Mercury, a US-based banking platform serving startups, has announced the acquisition of Central, an AI-native payroll and benefits platform founded in 2023 and backed by First Round Capital and Y Combinator.
As part of the deal, the Central co-founding team, including Josh Wymer, Pranav Kashyap, and Nilay Modi, will join Mercury as part of the transaction.
Central uses a combination of AI agents and human experts to manage payroll, benefits, paid time off, HR administration, and state compliance for startup founders. The company has processed more than USD 175 million in payroll and serves nearly 500 startup customers, of whom over 250 were already Mercury customers prior to the acquisition.
Strategic rationale and product integration
For Mercury, payroll represents a significant gap in its financial operations coverage. Among Mercury customers that run payroll, the expense accounts for approximately 20% of total spend. The acquisition is designed to bring payroll within the Mercury platform rather than treating it as an externally connected tool, consistent with Mercury's broader strategy of integrating financial workflows, including its corporate card, bill pay, invoicing, and reimbursements, directly into its banking infrastructure.
Furthermore, Mercury states it serves one in three US startups. When it comes to Central, its model distinguishes itself from conventional payroll software by deploying AI agents and human experts to handle the work on behalf of founders, rather than providing a dashboard that requires ongoing management by the user.
Central will continue to operate for existing customers during integration with the Mercury platform. Mercury has indicated it will share further details on the combined product experience as development progresses.
The news comes just a few months after Mercury applied for a national bank charter with the OCC and for federal deposit insurance with the Federal Deposit Insurance Corporation (FDIC). The move sought to support the company's long-term investment in developing a financial foundation for organisations and individuals looking for banking solutions that delivered software facilitating speed and efficiency, as well as the stability of a regulated institution.
