TrueLayer raises $70M for its open banking platform – TechCrunch

True Lair, a London startup that provides a developer-friendly platform for companies including other fintechs to use open banking, is revealing $ 70 million in new funding.

The Series D round is led by the new Investor Edition. Existing investors, including the Kinnear Group, Connect Ventures, Mauro Capital, Northzone and Temasek also participated. New investors include the Visionaries Club, Zach Kanter (CEO Steady), Daniel Graf (ex-Uber, Google, Twitter) and David Avi (ex-CEO SafeCharge, CEO UniPass).

True Lair says that Series D brings the total investment to $ 142 million. The injection of capital will be used to continue its open banking network, which enables payments, financial data, and identification as well as enabling companies to create new products that provide “how we spend, save and online.” Do the transaction “.

This will include further development of premium open banking-based services that go beyond just open banking APIs and will enable greater innovation in financial services, including embedded finance and payments generally.

To do this, and it says TrueLayer is expanding its engineering, product and commercial teams, to support growing demand. In the last 12 months, Fintech has expanded its services to 12 European markets.

Over the years, Francesco Simonsky, CEO and co-founder of TrueLayer and I, has often changed the use case or use cases of open-banking murderers. We may finally have our answer: payment.

This is because one aspect of open banking is payment initiation, which initiates the transfer of funds from your bank account on your behalf as an alternative to card payment to an authorized third party, taking into account online payments anytime Were not created.

“We believe that open banking payments will become the default way to make online payments, replacing other payment methods over the next five years,” Simonchi says. “Open banking is digital and native-first, transferring money safely and easily at a fraction of the cost, providing a better consumer experience”.

The past year has also highlighted some problems with existing payment methods, as people have turned to digital channels to manage every aspect of their lives. Trueline’s CEO says “the problem is cards,” which were not designed for online and have been withdrawn into the current online payment flow. New digital approaches such as Google Pay or Apple Pay paper but do not change the fundamentals at those cracks ”.

Simoneschi says the company has increasingly seen the use of its payment APIs as more consumers embrace instant bank payments. Volume has increased 600-fold compared to last year, driven by more and more companies, including options such as reverse banking, trading 212, freetrade and nutmeg.

“We typically see that 1 in 3 customers choose the open banking payment option after trying once,” he said, adding that for some customers, close to 70% of their customers as the primary payment method Are using open banking.

“There are many reasons why it makes sense for customers. For one, they do not need to remember card details. Instead, they authenticate instantly and securely with their face or fingerprint on their mobile device. In addition, they will never need to update the stored details if their card is lost, stolen or expired ”.

Open banking payments as a checkout option also benefit merchants, Simonschi argues. “These payments are typically converted 20% better (and up to 40% with our flow) than the card and have a success rate of over 95%, which would equal millions or millions in revenue recovered at the end of the year. Is, “says TrueLayer co-founder.

By Jothi Venkat

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