Open banking platform TrueLayer has closed a $130m fundraise, which was led by Tiger Global and Stripe.
With the capital, the FinTech company hopes it can reach more customers, further the development of its open banking infrastructure and hire more staff to its engineering and product teams.
In a blog post announcing the investment, TrueLayer CEO and co-founder Francesco Simoneschi explained how the online payments space is still outdated. While trading stocks, ordering a taxi or even buying something like a car can be completed via a phone in a few clicks, the payment experience is “often fragmented and frustrating.”
People are consistently having to enter the 16 digits of their debit cards and trusting unknown websites to securely store the details. Simoneschi said, “Let’s face it: card payments online are broken. They were designed for the physical world. As a result, the UX is bad, transactions are costly and there is a high risk of fraud.”
While mobile wallets like Apple Pay are improving the experience, Simoneschi said they just “paper over some of those cracks” and leave more costs and complexity for merchants.
However, there is change on the way. Open banking, which is becoming more common around the world, enables businesses to safely access data and make payments on behalf of a customer. Secondly, mobile phones are using improved identity verification to avoid fraud.
TrueLayer is a global payment network that hopes to make instant and recurring payments available anywhere. Its technology helps build financial applications that connect to bank data, verify accounts and support real-time transactions.
In 2021, the company claims to have processed billions of pounds in payments and experienced 400% growth in monthly volume and 800% growth in monthly value. TrueLayer has also expanded across Europe and doubled its customer base.
TrueLayer previously raised $70m in a Series D funding round in April 2021.
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