Paris-based payment infrastructure provider Fintecture has raised $7.5 million in seed funding. The company is seeking to eliminate the limitations caused by a half-century-old system that was built around multiple intermediaries.
The round was led by Target Global with Samaipata and Société Générale participating. Individual investors included operators and founders of Adyen, Affirm, American Express, Facebook Payments, Google, PayPal, and Snapchat.
The seed round is expected to accelerate the company’s deployment and goal of reaching 10,000 merchants as well as recruiting 30 new roles, and develop new service offerings, including the increasingly popular Buy Now Pay Later capability.
“We are excited to work with the Fintecture team as they deliver on their impressive vision for the next-generation payment rails to offer both merchants and buyers a frictionless, secure, and less costly payment processing alternative to incumbent solutions,” comments Target Global partner Dr. Ricardo Schäfer. Fintecture was founded in 2017 by Faysal Oudmine and Tatiana Rozoum and commercially launched in 2020, the company is licensed as a payment institution in 30 EEA countries and has developed API integrations in most banks across Europe.
Capitalising on technological and regulatory changes in the banking industry, one being 2018’s Payment Service Directive (PSD2), Fintecture created a series of APIs that integrate with banks, thereby creating the missing direct link between merchants and their customers, providing for a simpler, safer, and cost-efficient mechanism.
Every year merchants face a stark reality; their bottom line is cut into via chargebacks, fraud, and punitive fees. On a global scale, this amounts to a $100 billion “industry” for payment providers.
Add to this that 20% of all online card payments are declined due to card ceilings and technical errors, you’ve got an industry rife to be streamlined and optimised.
“The payment industry is going through a deep transformation. The payment infrastructure we deploy is to traditional payments what smartphones are to cell phones: fund transfer is the basis, but the added value lies in the adjacent services,” explains Oudmine.