World Processing Providers provides $100M to its coffers to develop its embedded finance and API funds platform – •

Embedded finance continues to be the engine driving the expansion of fintech, with one group of corporations constructing core banking, funds and different monetary know-how, and a a lot larger group tapping that know-how by way of APIs to construct customer-facing companies. Right now, one of many larger gamers on the core know-how facet — World Processing Providers — is saying $100 million in funding, an indication not simply of how common embedded finance stays as a enterprise, but additionally GPS’s traction within the area.

Singapore investor Temasek and US agency MissionOG are the 2 buyers on this newest tranche of funding, which is coming within the type of an extension of a $300 million funding that GPS introduced again in October 2021, closing out the total spherical at $400 million. Creation Worldwide and Viking World Buyers co-led that earlier spherical, which gave them a controlling stake in GPS. Different buyers within the firm embrace Visa. As with the sooner a part of the spherical, GPS — which relies in London, England — is just not disclosing its valuation at present.

“This isn’t one thing on which we want to be drawn, however what we are able to say is that we proceed to aspire to be one of many largest paytech corporations on this planet, mirroring the success of suppliers on the buying facet of funds, comparable to Adyen, Stripe and Checkout.com, and Marqeta on the issuing facet,” stated a spokesperson in response to the valuation query. “We imagine we have now constructed a particular platform. This injection of capital by the world’s main consultants in funds and subsequent technology know-how will allow us to carry monetary empowerment and allow extra of our fintech purchasers all over the world on their journey to unicorn standing.”

The funding will likely be used to proceed rising GPS’s enterprise — which features a vary of fintech companies comparable to funds, direct debits, and standing orders; digital playing cards; cell wallets; fraud prevention; expense administration; cryptocurrency administration; BNPL and extra (these are bought beneath the GPS Apex model).

Particularly, the corporate desires to broaden additional in Europe and Asia Pacific, in addition to in additional rising markets throughout the Center East and Africa; and it desires to carry on new merchandise. (Notably, there aren’t any mortgage merchandise within the combine proper now, in order that could possibly be one space it explores; insurance coverage could possibly be one other, and so may options tailor-made for particular verticals.)

The explanation for the funding and investor consideration is that GPS, and the area it’s lively in, have each seen an enormous surge of exercise. One one hand, neobanking companies amongst customers and companies have been rising in recognition (and credibility); on the opposite, we’ve seen an ever-expanding vary of non-fintech companies (comparable to telcos and retailers) which might be tapping the idea of embedded finance so as to add new options and income streams into their very own platforms.

Extra typically, customers and companies made an enormous shift to finishing up all of their monetary actions on-line because the Covid-19 pandemic took maintain of the world, and whilst/if that abates, it appears like they won’t utterly return to their analogue methods. That has had a knock-on impact on enterprise funding for the entire fintech business. It was simply yesterday that one other massive participant in fintech, the funds startup Checkout, raised a whopping $1 billion at a $40 billion valuation.

GPS itself focuses primarily on these working extra instantly in fintech, with its its clients together with Revolut, Starling, Curve, Zilch, and Paidy. Its stated its companies are getting used at present in 48 nations and that final yr it processed greater than 1.3 billion transactions, with 190 million playing cards now issued to this point.

“GPS is an progressive know-how firm, and we imagine their distinctive place on the coronary heart of the worldwide funds ecosystem ideally positions them to energy the subsequent technology of monetary companies,” stated Gene Lockhart, the final accomplice at MissionOG, in an announcement. “With the deep community and expertise MissionOG brings to the desk, we look ahead to being a trusted and valued accomplice of Joanne and your entire crew.” Notably, Lockhart is taking up a job as chair at GPS with this funding.

“The upsizing of this newest spherical of funding is a vital step ahead for the corporate and a powerful endorsement of our technique,” added Joanne Dewar, GPS’s CEO. “We’re an organization that has grown quickly lately, pushed by our dedication to innovation and the supply of a single scalable know-how platform. The experience that our new companions carry to GPS will likely be invaluable as we enter our subsequent section of geographic growth and know-how innovation.”

Up to date with response on valuation from firm and to notice that GPS relies in London, not the Isle of Man.

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