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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
With digital rising to the preferred channel for audiences across the globe, it is more important than ever for firms to manage their brands’ digital presence. Organizations no longer need to just worry about sending out consistent messaging, they also need to ensure that the information that search platforms are sharing about them is correct and consistent in order to uphold their reputation
Earlier this fall, Finovate Research Analyst David Penn spoke with Stuart Greer, VP of Enterprise Sales at digital presence platform Yext to get an idea of how the company not only helps brands manage their reputation, but also with managing information on data aggregators about their physical locations, setting up , and more.
“One of the biggest things I’d say that large enterprise financial services companies deal with… is their online presence across all of the platforms, said Greer. “Yext is a digital presence platform that essentially helps multi-location businesses. When you think about multi-location businesses, you can think of banks, ATMs, wealth advisors, insurance agents– anyone who has that presence online.”
Yext was founded in 2006 to help brands with multiple locations manage their digital presence. Companies can leverage Yext’s platform to ensure they deliver accurate, consistent information, while connecting with customers across the globe via digital channels. The New York-based company leverages AI to automate workflows at scale and provide actionable insights to do everything from enhance SEO to manage social media reputations. Michael Walrath is CEO.
Payfinia has launched a new Credit Union Service Organization (CUSO) to help credit unions modernize their payments experience.
The CUSO is launching in partnership with Star One Credit Union, which invested $4.5 million in the organization.
Payfinia’s IPX platform will play a key role in the CUSO, helping organizations leverage FedNow to offer instant payments while providing fraud prevention.
Payfinia, which was recently spun out of digital banking tools provider Tyfone, unveiled it has launched a Credit Union Service Organization (CUSO) called the Payfinia CUSO. The aim of the new Payfinia CUSO is to “support payments modernization solutions and embedded fraud controls through an open payments platform for credit unions and industry partners.”
The launch comes in partnership with California-based Star One Credit Union, which invested $4.5 million in the organization. Star One Credit Union originally partnered with Payfinia parent company Tyfone to build Instant Payment Xchange (IPX), a payments-as-a-service (PaaS) framework to send and receive instant payments via FedNow.
Interestingly, Star One Credit Union used IPX’s direct integration with Tyfone’s nFinia Digital Banking Platform to send the $4.5 million in Seed funding. Payfinia used IPX’s fraud prevention capabilities to tailor user controls and permit higher transaction limits, allowing the funding to be sent in $500,000 increments to its account at U.S. Bank. Each transaction settled in less than five seconds.
“Star One is proud to support Payfinia and its vision of making instant payments accessible to all account holders in the U.S.,” said Star One CEO Gary Rodrigues. “The IPX solution empowers our members to take control of their cash flow. So far, the IPX solution has displaced 25% of same-day ACH transactions, with 53% fewer fraud losses compared to same-day ACH and an 83% reduction in operational overhead for P2P payment networks.”
The IPX platform was originally launched by Tyfone in July of 2023 in conjunction with the Federal Reserve’s FedNow instant payment service. Since launch, IPX has converted nearly 30% of same-day ACH credit transactions into send transactions on push instant payment systems, routing existing payment solutions through networks like FedNow.
As part of today’s announcement, Payfinia is also partnering with firms— including core processors, third-party digital platform providers, and fintechs— to help them leverage IPX to embed instant payment capabilities within their digital offerings.
“Limited resources, legacy systems, fraud mitigation, and costs to implement new payment services are primary challenges that hinder community-based institutions from adopting instant payment capabilities,” said the Payfinia CUSO General Manager Keith Riddle. “Payfinia is building an ecosystem that overcomes these limitations, enabling an open-provider approach that meets the diverse needs of community financial institutions. The IPX platform provides institutions with scalable, effective and affordable payment solutions.”
The launch of the Payfinia CUSO is a valuable addition to the CUSO landscape, as it will address the growing demand for instant payments and payment modernization among credit unions. Historically, credit unions have faced challenges in adopting real-time payment capabilities due to limited technological resources, legacy systems, and the high costs that come with upgrading technology.
