Visa Backs B2B Payments Startup Currencycloud in $80M Funding Round
- The UK-based company focuses on "embedded finance": providing payments solutions to companies rather than front-end users.
UK-based business-to-business Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term startup Currencycloud has raked in $80 million in funding from a number of strategic investors, including Visa Inc., BNP Paribas SA, SBI Group, Siam Commercial Bank, and the International Finance Corp. The results of the fundraising round were reported by Reuters on Sunday, January 26.
According to CNBC, Mike Laven, Currencycloud’s chief executive officer, said that the company has also partnered with Visa to provide its clients with access to Currencycloud’s products.
“Currencycloud is re-imagining how money flows around the global economy and embedding it into platforms of the future," Laven said in an official announcement.
“Transfer of value is fast becoming the newest layer in the modern technology stack, and Currencycloud is positioned to provide the infrastructure to make this happen. With these new strategic investors, we are well placed to be the go-to provider for the next wave of Fintech innovation."
The fundraising round also included cash from some of the company’s existing investors, including GV (formerly known as ‘Google Ventures’), Notion Capital, and Sapphire Ventures. The company has reportedly raised more than $140 million from investors and has processed over $50 billion in payments since it was founded in 2012.
We are really excited to announce our new investment! Take a read of our full press release for all the details. https://t.co/PrQE0wyQhd#payments #fintech #paytech
— Currencycloud (@Currencycloud) January 27, 2020
Laven told Reuters that the latest round of funding would be used to grow the company’s suite of products and to “dramatically increase our footprint in North America.” Currencycloud also currently operates in Europe and is seeking to expand into Asia.
Indeed, Laven explained to CNBC that while Currencycloud is not yet profitable, “our emphasis right now is not on profitability, our emphasis is on the strength of our offering and an expansion into other markets. The company is planning on opening an office in Singapore before the end of this year.
”My brand is invisible.”
Unlike payments apps that focus on consumers, Laven told CNBC that Currencycloud operates in a segment that he calls “embedded finance.”
“We’re probably the most important business that you’ve never heard of,” he said. “But that’s conscientious on our part,’ he said. “We do not have a strategy where we compete with our customers.” Instead, Laven clarified to TechCrunch, “My brand is invisible. We think we’re still the only one that has that kind of solution.”
Mike Laven, Currencycloud's chief executive officer.
Indeed, the company, which is headquartered in London, sells payment software for companies that are seeking to process transactions internationally; Currencycloud offers 85 APIs that cover everything from foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term to inbound money collection and multi-currency digital wallet services. Laven told TechCrunch that as of the end of 2019, roughly 350 companies were using the APIs.
According to CNBC, while the company may not be as well known as peers like Monzo and Revolut (which are more consumer-focused), Currencycloud “provides some of the crucial ‘plumbing’ in the background for such apps to operate.”
Indeed, Currencycloud works with Monzo and Revolut, along with Starling and a number of other “challenger banks” based in the United Kingdom. Challenger banks are relatively small, new retail banks in the United Kingdom that compete with the country’s more established banks.
Visa’s decision to fund Currencycloud comes shortly after Visa acquired Plaid, a company that provides APIs to link fintech apps to individual bank accounts, for $5.3 billion. The acuistion, along with the investment in Currencycloud, seem to be part of a burgeoning trend of investments into these “embedded finance” companies. Last year, Stripe raised $250 million in funding; similarly, Checkout.com pulled in $230 million.
UK-based business-to-business Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term startup Currencycloud has raked in $80 million in funding from a number of strategic investors, including Visa Inc., BNP Paribas SA, SBI Group, Siam Commercial Bank, and the International Finance Corp. The results of the fundraising round were reported by Reuters on Sunday, January 26.
According to CNBC, Mike Laven, Currencycloud’s chief executive officer, said that the company has also partnered with Visa to provide its clients with access to Currencycloud’s products.
“Currencycloud is re-imagining how money flows around the global economy and embedding it into platforms of the future," Laven said in an official announcement.
“Transfer of value is fast becoming the newest layer in the modern technology stack, and Currencycloud is positioned to provide the infrastructure to make this happen. With these new strategic investors, we are well placed to be the go-to provider for the next wave of Fintech innovation."
The fundraising round also included cash from some of the company’s existing investors, including GV (formerly known as ‘Google Ventures’), Notion Capital, and Sapphire Ventures. The company has reportedly raised more than $140 million from investors and has processed over $50 billion in payments since it was founded in 2012.
We are really excited to announce our new investment! Take a read of our full press release for all the details. https://t.co/PrQE0wyQhd#payments #fintech #paytech
— Currencycloud (@Currencycloud) January 27, 2020
Laven told Reuters that the latest round of funding would be used to grow the company’s suite of products and to “dramatically increase our footprint in North America.” Currencycloud also currently operates in Europe and is seeking to expand into Asia.
Indeed, Laven explained to CNBC that while Currencycloud is not yet profitable, “our emphasis right now is not on profitability, our emphasis is on the strength of our offering and an expansion into other markets. The company is planning on opening an office in Singapore before the end of this year.
”My brand is invisible.”
Unlike payments apps that focus on consumers, Laven told CNBC that Currencycloud operates in a segment that he calls “embedded finance.”
“We’re probably the most important business that you’ve never heard of,” he said. “But that’s conscientious on our part,’ he said. “We do not have a strategy where we compete with our customers.” Instead, Laven clarified to TechCrunch, “My brand is invisible. We think we’re still the only one that has that kind of solution.”
Mike Laven, Currencycloud's chief executive officer.
Indeed, the company, which is headquartered in London, sells payment software for companies that are seeking to process transactions internationally; Currencycloud offers 85 APIs that cover everything from foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term to inbound money collection and multi-currency digital wallet services. Laven told TechCrunch that as of the end of 2019, roughly 350 companies were using the APIs.
According to CNBC, while the company may not be as well known as peers like Monzo and Revolut (which are more consumer-focused), Currencycloud “provides some of the crucial ‘plumbing’ in the background for such apps to operate.”
Indeed, Currencycloud works with Monzo and Revolut, along with Starling and a number of other “challenger banks” based in the United Kingdom. Challenger banks are relatively small, new retail banks in the United Kingdom that compete with the country’s more established banks.
Visa’s decision to fund Currencycloud comes shortly after Visa acquired Plaid, a company that provides APIs to link fintech apps to individual bank accounts, for $5.3 billion. The acuistion, along with the investment in Currencycloud, seem to be part of a burgeoning trend of investments into these “embedded finance” companies. Last year, Stripe raised $250 million in funding; similarly, Checkout.com pulled in $230 million.