- Payments infrastructure company Finix announced it has raised $75 million in additional funding to help vertical Software-as-a-Service (SaaS) providers and fintech companies build better payments experiences for their merchants
Payments infrastructure company Finix announced it has raised $75 million in additional funding to help vertical Software-as-a-Service (SaaS) providers and fintech companies build better payments experiences for their merchants. Including this funding round, Finix has raised $96 million in total funding to date.
This funding round is an extension of Finix’s $45 million Series B round announced in March 2020 and it comes on the heels of a 4.5x increase in payments volume from Q2 2019 to Q2 2020. Lightspeed Venture Partners led the extension with American Express Ventures’ participation.
Payments is known to be a massive and fast-growing industry: $2 trillion growing at 6% per annum. And recent months have seen private and public market activity underscore the significant growth of the payments industry worldwide.
The pandemic has been turning many businesses towards cloud infrastructure and platform services like Finix provides. And in Q2 2020, cloud spending rose to $30.5 billion, which is $7.5 billion more than the same quarter of last year.
Both the cloud and digital payments transformations are in their early stages. And as the trends grow and merge, SaaS enterprises are increasingly looking to manage payments infrastructure the way they do web services.
Finix’s growing and diverse customer base includes mobility management platform Passport Labs, private club management software platform Clubessential, retail point-of-sale company Lightspeed POS, and many more. And SaaS companies and fintechs like these are using Finix APIs to build and manage business-critical payments experiences for the same reasons they use cloud services whether it is to reduce cost, increase flexibility, and accelerate time to market. Just like with cloud, as digital payments are adopted, the beneficiaries are increasingly small businesses using SaaS tools.
KEY QUOTES:
“Businesses everywhere are turning to digital payments and SaaS tools to manage the challenges and changes brought on by the pandemic. We’re proud of the role we’ve played in helping our customers respond to new demands. As we look to bring the power of embedded payments to more companies, we’re excited to have Lightspeed and American Express Ventures as investors who intimately know the software and small business worlds. The new capital allows us to bring in top-tier talent and more quickly pursue our goal of turning all software companies into payments companies.”
— Richie Serna, CEO and Co-founder of Finix
“Finix brings together three of our main areas of interest—enterprise software, eCommerce, and fintech—to empower software companies to design payments deeply and thoughtfully into their user experience while also improving their bottom line. The pandemic has made it clear that seamless digital payments experiences are more critical to success than ever before. Massive enterprises and startups alike should take advantage of Finix and its spot at the intersection of the cloud and payments.”
— Will Kohler, Partner at Lightspeed Venture Partners
“Traditionally, companies who have wanted to operate their own payments infrastructure either had to build payments capabilities in-house, which is costly and time-consuming, or outsource to a third-party provider, which can also be expensive. Finix provides a solution that enables companies to own, manage and monetize their entire payments experience. Finix and American Express share a dedication to helping businesses simplify operations and grow their business. We are excited to support Finix’s continued growth as they deliver tools for eCommerce innovators.”
— Lindsay Fitzgerald, Managing Director at American Express Ventures
