Prepaid digital payment solution provider Prepaid Technologies has secured $96m in new growth financing.
The financing round was led by Edison Partners and was also co-led by StepStone Group. Other participants in the raise were Stifel Venture Bank and Top Tier Capital Partners
Founded in 1998, Prepaid enables its customer to access and customise B2B and B2C payments across segments such as payroll, rewards, disbursement and purchasing. The company currently partners with a wide range of business across the US as an advisor to offer solutions for the four aforementioned segments.
Prepaid claims it has seen over 15,000% straight-line growth in its load value and has seen its revenue hike 9x over the last five years. The company has over 1,700 customers and 450 active partners including banks, payroll processors, payment providers, wellness payments processors, merchant service providers and emergent FinTechs.
Prepaid stated that it will use the proceeds from the capital raise to accelerate its market expansion and continue to advance its ‘category-leading’ technology payments platform and customer-focused prepaid solutions.
Prepaid Technologies CEO Stephen Faust said, “We purpose-built our platform to create a turnkey way for companies to configure payments solutions across their enterprise however they operate. Clients access payments through our dashboard technology or integrate solutions into their workflows through our robust API suite. We’re laser-focused on productization and customization that will help to transition more companies to card-based and digital solutions. With this investment, and with Edison Partners’ expertise and experience, we can focus on investing in our current solutions, accelerating our industry footprint and expanding our suite of offerings to ensure our customers and partners achieve their goals.â€
Edison Partners partner Jennifer Lee added, “Prepaid Technologies is making it easy for businesses to transform their outdated disbursement, payroll, and purchasing processes with real-time digital payments across niche categories where competitors don’t have the same level of depth or expertise.
“This is a unique product offering, where a company can access and customize different payment solutions in a one-stop shop. We’re impressed with Stephen Faust and the management team’s ability to remain capital-efficient while growing organically and profitably. We look forward to working with them as they execute on their vision.
“Modern payroll and expense management for remote workforces continues to see strong traction through the last 18 months. B2B payments are also trending higher as companies opt for disbursement solutions that make it easier and safer to deliver corporate funds. These tailwinds bode particularly well for the company’s growth and provide a moat for adjunct product opportunities.â€
Edison Partners managing partner Chris Sudgen – who will join the Prepaid board – also remarked, “Loyalty payments and refund programs present an enormous niche opportunity. There is both a programmatic vertical opportunity and underserved community opportunity. Prepaid Technologies has an incredible load volume and data set, and the management team has deep banking and payments expertise, which we’re confident will bode well for the company’s continued growth and deliver value to customers and partners around the globe.â€
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