Yapily, the U.K.-based FinTech startup, has raised $5.4 million in a seed round of funding.
According to a press release covered by PE Hub, the funding round included HV Holtzbrinck Ventures and LocalGlobe. Funding will go to develop its API platform aimed at helping FinTechs connect to traditional banks. A result of the open banking revolution going on in the U.K., Yapily said it’s able to launch its API. The open banking initiative requires banks to let FinTechs access customers’ account information. Yapily’s platform is targeted at businesses of all sizes that want to connect with retail banks. It provides an easy way to access customers finaincal data and iniaitiate payments via one secure API. The company says its API enables FinTechs to do it all without the need to juggle hundreds of APIs on their own. Yapily’s customer base includes payment companies, cryptocurrency providers, digital wealth applications and eCommerce companies.
“I believe that we can democratise finance by making it possible for consumers to share their information in seconds through APIs. This can speed up loan approvals for small businesses, or even reduce the cost of all e-commerce transactions by 1 – 2%, a saving which can be passed on to the consumer,” Yapily Founder Stefano Vaccino said in the press release. “There is also a great opportunity here to help people overcome financial exclusion by giving consumers full visibility of their incomings and outgoings, and even warning them if they are embarking on financially [risky] behaviour.”
The capital raise on the part of Yapily comes at the same time that its U.S. rival Plaid is entering the U.K. market. This week Plaid said it chose the U.K. as its first foray in Europe because it has a thriving FinTech market and is among the fastest-growing sectors. According to Plaid, more than 1,600 FinTech companies came out of the U.K., which is expected to double by 2030.
“As we’ve done in the U.S., Plaid will become the foundation for that growth by providing access to a financial network that allows developers to deliver the experience users expect from their financial apps,” wrote Keith Grose, international lead at Plaid.