Because Payfinia’s CUSO is an open payments platform, it offers credit unions an approachable and affordable path to instant payments. The open-provider approach differentiates Payfinia’s CUSO from other CUSOs because it facilitates collaborations among core processors, digital platform providers, and fintechs.
Paychex launched Paychex Funding Solutions, expanding its offerings into small business lending to give SMBs quick access to funds via invoice factoring.
Paychex Funding Solutions supports B2B companies by providing capital based on customer creditworthiness to help them cover payroll, vendor payments, and growth needs.
Paychex had previously offered small business funding in partnership with Biz2Credit.
Payroll, benefits, and HR company Paychexannounced its expansion into small business lending. Called Paychex Funding Solutions, the new offering gives small-and-medium-sized businesses (SMBs) fast access to the funds they need.
The new lending product will offer businesses capital based on their total assets through invoice factoring. The solution is aimed to help B2B-focused companies meet payroll, pay vendors, and fuel growth. Applicants do not need to be a Paychex payroll client to qualify.
“Lack of capital is the top reason that small organizations go out of business – and meeting payroll obligations can be one of the biggest hurdles, regardless of the economic climate,” said Paychex Senior Vice President of Operations and Customer Experience Liz Roaldsen. “Quick access to capital when a company needs it can be the difference between a business being able to remain open or closing its doors.”
Paychex Funding Solutions offers an alternative to traditional bank loans, which often have difficult approval processes and restrictive obligations. The company’s streamlined underwriting and approval process makes decisions partially on the creditworthiness of a business’s customers. By leveraging the data around applicants’ customers, Paychex is able to service businesses that might not normally qualify for traditional loans.
In addition to using unique data in its underwriting process, Paychex will also offer its small business lenders a one-on-one consultation to evaluate their goals and finances, access to a funding specialist for customized solutions, and a team to offer guidance and support on funding options.
This is not Paychex’s first dip into the small business financing world. The company already offers users access to funding via a partnership with Biz2Credit, a revenue-based financing platform with a network of more than 1,200 lenders. Additionally, Paychex has a Paychex Promise membership service that provides payroll protection, business credit building tools, and more.
After what seems like years of speculation, buy now, pay later (BNPL) leader Klarna has filed for its IPO with the U.S. Securities and Exchange Commission.
The Sweden-based company is being quiet about details, however. Klarna released a five-sentence press release with very little color. “This press release is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended (the “Securities Act”), and shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities,” the release plainly stated. “Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act.”
Given its presence in the BNPL space, as well as its lofty valuation, which peaked at almost $46 billion in 2021, there has been a lot of interest in Klarna’s IPO plans. Here are five key things to know about Klarna’s IPO, what it signals for the market, and what it could mean for both investors and customers alike.
The IPO has been in the works for years
Klarna was founded in 2005 and first hinted at an IPO in 2019 in an interview with Bloomberg. At the time, company CEO Sebastian Siemiatkowski mentioned that the company was considering an IPO within the next one to two years, depending on market conditions.
Since then, Klarna has seen significant growth. The company added to its BNPL tools in 2020 with the launch of its own shopping platform that hosts half a million retail partners who list goods across a range of categories. Today, Klarna’s retail site counts 150 million shoppers– 40 million of which are U.S. based– who make two million transactions on its platform each day. Overall, the company facilitates two million transactions per day for its 85 million active customers.
Klarna’s valuation peaked at $46 billion, but won’t reach that figure at its IPO
Klarna’s valuation has fluctuated over the past four years. At its peak, the company was valued at $46 billion in June 2021, making it the most valuable private fintech company in Europe. In 2022, however, the company’s valuation dropped to $6.7 billion.
While Klarna has not disclosed the valuation it plans to reach for its pending IPO, Fortune estimates the company could earn a valuation of about $14.6 billion. This figure is based on a move that Klarna shareholder Chrysalis Investments made in October to increase the value of its stake in the company to £120.6 million ($154 million).
