In exchange for the funding, ING will receive a minority equity stake in the company. TransferMate will also provide international payment services to all corporate and small and mid-sized enterprise clients of ING.
Founded in 2009, TransferMate holds an extensive network of payment licenses across the world, which allows it to reduce the cost of international payments between businesses. So far, TransferMate said it has facilitated the movement of $10 billion in international B2B payments since its launch.
“Cross-border B2B payments can be complex, time-consuming and expensive for businesses,” said the firm’s cofounder and CEO Terry Clune. “At TransferMate, we aim to provide the most convenient and cost-effective way for businesses to move money around the globe.”
The ING investment is expected to close in the third quarter of this year, subject to final documentation and regulatory approval.
Clune said the Ireland-based FinTech is “delighted” to welcome ING as an investor and partner, with ING’s Evelien Witlox adding that the partnership “perfectly fits” ING’s innovation strategy.
This latest round takes TransferMate’s series A fundraising to a total of €51m, after it raised €30 million from Allied Irish Banks (AIB) at the end of 2017. AIB also took a minority stake in the company as part of the deal, and also joined the company in a strategic partnership to link Irish businesses with international B2B payments services provided by TransferMate.
“Our partnership with AIB aims to combine the bank’s forward-looking digital strategy with our technology and a global reach to bring business customers of the bank a truly convenient and cost-effective solution when sending or collecting funds globally,” added TransferMate cofounder and CFO Sinead Fitzmaurice in another statement.
The company’s series A is dedicated to accelerating its growth across the U.S., Canada, Europe and the Asian Pacific region.