transition Details:
- Customers will retain access to their accounts until March 29, and any remaining balance after this date will be returned via check within 45 days.
- Fund deposits into Oxygen accounts were halted from March 16, and all services related to the Oxygen Savings Account will be discontinued by March 21.
- Focus on Health Insurance:
- Oxygen is set to launch Oxygen Health, a health insurance offering, by the end of March.
- Described as a “comprehensive, affordable health plan,” Oxygen Health aims to integrate health with financial solutions.
- Transformation and Funding:
- Oxygen is undergoing a “transformation” to deliver greater value to customers.
- The company secured $20 million in Series B funding in February 2023 from investors including Y Combinator, Rucker Park, and Possible Ventures.
- Background:
- Founded in 2017, Oxygen initially focused on providing banking services, including current and savings accounts, money transfers, and cashback rewards.
- The temporary pause in banking services aligns with Oxygen’s strategic shift toward health insurance solutions.