Some of Klarna’s competition has already gone public
Klarna’s eventual IPO will follow in the footsteps of some of its competitors in the BNPL space who have already made their public debuts. California-based Affirm went public on the NASDAQ in early 2021 and now holds a market capitalization of $17.7 billion, while Australia-based Afterpay was acquired by Square (now Block, Inc.) in a 2022 deal valued at $29 billion. Sezzle, which originally went public on the Australian Stock Exchange, listed on the NYSE in 2023. Block also owns BNPL pioneer Afterpay, which went public on the Australian Securities Exchange in 2016 before the $29 billion acquisition.
Klarna’s regulatory heat will likely increase
All across the globe, BNPL is not without its criticism. The payments technology has faced backlash because of its propensity to promote irresponsible spending habits. This has led to formal regulation in multiple countries, including the issuance of an interpretive rule from the U.S. Consumer Financial Protection Bureau earlier this year.
As a public company, Klarna will be subject to a higher standard and will face greater scrutiny to not only comply with evolving regulations, but also to create and uphold higher standards of its own to protect its customers. Klarna is already ahead of regulation, however, as the company has already implemented features incluing spending caps, a transparent fee structure, and financial wellness tools.
An IPO offers potential for growth
Going public will offer Klarna access to additional capital that the company can use to fuel expansion. This is particularly important in the U.S., where it competes with Afterpay, Affirm, and PayPal’s BNPL offerings.
The IPO may also enable Klarna to create additional revenue streams by launching more traditional products and personal financial management tools. This expansion could position Klarna into a global financial power player.
Western Union has launched its Media Network to help brands reach and engage with its diverse, multicultural customer base.
In addition to providing brands with valuable insights and audience segmentation tools, the Media Network also allows companies to advertise through Western Union’s website, mobile app, in-store screen network, and digital channels.
As part of a larger industry trend, Western Union joins Chase and PayPal in offering a media network, with each focusing on unique insights.
Global money transfer platform Western Unionunveiled plans for its Media Network business today. The new offering will allow companies to connect and engage with Western Union’s millions of diverse, multicultural users.
“For more than a century and a half, people around the world have trusted Western Union as their means to connect across borders through the power of money movement,” said Western Union CMO Bob Rupczynski. “Our intimate knowledge and long-tenured relationships with our customers are unique differentiators and a driving force behind our new Media Network business.”
The Western Union Media Network provides marketers with valuable insights into its clients, offering visibility into buyer personas and enabling the creation of targeted audience segments. By delivering multicultural brand messaging, the Media Network empowers brands to use this intelligence to engage consumers more effectively and enhance their products or services.
Companies that tap into Western Union’s Media Network will have the opportunity to collect and analyze data about Western Union customers. Using this data, Western Union can create key targeting strategies, including customized data pulled from its Agent network, and data regarding customers’ cultural ties, to improve ad efficiency and build addressable audience segments.
In addition to being able to access customer data, the Media Network will also allow brands to engage Western Union’s customers via the Colorado-based company’s website, mobile app, and at its digital out-of-home (DOOH) screen network that can be found at select retail locations. Audiences can also be reached through Western Union’s digital displays, online video ads, as well as commercials shown on TV networks and streaming services.
“We are excited to offer this opportunity to brands as an extension to their existing marketing efforts, providing a new way to actively engage with consumers, enhance brand affinity, and unlock revenue. And for our customers, I am proud that we are able to provide compelling offers from relevant brands in channels they trust,” Rupczynski added.
This isn’t the first time a financial services company has tapped customer data to launch a media network. Chase unveiled its Media Solutions arm earlier this year, while PayPal launchedPayPal Ads last month. Part of a growing trend, each of these networks uses its reach and access to consumer data and insights to help brands target their preferred audiences.
