- Aeropay raised $20 million in new funding for its pay-by-bank technology.
- The round, which boosts Aeropay’s total funding to $25 million, was led by Group 11.
- Aeropay also announced the launch of Aerosync, the company’s internally developed bank aggregator.
Chicago-based payments company Aeropay announced today it has landed $20 million in new funding. The Series B round, which boosts the company’s total funds to $25 million, was led by venture capital firm Group 11 and saw participation from Chicago Ventures and Continental Investment Partners.
Aeropay was founded in 2017 to help businesses move money in a faster, less expensive way using Aerosync, the company’s internally developed pay-by-bank technology. Launching today, Aerosync is Aeropay’s bank aggregator that enables customizable integrations via open APIs.
“Payments in most verticals operate on archaic systems filled with excessive fees and risks,” said Aeropay Founder and CEO Daniel Muller. “We’ve built a bank-driven payments network that protects businesses against fraud, saves them money, and gives their customers an easy way to pay. Put simply, we are building the next-generation payments network.”
Aeropay will use the funds to expand into new markets, including financial services, wellness, utilities, QSR, and property management. The investment will also help fuel new product offerings, build on strategic partnerships, and explore new opportunities.
“For years, we’ve searched for a company advanced enough to solve the pains and inefficiencies of the card payment market, arguably the last bastion of the traditional financial services industry,” said Group 11 Founding Partner Dovi Frances. “Aeropay has tackled the most complex technological and compliance challenges, making them the most likely player to seize upon this massive addressable market.”
Pay-by-bank has seen rising popularity across the globe in the past few years, as open banking fuels new possibilities. The technology holds the promise of reducing transaction fees for retailers. End consumers, however, may remain skeptical of pay-by-bank’s security and user friendliness.