Open Payments closes 3 MEUR in growth capital
The Swedish fintech company Open Payments has closed a 3 MEUR growth round. Industrifonden, Sweden’s venture capital fund, led the round, with participation from Sony Financial Ventures – Global Brain’s venture capital fund, as well as existing investors. The capital will be used for business-, product development and expansion.
Open Payments is one of the leading Open Banking platforms in the Nordics with focus on business to business (b2b) transactions. The company´s platform enables online banking functionality to be shifted from the online bank to the customers’ business systems and interfaces, so that the end user e.g. can approve and make secure, direct payments without having to login to their online bank. Open Payments platform connects to commercial banks (via API technology) to enable services such as payments, account reconciliation and cash management for embedding directly in client applications like ERP systems, payment providers and fintechs.
“We see an increasing demand from leading accounting and ERP systems and other financial systems that want to utilize Open Banking in their products in a secure and reliable way,” says Louise Brandt, CEO and founder of Open Payments. “Above all, they want to be able to provide various payments for their business customers, such as supplier payments and salary payouts. Open Payments has a cutting-edge expertise in this area and there are vast business opportunities for both us and our customers. We see that b2b payments are part of the Open Banking space where we have a first mover advantage and can take the lead internationally.”
Industrifonden was the lead investor in Open Payments latest round in 2020, and welcomes Sony Financial Ventures and Global Brain, as a co-investors.
“There are great opportunities with Open Banking since companies don’t need to be banks to provide secure banking functionality within their own systems,” says Anna Ljungdahl, Senior Investment Director at Industrifonden. “What they do need though is a player like Open Payments whose technology lowers the entry barriers to these opportunities. We’re happy to keep supporting the team and also welcoming global investors to Open Payment’s list of owners.”
Open Payments platform is developed based on the European directive PSD2. This regulatory framework is forcing banks to make account information and payment initiation services available to third parties, with the aim of opening up the market to players other than the banks to bring about new and innovative solutions for financial services.
Open Payment’s customer base consists of accounting and ERP systems providers and tech companies, who have integrated Open Payment’s platform in order to provide their own Open Banking solutions. What the customers have in common is that they have high demands for stability, security and reliability for the millions of business-critical transactions that are being processed. The company’s platform has been extremely well-received so far, with several new collaborations underway and Open Payments is looking to expand into new countries with both existing and new customers. In order to continue to be at the forefront of the Open Banking movement, Open Payments will continue to scale the product and develop the platform further during this year.