Pay-by-bank fintech Banked raises another $15 million in funding
London-based fintech Banked, which lets people pay through its mobile banking app at checkout, has raised $15 million in an extension to its Series A funding round.
The round of expansion was led by Insight Partners and backed by Citi, National Australia Bank Ventures and Rapyd, which also recently became a commercial partner for the firm. Banked claims the latest capital injection recognizes its “traction and distinct approach to building a pay-for-bank global network”.
The extension comes as a result of Banked’s oversubscribed Series A round earlier this year, which was led by Bank of America. That brings the total amount raised by Banked to more than $50 million to date, allowing the fintech to embark on ambitious international expansion starting with the US. It is targeting the international pay-to-bank market, which is estimated to be worth $46 billion in Europe alone by 2026. Banked has already grown to a 100-strong team in its bid to capitalize on this opportunity.
At the time of the first Series A raise, Banked’s CEO and co-founder Brad Goodall told FinTech Magazine that it was “a testament to the team’s hard work and dedication and what we’ve already been able to achieve”.
Banked ‘couldn’t be happier’ to have new investors on board
Speaking about the US$15 million Series A expansion, Brad Goodall continues: “Pay by Bank is taking off globally. Leading banks recognize the significant opportunity it presents to improve end-customer experience and merchant value. This is supported by increasing demand from salespeople who drive use cases for Pay by Bank in the corporate B2B and B2C space. A queue is forming to be part of the new payment network and help shape the future with a seat at the table.
“Banked has a unique partnership model that relies on global go-to-market partners in the form 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 building products and partnerships for four years, and it’s exciting to launch markets globally at pace now.”
Byron Lichtenstein, CEO of Insight Partners, added: “Banked has 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 cooperation with commercial banks and payment service providers, as well as their product features, stood out for us.”
