By: Mary Ann Azevedo
We’ve written a lot about fintechs that aim to help other fintechs and traditional banks launch products and services.
But it feels like we have written far less about fintechs that exist solely to help the incumbents better compete with fintechs.
Extend is one such company. The New York-based startup, which provides digital payment infrastructure for financial institutions so they can offer virtual cards to their users, has raised $40 million in a Series B funding round led by March Capital.
Other investors include B Capital, Point72 Ventures, Fintech Collective, Reciprocal Ventures, Wells Fargo and Pacific Western Bank. The latest financing brings Extend’s total raised since its 2017 inception to $55 million.
Extend has integrated directly with major networks and processors — including Global Payments/TSYS, Mastercard and Visa — with the intent of building technology that supports virtual cards on top of the infrastructure banks are built upon. This means that card issuers can combine Extend’s offering with their current products, with “no technical implementation required,” according to the company.
So far, Extend has more than 2,000 business customers currently using its applications, is growing 30% month-over-month and has a run rate of “close to $2 billion dollars” in processing volume, or the spend clients are making on its virtual cards, according to the company. It makes basis points on the transactions made on those cards.
Last month, Extend inked a deal with American Express which allows its millions of small and mid-sized business card members to access virtual cards through their existing physical cards “in minutes.”Read the Full Article on TechCrunch