FinTech startup Plastiq has announced a $27 million venture capital funding round for its solution that lets businesses and consumers make payments with their payment cards, regardless of if cards are accepted.
Investors at Kleiner Perkins led the Series C funding round, according to a press release issued by Plastiq on Monday (Nov. 19), while DST Global also participated. Plastiq said it plans to use the investment to introduce new services for business owners and entrepreneurs, as well as focus on fueling growth.
Plastiq allows businesses and consumers to pay bill balances to Plastiq with their credit cards, while Plastiq goes on to facilitate the bill payment via the appropriate payment rail. The solution could be particularly helpful for B2B payments and the adoption of commercial cards in accounts payable, with a lack of supplier acceptance as one of the largest hurdles to card adoption among business payers. The tool also helps companies pay bills that typically aren’t paid via cards, such as rental payments.
In its announcement, Plastiq pointed to Bank of America research that found two-thirds of businesses are looking to expand in the coming five years, yet one-third said they are worried about a lack of available credit. Expanding use of corporate cards could ease this point of friction, while also allowing companies to access early payment discounts from their vendors and obtain the benefits of card reward programs.
The new funding will go toward the growth of Plastiq’s partnerships in the financial services market as well, according to the firm’s CEO Eliot Buchanan.
“In the past year, we’ve seen a much greater interest for Plastiq’s services across the payments ecosystem,” Buchanan said in a statement. “Business owners and consumers alike have told us they want to use their credit cards to pay any expense they wish, whether it’s business supplies or rent. This latest investment will help us make Plastiq more available to our customers wherever is most convenient for them.”
In another statement, Kleiner Perkins General Partner Ilya Fushman, who will join Plastiq’s board, said the company “holds a unique value proposition” that supports small business growth and access to capital.