However, each differs in its specific approach and value proposition. For example, while Western Union is focused on offering data about users’ cross-border payment habits and preferences, PayPal’s ad network is more valuable for brands looking to reach online shoppers with a high intent to purchase. Chase Media Solutions’ ad network is a bit more similar to that of PayPal’s in that it uses first-party data from Chase cardholders to help brands create highly targeted campaigns. In contrast, Chase brings insight into customers’ purchasing behaviors across both online and offline settings, allowing brands to target based on spending categories and habits.
Western Union is not a firm I would have expected to be the next to launch a media solutions network. However, with decades of data and a strong physical presence across the globe, it makes a lot of sense. Not only will the launch prove profitable for the company, but it will also position Western Union as more tech-savvy and digital-first than its competitors.
Travelex is partnering with NCR Atleos to upgrade 600 ATMs across eight countries.
Travelex will replace its old machines with NCR Atleos’ SelfServ ATMs equipped with advanced software and Vision, a SaaS monitoring tool.
NCR Atleos will also facilitate Click and Collect functionality, which allows U.K. customers to pre-order currency online for fast, in-person pick-up at select airport ATMs.
Foreign exchange and travel services company Travelexannounced today it has selected NCR Atleos to replace a set of its ATMs. The new machines will replace Travelex’s old ones in locations across the U.K., Netherlands, Switzerland, Germany, Italy, Czech Republic, Australia, and New Zealand.
In an effort to refresh its international ATMs, the U.K.-based company is swapping out the hardware and software of its 600 ATMs across eight countries. In their place, Travelex will put NCR Atleos’ SelfServ ATMs loaded with the company’s software and Vision, a SaaS monitoring tool.
“Travelex is dedicated to simplifying our customers’ access to international money, however and whenever they choose, and our expanded partnership with Atleos directly supports this mission,” said Travelex Chief Customer Officer Simon Jackson. “By relying on the experts at NCR Atleos for the implementation of modern ATM technology, we gain efficiencies and streamlined operations while adding value for our customers, ensuring travellers across the globe have reliable, secure and easy access to their cash.”
The new ATMs will not only be able to support domestic currency transactions, but they will also offer enhanced capabilities that leverage the machines’ touch screens and barcode readers. Some areas will also offer ATMs with contactless readers, which enable customers to make withdraws by tapping a card or an NFC-enabled phone or smartwatch.
The SelfServ ATM also supports Travelex’s Click and Collect, a function to help U.K. customers pre-order foreign currency online at a favorable rate, then pick it up at one of 50 of Travelex’s airport ATM locations in the U.K. “We are making it possible for travelers to access currency exchange via self-service,” explained NCR Atleos Executive Vice President, Global Sales Diego Navarrete. “We are proud to support Travelex in enhancing their ATM infrastructure, ultimately continuing to expand financial access for consumers around the world.”
This is not the first time the two have teamed up. NCR Atleos has powered Travelex ATMs in other markets in the past. NCR Atleos previously supported Travelex ATMs in other geographies at airports and travel hubs.
Founded as NCR Corporation in 1881, the firm spun out NCR Atleos in October of 2023 to run as an independent company focused on ATMs. Headquartered in Atlanta, Georgia, NCR Atleos employs 20,000 people across the globe to facilitate hardware, software, and service for line of ATM-related technology.
Travelex’s integration of features like contactless transactions, touch screens, and barcode readers will set a new standard for ATMs. This reflects the industry’s focus on both improving efficiency and enhancing the customer experience.
The last couple of weeks have been full of merger and acquisitions. Will fintech continue its M&A streak this week? Stay tuned to find out. We’ll be adding the latest fintech news throughout the week as the space evolves.
BNZ has acquired open banking payments company BlinkPay to enhance its focus on real-time, bank-to-bank payment solutions across New Zealand.
Financial terms of the acquisition were not disclosed.
BlinkPay will maintain its original leadership and culture, with company Co-founder Adrian Smith appointed as CEO.
BNZ announced today it has acquired fellow New Zealander BlinkPay, an open banking focused payments company. Terms of the deal were not disclosed.
