COVID-19 pandemic brings massive acceleration to global payments industry
A recent development within the global payments industry has illustrated the extraordinary impacts that the COVID-19 pandemic, along with associated widespread restrictions on social behavior, is having on international financial transactions and technologies.
California-based global Fintech-as-a-Service company, Rapyd, has announced a US$300 million Series D financing round led by technology-focused investment manager Coatue.
Among other things, the funding will be used to double Rapyd’s engineering and product teams and expand its online platform following a massive acceleration in the adoption of local and cross-border digital payments.
Several new investors have joined in the financing, including Spark Capital, Avid Ventures, FJ Labs, and Latitude, along with further investment from current investors General Catalyst, Oak FT, Tiger Global, Target Global, Durable Capital, Tal Capital and Entrée Capital.
Rapyd’s platform embeds fintech services into any application and simplifies the complexity of offering local payment methods through an easy-to-use application programming interface (API) while managing diverse compliance and regulatory requirements.
Businesses can accept and send payments through the Rapyd Global Payments Network without having to build their own infrastructure. The network supports hundreds of local payment methods including cards, bank transfers, ewallets, and cash.
Rapyd says it has experienced tremendous global growth. According to a recent McKinsey Report, one of the primary impacts of COVID-19 has been the acceleration of changes in areas that are typically much more gradual – in this case, consumer behavior – with five years of change compressed into less than one.
Changes in purchasing habits have propelled consumers and businesses online, in both mature and emerging markets. Along with that has come the need to accept and send payments using cards and alternative payment methods en masse.
“The demand for online payments has skyrocketed following the restrictions due to COVID, and as a company, we are well placed to provide businesses across the globe with the solutions they need and to get them up and running fast,” said Rapyd’s co-founder and Chief Executive Arik Shtilman.
“To kick off 2021 with this substantial round of funding to further invest in our platform is a tremendous vote of confidence, both in the growing need for local payment solutions that can be deployed on a global scale, and more specifically, in our vision and company.”
The Managing Partner at New York-based Coatue, Kris Fredrickson, said the payment landscape varies dramatically across countries, and a company doing business globally might need to accept hundreds of local payment methods.
“Rapyd’s API, which abstracts away this complexity, is currently powering what we think are many of the world’s most exciting companies,” he said. “We are honored to partner with Arik and his team for the next phase of the Rapyd journey.”
The new funding will be used to double Rapyd’s engineering and product teams, as well as to expand the “self-service” element of the company’s platform, enabling businesses around the world to join Rapyd and begin utilizing any of its financial capabilities in the shortest possible time.
The company will continue its focus on core markets that serve business-to-customer and business-to-business ecommerce payments, marketplaces, and financial-services businesses.
Following its acquisition and integration of European card acquirer Korta in early 2020, Rapyd is also exploring additional strategic acquisitions in the Americas, Asia-Pacific, Europe, the Middle East and Africa.