London-based fintech Banked, which lets people pay through their mobile banking app at checkout, has raised US$15m in an extension to its Series A funding round.
The round extension was led by Insight Partners and backed by Citi, National Australia Bank Ventures and Rapyd, which also recently became a business partner of the firm. Banked says the latest capital injection recognizes its “traction and distinct approach to building a global bank-based payments network”.
The extension comes on the heels of Banked’s oversubscribed Series A earlier this year, which was led by Bank of America. It brings the total amount raised by Banked to over $50 million to date, allowing the fintech to embark on an ambitious international expansion starting with the United States. It is targeting the international bank payment market, which is expected to be worth $46 billion in Europe alone by 2026. Banked has already grown into a team of 100 people in its efforts to capitalize on this opportunity.
At the time of the initial Series A raise, Banked CEO and co-founder Brad Goodall told FinTech Magazine that it was “a testament to the hard work and dedication of the team and what we have already been able to accomplish”.
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Speaking of the US$15 million Series A extension, Brad Goodall continued, “Pay-by-bank is taking off globally. Major banks recognize the significant opportunity it presents to improve the end customer experience and market value proposition. This is supported by increasing merchant demand which is driving use cases for Pay by Bank in the enterprise B2B and B2C space. There’s a queue forming to be part of the new payment network and to help shape its future with a seat at the table.
“Banked has a unique partnership model that leverages global go-to-market partners in the form of banks, PSPs and technology platforms. This means we had to develop real depth and capabilities in areas such as risk and compliance, security, consumer protection, platform scalability, and most importantly, feature-rich user experiences. for our partners and their customers. Banked has been building products and partnerships for four years and it’s exciting to launch global markets at a pace now.
Byron Lichtenstein, Managing Director of Insight Partners, adds: “Banked have enormous ambition and we believe they have built the team and the product to tackle such an exciting opportunity in payments. There are many ways to approach the problem, and Banked’s unique strategy for partnering with commercial banks and payment service providers, as well as their product capabilities, stood out to us.