Forty-two million Americans receive SNAP benefits, a figure that translates to a steady, government-guaranteed flow of consumer spending. Forage, a San Francisco fintech founded in 2019, is building the payments infrastructure to change that. Its core product is a single API that handles the complex process of accepting Electronic Benefit Transfer (EBT) payments online, aiming to turn a trillion-dollar (estimated) market of "restricted payments" into a new revenue stream for merchants.
The Regulatory Wedge
Accepting SNAP benefits online requires explicit approval from the USDA's Food and Nutrition Service (FNS), specific PIN-entry flows, and deep integrations with a patchwork of state-level EBT processors [Y Combinator]. Forage's wedge is solving this regulatory and technical complexity end-to-end. The company is a PCI Level 1 payment processor and gateway dedicated to EBT, handling the full transaction lifecycle on its own platform [joinforage.com]. For merchants, this means they can implement a unified API and let Forage manage the compliance heavy-lifting, from securing FNS approval to ensuring transactions adhere to program rules. The result is a critical piece of financial infrastructure that enables online and in-app EBT SNAP and EBT Cash payments, including support for mixed baskets and split-tender transactions [PRNewswire].
A Narrow Field of Approved Players
The market structure plays to Forage's advantage. The USDA approves only a handful of third-party payment processors for online SNAP transactions. As of 2026, Forage is one of just three companies on that list, alongside payments giants Fiserv and FIS's Worldpay [Digital Transactions]. This creates a high-barrier, oligopolistic landscape where Forage competes not on a crowded battlefield but within a narrow, sanctioned corridor. Its focus is its differentiator: while the incumbents treat EBT as one line item in a vast portfolio, Forage's entire stack is built for this specific use case.
Traction and Key Partnerships
Forage's early traction is visible in its partnerships with some of the largest names in online food delivery. The company enables SNAP EBT payments on Uber Eats for chains like Save A Lot, and at participating Albertsons, Safeway, and Vons locations in California [joinforage.com, CB Insights]. Instacart also accepts EBT SNAP at Sprouts Farmers Market through Forage's infrastructure [instacart.com]. The company's team remains lean, reported at 17 people following its 2022 Series A [Forbes, Aug 2022].
| Founder | Role | Notable Background |
|---|---|---|
| Ofek Lavian | Co-founder & CEO | Former head of payments at Instacart; product/growth roles at DoorDash and Uber [TechCrunch, Mar 2022]. |
| Amit Golan | Co-founder | Background in engineering and payments infrastructure; previously co-founded Minute.ly [Forbes, Aug 2018]. |
| Jack Cho | Co-founder | Described as a technical co-founder [Y Combinator]. |
Where the Model Faces Friction
Forage's model, while clearly solving a hard problem, is not without its counterfactuals. The opportunity is large, but the path to scaling revenue faces specific pressures:
- Competitor response. Fiserv and Worldpay have established relationships with thousands of merchants and far greater resources.
- Regulatory dependency. Forage's entire business is built atop a federal benefits program. Changes to SNAP eligibility, benefit amounts, or approval processes could directly impact transaction volume.
- Sales motion complexity. Onboarding a merchant requires navigating both commercial agreements and government approval processes, which can lengthen sales cycles.
The company's answer likely hinges on execution speed and focus. By being the specialist, it can move faster for merchants who prioritize a smooth EBT integration over a generic payments suite.
The Next Funding Chapter
Forage last raised capital in 2022: a $22 million Series A led by fintech specialist Nyca Partners, with participation from PayPal, Y Combinator, Mucker Capital, and individuals like Instacart founder Apoorva Mehta [Forbes, Aug 2022]. Total disclosed funding stands at $22.63 million [CB Insights]. The next logical milestone is a Series B, which would likely be anchored by further merchant adoption metrics and an expansion into adjacent government benefit programs. The question for investors will be whether Forage can translate its regulatory approval and technical lead into a standalone, venture-scale business, or if it becomes an attractive acquisition target for a larger fintech or grocery platform seeking to own this critical infrastructure layer.