Under the agreement, BlinkPay Co-founder Adrian Smith will become the fintech’s CEO. BlinkPay will retain its original leadership and culture.
“As a Māori-led business, we bring a unique perspective to financial innovation. BNZ understands and values this – and they’re backing our vision while enabling us to retain our startup DNA,” said Smith. “Our kaupapa [strategy] has always been about making financial services work better for all New Zealanders. BNZ’s support gives us the resources to accelerate our mission and help grow the open banking ecosystem across Aotearoa [New Zealand].”
BlinkPay was founded in 2016 to offer seamless, secure, and instant bank-to-bank transfers by leveraging open banking. The company helps businesses provide their own customers with a more efficient way to make payments directly from their bank accounts. BlinkPay’s platform connects with major New Zealand banks via APIs that support real-time payments without the need for credit cards or other intermediaries.
With 250,000 customers, BNZ was an early leader in open banking. The bank first implemented open banking principles in 2018. Bank CEO Dan Huggins anticipates today’s investment will further BNZ’s open banking reputation and expertise.
“This represents the next phase in our journey,” said Huggins. “With BNZ supporting BlinkPay’s innovation and agility, we can accelerate the development of new products and services that will benefit all New Zealanders. We’re proud to be investing in a team that has proven their ability to innovate and deliver.”
Working together, BNZ and BlinkPay will create new open banking capabilities to improve the customer experience for both retail and commercial banks across New Zealand.
Nium has partnered with Partior, a blockchain-based fintech for clearing and settlement.
Through the partnership, banks can use Partior’s network to access Nium’s global payments infrastructure without needing additional API integration, offering seamless real-time transactions.
The move makes Nium the first payment service provider to join Partior’s blockchain-based network, enabling real-time cross-border payments, clearing, and settlement across 100+ markets.
Global payments platform Niumannounced today that it has partnered with blockchain-based fintech for clearing and settlement Partior. The move makes Nium the first payment service provider to join the Partior network.
Under the partnership, banks will be able to leverage Partior’s network to connect with Nium to conduct real-time payouts, clearing, and settlement to over 100 markets worldwide any day of the week. Banks will not need additional API integration to work with Nium, since it seamlessly integrates with existing systems to provide instant access to Nium’s cross-border payments network.
Co-headquartered in San Francisco and Singapore, Nium was founded in 2015 to provide banks, payment vendors, and businesses with access to payment and card issuance services. The company’s global infrastructure for real-time cross-border payments supports 100 currencies across 220+ markets. With regulatory licenses and authorizations in more than 40 countries, Nium offers card issuance services in 34 countries.
Not only will today’s partnership with Partior help Nium facilitate global transactions, it will also support new services, including intra-day FX swaps, cross-currency repos, programmable enterprise liquidity management, and Just-in-Time multi-bank payments for banks across the globe.
“Nium’s partnership with Partior brings us closer to becoming the most connected payments network globally. By integrating with advanced networks, such as Partior, we are ensuring that financial institutions can quickly and easily access our real-time payments infrastructure without the need for complex technical integrations,” said Nium Chief Payments Officer Alexandra Johnson. “Recognizing how resource-constrained financial institutions are, we’re eliminating barriers to using our network and increasing interoperability to deliver on our mission of having seamless and streamlined real-time payments to anyone, anywhere.”
Founded in 2021, Partior uses blockchain and distributed ledger technology to streamline digital payments, making them faster, more reliable, and secure. By leveraging the blockchain, Partior eliminates the need for manual reconciliation and account pre-funding, allowing financial institutions to access capital more efficiently and reduce operational overhead. The company’s network supports seamless, real-time clearing and settlement, empowering banks to optimize liquidity and enhance cross-border payment flows.
“Partnering with Nium marks a significant step in our journey to further advance the global payments landscape,” said Partior CEO Humphrey Valenbreder. “By combining Partior’s real-time blockchain settlement network with Nium’s vast global reach, we’re empowering financial institutions to break down long-standing barriers. Imagine a world where cross-border payments are instantaneous, transparent, and accessible to all. This is the future we’re building together.”
