Privacy.com, the virtual card payments startup, has raised $10.2 million in a Series A round, according to reports.
The round was led by Teamworthy Ventures, and also featured contributions from Tusk Venture Partners, Index Ventures, Quiet Capital, Exor Seeds and Rainfall Ventures.
Privacy.com’s service allows users to create virtual, disposable payment card numbers for no cost. Its intended use is to combat the widespread fraud and scams going on in relation to digital payments, and can let users cut off some companies from their bank accounts. The idea has proved popular, since Privacy.com has handed out 5 million virtual card numbers for users.
Chief executive Bo Jiang has said the new funds from the Series A will go toward helping the company put out its new Card Issuing API, which has been in beta testing since the last year. The feature will allow corporates to issue virtual cards and handle back-end expenses for employees in the companies’ own systems.
Virtual credit cards have become a flexible mode of payment, particularly as the world speeds more toward the digital world of payments.
According to a PYMNTS report from January, the implementation of virtual cards can improve accounts payable (AP) functions, allow greater control over cashflow, and help protect against fraud. The method can only be utilized for specific scenarios like online or mobile purchases or AP payments, so the expansion of mobile device usage has been a boost.
Privacy.com looks to primarily serve early-stage enterprise companies that Jiang said “traditionally need a lighter weight solution for their online payments,” according to reports.
“It’s an underserved market, because most incumbents focus on the larger enterprise with monthly minimums and long time frames,” Jiang said.
Jiang said he also wants to speed up development of products in general to help push more support for enterprises.
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