Rainforest, a rapidly growing embedded payment provider built for software platforms, has announced the close of its $29 million Series B funding round. The round was oversubscribed and led by Matrix Partners and Infinity Ventures, with continued support from Accel and Tech Square Ventures—all of whom participated in Rainforest’s Series A last year.
This latest funding round brings the company’s total to $57.5 million. It will support Rainforest’s expansion into Canada, accelerate hiring, and drive product innovation across tap-to-phone, alternative payment methods, and fintech orchestration.
Since its last funding round, Rainforest has seen explosive growth, increasing revenue more than tenfold and processing billions of dollars in annual payment volume. Its customer base spans a wide range of industries, including healthcare, nonprofit donation management, professional services, and youth sports. Platforms such as Hint Health, Payground, RoadSync, QuoteMachine, d-tools, ProLine, Duesy, and Materio are among nearly a hundred software companies that rely on Rainforest to power their embedded payments.
Rainforest’s product development has kept pace with its growth, introducing features that help platforms increase payment adoption, transaction volume, and revenue. These include embeddable chargeback management tools, advanced ACH capabilities with real-time bank validation, real-time BIN lookup for compliant surcharging, partial authorizations to improve approval rates—especially for HSA/FSA payments—and a Forward API that allows platforms to securely share data with trusted third parties without requiring token exports.
Broader industry trends also drive the company’s success. Small and medium-sized businesses (SMBs) represent a significant portion of U.S. payment volume and an even larger share of net revenue. According to UBS, SMBs account for 25–30% of payment volume but generate at least 70% of net revenues. The share of SMB merchant acquiring revenue processed through SaaS platforms is expected to grow from 33% in 2024 to 46% by 2029, as more businesses move away from traditional payment processors. Bain & Company projects that embedded payments will surpass $7 trillion in total U.S. financial transactions by 2026, creating a massive opportunity for platforms like Rainforest.
Rainforest is designed to help vertical software companies embed payments seamlessly into their platforms, driving retention, revenue, and enterprise value. The company has built its technology and service model specifically for software platforms, addressing common pain points such as merchant onboarding delays, inconsistent payment data, operational bottlenecks, and a lack of visibility into deposit flows and processing costs. Unlike competitors like Stripe Connect and Ayden Platforms—which were initially built for merchants and later adapted for platforms—Rainforest’s infrastructure is purpose-built for the SaaS ecosystem.
The results speak for themselves. Rainforest has helped platforms increase margins from 21 to 54 basis points, migrate over 1,600 merchants in just a few weeks, boost card volume by 16% through UI optimizations, raise HSA/FSA authorization rates from below 30% to 94%, and reduce chargebacks due to fraud by 90%.
To support this momentum, Rainforest has expanded its leadership team across go-to-market, people, and legal functions. For example, the company has doubled its engineering team to accelerate product innovation and more than doubled its platform experience team, adding new leaders in payment operations and risk. Recognized as one of Built In’s Best Places to Work in 2025, Rainforest continues to invest in building a world-class hybrid team focused on delivering exceptional service and scalable solutions.
KEY QUOTES:
“Doubling down on our commitment to Rainforest was a no-brainer. They delivered even more growth than expected in the year following their Series A. Joshua Silver is a remarkable founder-leader who, along with his team, has been laser-focused on delivering superior service and modern embedded payments from day one. Embedded payments are the secret weapon of the best vertical software companies, like Shopify and Toast. It’s not uncommon to see 2-5x increases in revenue, retention, and other metrics once a platform successfully embeds payments. It’s easier than ever to add payments to a vertical SaaS product, but it’s harder than ever to succeed with payments because revenue depends on adoption. Rainforest provides the technology, service, and proven playbook to help their platform clients maximize adoption and drive real payments revenue.”
Matt Brown, Partner at Matrix and Rainforest Board member
“Our growth reflects our customers’ success – many of them rely on Rainforest to generate 50% or more of their revenue, which is both an extreme honor and responsibility. In my twenty years of experience in payment technology, I have never felt more confident about the ability to deliver on the wishlist of functionality, security, visibility, consistency and reliability. We’re seeing an increase in demand because vertical software companies want an embedded payments product that’s purpose-built for their use case and a provider who is focused on their needs. We’ve already signed major Stripe clients with billions in processing volume. This new investment will be instrumental in building on our momentum and making our platform even more feature-rich as we help our customers maximize their payment revenue.”
Joshua Silver, founder and CEO of Rainforest
“Rainforest is so much more than a technology company, they’re an extension of our team. From high-level migration strategy to specific messaging, technical details, and day-to-day support, the Rainforest team works closely with us to make sure we get the desired outcome – a profitable, high-quality embedded payments product where we own our data and customer relationships – while making the transition as seamless as possible for our customers. Rainforest is a true partner.”
Zak Holdsworth, CEO of Hint Health
