TransferMate secures investment from Railpen

Railpen investment helps payment tech group achieve the unicorn status

by | May 23, 2022 | bobsguide

Irish-headquartered B2B payment infrastructure-as-a-service provider, TransferMate, has raised $70 million in funding.

The company intends to use the proceeds from the financing to expand its team globally and further invest in its technology and product suite.

Barclays managed the funding round, with participation from UK rail workers’ pension fund, Railpen.

“By combining our technology and our global licence network, we empower software providers, banks and fintechs to deliver payments dramatically faster & cheaper than the traditional SWIFT system,” said Terry Clune, founder of TransferMate.

“We will use this investment to continue to recruit senior financial talent who can help broaden our customer base.”

Sinead Fitzmaurice, CEO of TransferMate, added: “This investment will allow us to accelerate our mission to drive innovation as businesses seek to digitise their B2B payments within the core software that they use to conduct their day-to-day activities.”

TransferMate serves software platforms, banks and fintech companies around the world, enabling cross-border payments in more than 201 countries and 141 currencies.

Its partner network includes ING, JP Morgan, Wells Fargo and AIB, among others.

Payment infrastructure sees unicorn boom

The investment from Railpen boosts TransferMate’s valuation to $1 billion. The Irish fintech now joins a slew of payment infrastructure providers that have achieved unicorn status in recent years amid growing global demand.

According to the recent global payments report by FIS, almost 72% of the world’s population have or will soon have access to instant payments. The report also highlights the increasing adoption and exploration of instant cross-border payments in Europe and APAC regions.

McKinsey, in its own 2021 global payments report, estimates that SMBs will spend more than $100 billion on payments services by 2025. The estimated figure sheds light on the outpouring of funds into the payment infrastructure, taking those providers to the unicorn status.

TransferMate’s unicorn status comes at the heels of its UK peer Paddle’s $1.4 billion valuation earlier this month. Paddle had raised $200 million in Series D equity and debt financing to achieve the value.

Japanese payment processor Opn also acquired the unicorn status this month after securing a $120 million investment.

Paytech industry expands capabilities

Amid increasing investment in the payment industry, technology providers have also been launching new products into the market.

In April, UK open banking platform TrueLayer extended its offering to include a novel variable recurring payment API for both sweeping and non-sweeping payments, removing the need for re-authentication when repeating money transfers between the user’s own two accounts or other businesses.

A month later, Lithuanian fintech company Bitlocus also partnered with banking-as-a-service platform Striga to launch a crypto payment card, offering its clients the ability to pay with cryptocurrencies.

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