ConnexPay, a payments gateway, has raised $20m through a series B funding round, which was led by card issuing platform Marqeta.
This fresh capital injection takes ConnexPay’s total funding raised so far to $35m.
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Since 2018, ConnexPay has been a customer of Marqeta, which also made an investment in the Series A funding round.
The present investment represents Marqeta’s first corporate investment since going public in June this year.
This investment will see Marqeta gain one seat on ConnexPay’s board.
Marqeta SVP for international, strategy & planning Renata Caine said: “ConnexPay’s platform solves for the complexity of marketplace and intermediary business models, which have to deal with convoluted money flows and constant margin pressure. We see a lot of possibilities around the optionality their platform provides for payment acceptance, delivery and timing, offering innovators the ultimate control over funds across multiple money movement rails.
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By GlobalData“ConnexPay’s ability to withstand the demands of COVID-19 in the travel vertical while growing and expanding their business to new verticals is a testament to their team and technology and we’re excited for what’s in front of this company.”
Set up in 2017, ConnexPay was developed for the travel vertical.
Following the disruption of Covid-19, the firm has built its transaction volumes back up above the levels before the pandemic, while also expanding its business into closer verticals such as e-commerce, commerce intermediaries.
ConnexPay claimed that it is the first company to link the two aspects of the payment ecosystem — card issuing and payment acquiring services.
In particular verticals, such as marketplace businesses or commerce intermediaries, ConnexPay can seamlessly link payments by serving as acquirer and issuer.
The company is claimed to have developed core technologies to make intelligent payment routing decisions, thereby enabling customers to gain more control over transactions.
ConnexPay plans to use the proceeds from the funding round to build out its business with online marketplaces and other commerce intermediaries, which form an important part of its current sales pipeline.
Furthermore, the proceeds will be used to expand the ConnexPay platform into Europe with increased hiring and technology development so that it can support several currencies and languages.
ConnexPay founder and CEO Robert Kaufman said: “ConnexPay was founded to transform the entire payments experience for the travel industry. We quickly discovered that the value of the connected ecosystem – which offers controls that resulted in reduced risk, improved cash flow, lowered the cost of accepting cards and allowed for easier reconciliation – had much broader application across many vertical markets.
“We’ve worked with Marqeta as a customer since 2018 and we know the value and payments expertise they bring to the table, so we’re excited about this new investment and what we can accomplish with them in our corner.”