The demand for real-time payments is surging across the globe as both consumers and businesses increasingly expect instant access to funds. This boost is driven by regulatory support, the launch of FedNow in the U.S., the increased adoption of enabling technologies such as stablecoins, and rising global commerce. As more players add real-time payments, they will soon become tablestakes across the globe.
Alternative lending platform LendSaaS now integrates Ocrolus’ AI-powered document automation and fraud detection.
Through the partnership, LendSaaS customers gain access to Ocrolus’ automated document review, including bank statement analysis, which helps lenders make faster, more confident funding decisions.
The integration with Ocrolus will allow LendSaaS clients to more efficiently leverage data in everything from processing lending applications to accelerating loan origination and facilitating servicing processes.
Alternative lending origination and servicing software provider LendSaaS has teamed up with AI-powered document automation and analysis company Ocrolus this week. The strategic partnership will offer LendSaaS customers access to Ocrolus’ industry-leading document analysis, cash flow analytics, and fraud detection directly through the LendSaaS platform.
“LendSaaS is one of the leading platforms in MCA origination and servicing,” said Ocrolus CEO Sam Bobley. “Thanks to our new partnership, Ocrolus is now an embedded integration available within LendSaaS, allowing customers to achieve end-to-end automation.”
LendSaaS helps lending businesses succeed by offering tools to support everything from loan origination to servicing. The New York-based company offers daily collections through ACH and credit card processors, public data and credit searching, as well as merchant interviews for underwriting, detailed reporting, daily collections, and more. Founded in 2014, LendSaaS has funded $6 billion and processes more than $16 million in average daily ACH volume.
New York-based Ocrolus leverages AI to capture and analyze data from 1,000 different types of documents and digital forms. The company counts more than 400 clients, including Enova, PayPal, Brex, CrossCountry Mortgage, Plaid, and SoFi, who use the solution to detect fraud, analyze cash flows and income, and streamline decisions.
Under today’s partnership, LendSaaS customers will have access to Ocrolus’ technology that will enable them to automate all tasks, such as reviewing documents, including reviewing bank statements and processing independent sales organization (ISO) applications. LendSaaS expects the move will help its customers more efficiently offer businesses with capital.
“Businesses seeking working capital often opt for the first offer they receive. To compete in this fast-paced market, our customers need to be able to make quick and confident financial decisions,” said LendSaaS Owner and Founder Josh Carcione. “By partnering with Ocrolus, we’re working to eliminate the need for manual document review by providing digital access to high-quality data so our customers can get a competitive edge through quick, confident financial decision making.”
Global bank Standard Charteredunveiled this week that it has teamed up with cross-border payments fintech Wise (formerly TransferWise). The bank has selected Wise Platform, Wise’s global payments infrastructure for banks, to power international payments for SC Remit, Standard Chartered’s cross-border payment service.
Wise will facilitate fund transfers for SC Remit customers in Asia and the Middle East. Users will be able to send money in 21 currencies– including USD, CAD, EUR, GBP, SGD, HKD, and JPY. Wise will send the funds in seconds using its transparent, low-fee pricing model.
“We’re continually improving how we deliver exceptional banking experiences for our clients,” said Standard Chartered Global Head, Wealth Solutions, Deposits and Mortgages, and Chief Client Officer Samir Subberwal. “We chose to partner with Wise Platform due to their extensive currency coverage and stellar cross-border payments experience they are known for. This collaboration is a key step in enhancing our international payment services as we offer an even more seamless, faster, and efficient digital global payments experience to our clients.”
Standard Chartered said that the service will be available for SC Remit customers “in the coming quarters.” The bank also plans to expand the service to include more currencies, as well as into more markets.
Wise has been facilitating cross-border money transfers since it was founded in 2011. Today, in addition to its transparent, direct-to-consumer money transfer capabilities, Wise also offers a multi-currency account that allows users to save and hold funds in 50 different currencies, and send and receive money in 22 currencies. Wise holds more than 65 payment licenses, as well as six direct connections to payment systems.
