PSD2 compliant payments system Ryft has received an authorisation licence from the UK’s Financial Conduct Authority (FCA) allowing it to become a regulated payment facilitator.
This licence allows Ryft to expand its in-house compliance team, enabling it to facilitate more complex payments.
The Ryft solution processes payments and automatically diverts funds to merchants and sub-merchants the next working day. It describes itself as “Stripe Connect without the high fees and lengthy payout wait times.”
Its end-to-end solution handles everything from accepting payments, verifying and onboarding merchants, to splitting up payments. It also ensures anti-money laundering rules are followed and risks are averted.
Co-founders and best friends Sadra Hosseini and Alex Mackenzie came up with the idea for Ryft while working at their first business Butlr, a mobile ordering marketplace app for pubs and bars. They rapidly scaled the service during the pandemic, reaching over a million customers and 500 active venues before the platform was acquired by OrderPay in 2022.
The duo noted a gap in the market for the profitability of microtransactions and fast payouts.
Ryft CEO and founder Sadra Hosseini said, “We are both incredibly proud to have secured our FCA licence after a year and a half. This furthers our ability to provide support to marketplaces and merchants in the industry. Ryft was created to handle everything so your business doesn’t have to.”
The company previously raised £1.5m in a seed fundraise in August 2022.
In other RegTech news, Oscilar emerged out of stealth to help protect online transactions. Its mission is to help companies make the best decisions for online transactions, protecting consumers’ and companies’ money.
Another RegTech funding round was raised by DataDome, which has built an AI-powered online fraud and bot management platform. The RegTech closed its Series C funding round on $42m.
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