Investors include Deutsche Bank– whose participation was announced in August– as well as new and existing strategic and angel investors. Modo will use the funding to grow its team and expand on its offerings.
Deutsche Bank will leverage Modo’s technology to boost its digital business-to-business and business-to-consumer payments and extend its payment capabilities into non-traditional channels such as the mobile wallets and peer-to-peer networks of Alipay, Paypal, M-Pesa, and WeChat.
Rick Striano, managing director of digital product development at Deutsche Bank said the bank is committed to bringing continued innovation to its customers. He anticipates that partnering with Modo and other fintechs will enable the bank to accomplish that goal faster. “We believe Modo has developed a compelling proposition to address the needs of an evolving payments landscape and increasingly digital economy. We are proud to add them to our list of partners,” said Striano.
We have some big ideas for the future of the payments industry, and having these world class investors in our corner puts us that much closer to our goal of reducing friction in payments for everyone,” said Modo CEO Bruce Parker, who founded Modo in 2010. “Completing our Series A is a great way to confirm that we’ve built something great, and this is just the beginning of our growth phase,” he added.
Instead of integrating its solutions, Modo focuses on interoperability. The company exchanges payment data across platforms on behalf of banks, payment networks, and providers, enabling them to store, share, and track payment event data. Modo presented at FinovateFall 2016, where it showcased its Modo Digital Payments Hub. In the past year, the company’s transaction volume has grown 7x. In August, Modo partnered with Etihad to create a loyalty solution as a part of the FinTech Abu Dhabi Innovation Challenge.