Banked Ltd (“Banked”), the London-based fintech company building a next-gen global payment network, announced it has raised over $15 million in a Series A extension round, led by global software investor Insight Partners.
The investment round was supported by Citi and NAB Ventures, recognizing Banked’s traction and distinct approach to building a Pay by Bank global network. Newly announced commercial partner and global payments firm Rapyd also participated in the round.
The extension came as a result of an oversubscribed Series A earlier this year that was led by Bank of America. This latest infusion of capital brings Banked’s total investment raised to date to over $50 million and includes the participation of new global investors supporting the company’s expansion into new geographies with a focus on the U.S.
Insight Partners is an experienced investor in the open banking space, having previously invested in Tink AB which was acquired by VISA last year. The growth and expansion adds to the major partnership Banked announced earlier in the year with Bank of America. In a demonstration of Banked’s commitment to the US and as a signal for how important the country will be to its future strategy, Banked opened an office in Palo Alto, California and CEO Brad Goodall has relocated from London to lead this expansion.
Banked now has close to 100 staff and is growing at a time when many fintech rivals and the industry at large have been put under huge pressure to consolidate. This is due to increasing merchant demand and accelerated interest by banks to play a role in the expansion and commercialisation of real time payment rails globally.
“Pay by Bank is taking off globally. Leading banks recognise the significant opportunity it presents to improve the end-customer experience and merchant value proposition. This is supported by increasing merchant demand driving uses cases for Pay by Bank in the enterprise B2B and B2C space,” said Brad Goodall, Banked CEO.
“There is 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 which relies on global go-to-market partners in the shape of banks, PSPs and technology platforms.
“This means we have had to build real depth and capability in areas such as risk and compliance, security, consumer protection, platform scalability and most importantly feature rich user experiences for our partners and their clients and customers. Banked has been heads down building products and partnerships for four years and it is exciting to be launching markets globally at pace now,” said Mr Goodall.
Of the new investors, Goodall says, “Insight Partners is an amazing global firm with such strength in the payments and fintech space. To increase our share price in this current market with overwhelming demand from investors, I couldn’t be happier to have Insight onboard to build what is a multibillion-dollar opportunity. I am also excited that Citi, NAB and Rapyd are joining as it shows that Banked has real strength in working with the biggest and best banks and payment firms in the world.”
“Banked has a huge ambition and we believe they have built the team and product to tackle such an exciting opportunity in payments. There are many ways to approach the problem, and Banked’s unique strategy in partnering with commercial banks and payment service providers, as well as their product capabilities, stood out to us,” said Byron Lichtenstein of Insight Partners.
Founded in 2018, Banked is aiming to become the leading provider of alternatives to card payment methods. Unlike other mainstream global payment methods, users do not need to create an account or pass any login information to Banked – they simply choose their existing bank at checkout and are securely connected to their mobile banking app to biometrically authenticate the purchase. Total checkout time for a first-time user is under 30 seconds and no financial details are shared with Banked, which boosts security.
For merchants, costs are significantly lower and transactions take place in real time and settle instantly. The market for Pay by Bank payments is growing rapidly. Recent research by Allied Market Research predicts the market will reach $43 billion by 2026 in Europe alone. Banked has established consumer appeal by building a brand, a best-in-class user experience and instant refunds. It has also added incentives including a reward programme with British Airways.
Quote from Amanda Angelini, NAB Ventures Managing Director:
“As Australia’s leading business bank, we understand our customers want faster and more streamlined options for payments and we’re always looking to invest in companies and work together on product innovation.”
“We see great potential in working with Banked to create simpler, secure and real time customer payment experiences for our business and consumer customers. We’re looking forward to working with Banked.”
Banked is the architect of a new global payment network offering a real alternative to the card schemes. Consumers now have a way to pay without entering financial data and connecting directly with their mobile banking app. There is no need to create an account, no financial details are shared, authorisation is biometric, and the merchant receives the funds in real time and in full. Fees are up to 90% lower than the traditional payment methods and fraud is virtually eliminated which should help promote lower prices for consumers. Banked also enables businesses to drive customer engagement and loyalty with incentives and rewards integrated into the payment experience.
For more information, visit www.banked.com