Payments gateway ConnexPay raised $20 million in a Series B funding round led by card issuing platform Marqeta, according to a press release emailed to PYMNTS on Thursday (Dec. 9).
A Marqeta customer since 2018, ConnexPay links acceptance and issuance for marketplace companies and commerce intermediaries. The fresh infusion of capital brings the company’s total fundraising to $35 million.
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Marqeta’s backing of ConnexPay marks its first corporate investment since going public on Nasdaq in June. The investment gives Marqeta a seat on ConnexPay’s board.
“ConnexPay’s platform solves for the complexity of marketplace and intermediary business models, which have to deal with convoluted money flows and constant margin pressure. We see a lot of possibilities around the optionality their platform provides for payment acceptance, delivery and timing, offering innovators the ultimate control over funds across multiple money movement rails,” said Renata Caine, SVP, International, Strategy & Planning at Marqeta.
“ConnexPay’s ability to withstand the demands of COVID-19 in the travel vertical while growing and expanding their business to new verticals is a testament to their team and technology, and we’re excited for what’s in front of this company,” Caine added.
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Founded in 2017, ConnexPay was originally developed for the travel sector. Since COVID-19 took a global hold in March 2020, the company has rebuilt its volume to pre-pandemic levels. It also moved into complementary verticals like eCommerce and commerce intermediaries and is anticipating revenue to grow five times in 2022.
ConnexPay said it thinks it is the first company to connect both sides of the payment ecosystem — card issuing and payment acquiring services. In specific verticals, like marketplace businesses or commerce intermediaries, ConnexPay can seamlessly connect payments by acting as both acquirer and issuer.
“Whereas other companies offering issuing and acquiring require negotiating multiple contracts, account teams and technology integrations, ConnexPay requires just one integration point,” according to the release.
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