Wise Platform, the infrastructure that Standard Chartered is leveraging, offers an API that allows banks and fintechs to embed cross-border payments capabilities into their existing website or app, allowing their customers to transfer 40+ currencies in 160+ countries. The majority (63%) of Wise’s cross-border payments are completed in under 20 seconds, while 95% take less than 24 hours. The U.K.-based company processes $154 billion (£118 billion) annually. Among Wise Platform’s customers are Monzo, N26, deel, and Shinhan Bank.
The topic of cross-border payments has accelerated in recent months, with traditional financial institutions and fintechs recognizing the need to compete by offering low-cost, rapid transactions across the globe. The rise of e-commerce, combined with new needs to pay remote workers, has led to a refreshed demand for cheaper, faster international payments. Today’s digital world has prompted consumers and businesses to expect speed and transparency when transacting, and banks are under new pressure to modernize their cross-border payment services to meet those needs.
Another factor that has brought cross-border transactions into the spotlight this year is the rise in stablecoin usage. As stablecoins become more mainstream and integrated into traditional payments infrastructure, they offer an international funds transfer solution that combines speed, cost-effectiveness, and digital accessibility.
Wise, however, currently does not use stablecoins and has not implemented blockchain technology into its operations. Instead, Wise has established a highly efficient, transparent, and compliant platform that meets compliance standards worldwide. It is unlikely that Wise will seek to leverage stablecoins any time soon, though, as adding stablecoins to its strategy could introduce new regulatory and operational complexities, which could potentially outweigh any benefits.
Melio raised $150 million in a Series E round led by Fiserv.
Today’s round values the accounts payable and receivable platform at $2 billion.
The company’s 10x revenue growth over the past three years reflects its expansion into medium-sized businesses and new partnerships, significantly broadening its customer base.
Melio and Fiserv initially began working together in 2023, when the two launched a combined solution called CashFlow Central.
Accounts payable and receivable platform Melio has landed $150 million in a strategic Series E round led by Fiserv. The investment, which brings the company’s total raised to $654 million, also saw strategic contributions from Shopify Ventures and Capital One Ventures, which are expected to boost Melio’s partnerships. Accel, Bessemer, Coatue, Frontline Ventures, General Catalyst, Latitude, and Thrive Capital also contributed.
Notably, today’s round values Melio at $2 billion. This comes as the New York-based company saw a 10x increase in revenue in the past three years. This growth was fueled by Melio’s move to add medium-sized businesses (SMBs) to its customer base, as well as its addition of new partners.
Melio and Fiserv initially began working together in 2023 in a partnership that combined Melio’s accounts payable and receivable workflows with Fiserv’s payment capabilities and biller and merchant network. The combined solution, called CashFlow Central, allows Fiserv’s 3,500+ financial institution clients to help their SMB customers manage their payment operations and cash flow needs.
“Through our partnership with Melio, CashFlow Central is designed to create significant value for financial institutions and their business clients or members,” said Fiserv Head of Financial Institutions Group John Gibbons. “We are excited to leverage our unique position at the intersection of financial institutions and businesses to deliver a comprehensive, integrated experience that enables our clients to compete and grow their portfolios with this important segment of their communities.”
Melio was founded in 2018 with the mission to empower small businesses and their accountants by enhancing cash flow and streamlining payment operations. The company’s platform simplifies both accounts receivable and accounts payable processes. It allows businesses to manage payments and invoices. Melio integrates with QuickBooks, Xero, and Amazon Business to enable features such as ACH transfers, automated bill payments, and the creation of virtual payment cards. Integrating with a business’ existing accounting tool not only reduces their administrative burden, but it also provides them with greater control, visibility, and flexibility over their finances.
“We’re proud to witness our embedded solution helping our partners better service their business clients, leading to increased deposits, higher engagement and creating new revenue streams,” said Melio CEO and co-founder Matan Bar.
