Despite sweeping changes across all areas of financial services, cross-border payments in the US have remained relatively untouched. Now, armed with new funding, Routefusion seeks to finalise its product and form the necessary partnerships to disrupt a $224 billion category.
Earlier this week, Austin-based fintech Routefusion announced it has secured $3.6 million in seed funding from venture capital firms in Austin, TX and San Francisco, CA. The company is focused on creating a new and simplified approach to cross-border payments. Its API enables neo-banks, payroll providers, platforms, and marketplaces to begin offering cross-border payments to their customers in as quickly as two days.
“Historically, cross-border transactions involved vast, expansive teams to build out technology and partner relationships,” says Colton Seal, CEO, and co-founder of Routefusion. “Our team is making cross-border payments as easy as a credit card payment.”
The round was led by Silverton Partners with additional participation from Initialized Capital, NextWorld Capital, and William Hockey, co-founder of Plaid. This capital raised will allow Routefusion to continue its self-serve product expansion, help facilitate new global banking partnerships, and expand upon their current partnerships with AFEX, MoneyCorp, Cambridge, Tempus, ReserveTrust, Nium, and Buckzy.
Founded in 2019 by Colton Seal and Richard Scappaticci, Routefusion is the first embeddable cross-border-payments-as-a-service company founded by software engineers for software engineers. Routefusion’s API enables neo-banks, payroll providers, platforms, and marketplaces to begin offering cross-border payments to their customers in as quickly as two days. With a single integration, Routefusion customers have access to more than seven different banking and FX providers.
Since its inception, the number of payments facilitated by Routefusion has increased month over month, ending in 2020 with nearly $40 million in transactions from its client roster which includes Synapse, Rippling, GrainChain, CardUp, Jeeves, Headcount, and many others.
“We’re just getting started,” said Seal. “Our roadmap for 2021 includes executing nearly a dozen global partnerships, doubling headcount, and continuing to provide superior customer service. It’s going to be an exciting year for the entire Routefusion family!”
As part of their investment, Roger Chen, Partner at Silverton will join the company’s board of directors and Andrew Lee, Partner at early-stage venture capital firm Initialized Capital, will hold a board observer seat. Craig Hanson, General Partner at NextWorld Capital, will also hold a board observer seat.
“Our team is excited to lead the seed round for Routefusion and partner with the company to build the future of fintech,” says Chen. “We’re impressed by the team’s vision for the future of embedded cross-border payments. For tech companies who want to offer international payments to their customers, Routefusion unlocks the ability to manage those payments at scale and change the game with their speed to market.”
Lee, who led Initialized’s investment in Routefusion’s pre-seed round, also believes that the company is poised for great success. “Routefusion is a hidden fintech gem. In just a few short years, they’ve grown into a multi-million dollar company with an impressive client roster. Their vision and drive has the ability to take payments and flows away from large, traditional banks and existing incumbents, allowing non-fintech companies to offer banking services to their customers.”
Source: The Fintech Times
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