The digital shift in banking and payment services is a hot trend with no signs of slowing down. Service-by-service (BaaS) e.g. Wrap up, Unugand Bond helped fuel change by allowing companies to quickly integrate new financial services using APIs.
NovoPayment is a Miami-based global startup BaaS that mainly focuses on providing API clients to the Latin American market. It has developed a complete, cost-effective solution with three major components – data banking, payment infrastructure, and card solutions, its founder and manager Anabel Perez told TechCrunch.
Founded in 2007 by Perez and Oscar Garcia Mendoza, currently serving as chairman of the Novopayment board, NovoPayment has been open since its inception until it launches its Series A roundup earlier this year, the company announced today. It has already sparked an undisclosed turnover from its founders, but the $ 19 million Series A marks its first fundraiser for the agency, according to Perez, who has worked as a banker in Venezuela for two decades. before launching NovoPayment.
Fuel Venture Capital and IDC Ventures are co-leading the series A round, joining Endeavor Catalyst (Endeavor’s co-investment vehicle company) and Visa, according to the company. Fundraising marks Perez’s personal success, too, as the founder of Latina Women with business support; less than 2% of business dollars collected in 2021 went to all founding women groups, Pitchbook data shows.
About 85% of NovoPayment customers were in LatAm, including Venezuela, Chile, Colombia, Peru and Mexico in September last year, with the remaining 15% in the United States. PaymentsDive said. While Perez did not pay for the renewal, she said many of the ~ 50 current customers, including banks and credit unions, are in many markets.
“They needed one site that could help launch these new cases of use in more than one country,” Perez said.
The company has seen its customer base increase by 40% last year and expects to see similar growth this year. Its revenue is tens of millions of dollars and the company is in “excellent health,” Perez added, though it did not provide further details about its finances.
It plans to use the new investment to attract new customers, especially in U.S. markets, as Miami continues to grow at the heart of the financial services sector, Perez said. The investment will also help NovoPayment increase its current customer base in its existing markets and add 100 new employees to its team of more than 340 employees today, she said.
NovoPayment integration is the primary benefit of customer acquisition, Perez said. Financial service providers typically search one by one for technology vendors and only connect these services to each other later when needed, a practice that was adopted years ago and continued over time, she added.
“That is why it is very expensive for them to have access to their infrastructure, and it is very expensive for them to be able to comply with regulations and standards, ”Perez said.
Novopayment has been focused since its inception to build a technology package that integrates all the key joint ventures of financial institutions to build their services in digital banking, Perez said. Its services are broad and unified so customers do not need to contact vendors outside its cloud, she added.
Because the company has been competing for its products for more than a decade, its production is “better, faster, and more expensive” than competitors, Perez said. NovoPayment is tied for more than 60 points through its technology packages, and has no reliance on other brands – an arrangement that enables its customers to turn to a global bank in less than a month, she added.
“We have invested a lot of time in designing and building this site that not only serves the U.S. market, but also has been proven and tested to serve 30 more markets in the United States,” Perez said.