Paytrix raises $18.3M to build its one-stop payment shop
Payments are one of the most fragmented of online services, a situation that is only compounded if your business does business internationally. A UK startup called Paytrix says it has raised $18.3 million in funding to build a solution to fix this: a single platform – and single contract – that lets its customers handle all the different processes from payment acceptance to payout. Allows you to manage payment options in one place. ,
The funding is a Series A and is being co-led by Uncommon Ventures, Motive Partners and Bain Capital Ventures. Bain was also part of Patrix’s previous £5.2 million round in May 2022 alongside Fin Capital, Better Tomorrow Ventures, Hambro Perks, Clocktower Ventures, The Fintech Fund, D4 Ventures and various individuals, all of whom participated in this round. have been , The company is not disclosing its valuation.
Arran Brown (CEO), Ed Addario (CTO), and Edward Harrison (CPO) co-founded Paytrix with collectively decades of experience in a range of well-known payments, FX, and other fintech companies, and this key Can Why has it been able to raise money now, during one of the most bearish times for venture markets in years, and a very tight market in e-commerce overall? The service doesn’t yet have full scope of licensing – there are plans for EMI for both the UK and Europe.
Brown said Petrix already has an FCA-approved payment institution license in the UK, “which is being upgraded to EMI … with a separate application for EMI being filed with the CBI in Ireland.” Both were applied for last year and are “progressing well” with a team to support it, including the former head of the authority at CBI as its chairman, and the former chief compliance officer of Square International. Are included.
Paytrix describes itself as a “payment curation” platform, and behind an API it offers its customers to integrate into its services, Brown tells me it relies on its own banking relationships in different countries. negotiates that lets it bypass traditional payment rails. Card payments and other payment services like Stripe as well as some new channels that have been emerging in recent years such as open banking standards.
As Brown describes it, Paytrix integrates directly with local payment plans through tier-one banks or locally integrated payment partners. Some of these have been disclosed – in the UK Modular Financial uses – and some Brown says in the EU and APAC “we are contractually prohibited from naming them.” As Paytrix is familiar-agnostic, he said, merchants continue to work with their card acquirers such as Stripe or whatever service is used, and Paytrix will enable local accounts, real-time FX and instant settlements “for merchants and Downstream beneficiaries to take”. payment care.
Payouts is what the company now focuses on: it currently processes 133 currencies and 200+ countries including real-time FX.
He says the arrangement cuts down on the number of third-parties with which traders or markets typically have to work, relationships that typically present not only cost but complexity and questions with buyers who are transferred to third-parties for payment.
Paytrix doesn’t handle incoming payments yet, so it works with whatever familiarity its customers already use — whether that includes open banking or another provider, and that’s “Step 2” for the company. Will, Brown said: “Enabling global collections that allow merchants without the burden of identifying, sourcing and contracting with local banks, or waiting for sufficient amounts to work with a tier-one bank. will allow them to collect funds in each of the markets, followed by the issuance of other payment options such as direct-to-cards and virtual cards.
Will it all work as advertised, of course, is yet to come.
“Paytrix has many customers,” Brown said, “but most of them are not allowed to be disclosed.” One is Fiorin, which is a business banking platform that provides various financial services to businesses; And the other is Cardstream, which is a payment gateway in Europe. Brown said others include a European ticketing marketplace and a global “employee of record” platform (for hiring and working with employees in international markets).
More generally, Brown said the company is targeting not only e-commerce companies, but others that need to process and manage (take and make) payments across multiple countries, such as payroll providers. The e-commerce opportunity is an interesting one: It’s not the top tier of players like Amazon — which will build and manage its own services — that it’s targeting, but the hundreds of online retailers and marketplaces that have more than $1 million in annual revenue. There is more but not necessarily the resources, operational or technical level, to manage multiple supplier relationships. Typically, Paytrix said its customers manage between 10 and 15 payment suppliers on average, so the pitch is that it could now be taken down to one.
But given the persistent problems in the market, and the track record and experience of the team here, it’s a bet investors believe is a strong bet.
“Patrix is addressing a critical need for businesses operating in an international market,” Matt Harris, partner at Bain Capital Ventures, said in a statement. “The complexity and cost of cross-border payments has long been a major pain point for companies scaling up, and Paytrix’s solution neatly tackles these challenges. We believe there is a global need for such a payment framework and we are excited to continue our support of Paytrix as they expand their solutions for businesses around the world.