The digital payments market is expected to balloon to $ 3 trillion by 2023, and today a startup that allows businesses to implement not only payments, but also the many other related (and necessary) services that come with them, using a single API, has provided a large round of funding to meet that demand.
Rapyd, a London-based startup that bills itself as a "fintech as a service" provider, has raised $ 100 million dollars, money it will use to expand its platform – which today allows customers to use API- one to enable check-out, fundraising, fund payments, compliance as a service, currency exchange, card issuance and integration – as well as to make acquisitions and expand the team.
This brings Rapyd's total raised to $ 1
"Rapid" is really the operative word for Rapyd: the company is not only riding a wave of strong growth, but this is the second round of funding it has made this year, after raising $ 40 million in February . Arik Shtilman, co-founder and CEO of Rapyd, says that the total payment volume on the platform (that is, how much Rapyd is moving) has grown more than five times this year, and that next year predicts that revenue levels will triple compared to 2019.
Rapyd does not provide current revenue figures, but it counts companies such as Uber, other major marketplaces and digital and brick-and-mortar merchants among its customers, to give you an idea of the kind of companies and businesses that use the white label service.
This latest round is led by Oak HC / FT with participation from Tiger Global, Coatue, General Catalyst, Target Global, Stripe and Entrée Capital. GC and Stripe led their previous round. Stripe is currently one of the biggest players in the world of ventech-backed fintech startups: in September, it announced a $ 250 million round, valued at over $ 35 billion. But interestingly enough, Stripe's position in Rapyd, at least for the time being, is not bound to cooperate with the company. Shtilman describes Stripe as "just a financial investor."
The challenge Rapyd has identified and tackles is the fragmentation found in the global payment market: each region has its own preferred payment methods (not all consumers use global credit or debit cards, and although they do so, they accept all payment transactions at the local level), and increasingly there is much more regulatory compliance that must be followed when making or making payments.
All this is not a core competence of most businesses, and it has led to the emergence of fintech companies that knit everything behind the scenes. Currently, Rapyd's platform allows these customers to accept cash, bank transfers, e-wallets and local debit card payments in over 100 countries; make payments in more than 170 countries; and settlement in multiple currencies in 65 currencies, numbers that Shtilman said continue to grow as it continues to make more interconnection agreements with local partners.
Rapyd is not the only company targeting this opportunity: Adyen, PayPal. WorldPay and increasingly Stripe are among the other big names that also offer services in this area. However, Rapyd's unique selling point lies in the fact that it offers its services through a Swiss Army knife-style API, which continues to grow.
"We are excited to be investors in Rapyd and believe the company enables global Internet companies to improve their ability to accept local payments in emerging markets," said Scott Shleifer, Partner, Tiger Global Management, in
Shtilman likes to compare his company with AWS in terms of continuous expansion of services and features, saying that since the last funding round in February, the company has not only expanded the number of countries it covers – he notes that Asia Pacific and Latin America are currently the fastest growing regions – but it has added more market features such as escrow account management and more compliance related features.
"We have had a significant lift in the platform and now have very large customers in the process to come on board, "he added.
Given that so much of the e-commerce world is related to the sale of physical goods (not just services), which provides an interesting opportunity for Rapyd to move into another major area of the ecosystem: logistics. In fact, Shtilman noted that the company is currently working on its first partnership in this area, which will probably first be launched in Asia Pacific.
Whatever area Rapyd tackles for it, the main idea will be to continue to use digitized processes on these that have traditionally been done manually, which not only helps speed transactions but makes them less prone to errors and more traceable . "With people in the middle of transactions, it opens you up to disaster," Shtilman noted.
"As financial services become increasingly digitalized and global, Rapyd & # 39; s fintech-as-a-service approach has tremendous growth potential," said Tricia Kemp, co-founder and managing partner of Oak HC / FT, in a statement. "We are pleased to support and collaborate with the Rapyd team as they address one of the greatest challenges in financial services by helping businesses navigate the complexities of local and cross-border digital payments."