Alternative Payments Raises $22 Million for B2B Platform for ‘Underserved Industries’

Alternative Payments raised $22 million in total funding to accelerate the development and adoption of its integrated B2B payments and checkout infrastructure.

With this platform, the company aims to digitize and automate B2B payment workflows for industries that have been underserved by the FinTech industry, including IT service providers, managed services providers and blue-collar industries, Alternative Payments said in a Thursday (April 24) press release.

“This raise marks an exciting new chapter for Alternative Payments, allowing us to scale our impact, expand globally, and continue building the infrastructure that will define the future of seamless, secure payments for underserved industries,” Alternative Payments CEO Baxter Lanius said in the release.

Businesses in the sectors targeted by Alternative Payments still rely on outdated systems for managing accounts receivable and payable, accessing merchant services and offering client-facing financing, according to the release.

The company aims to provide these businesses with a modern, streamlined alternative in the form of its turnkey, automated platform, the release said, adding that the platform delivers solutions to B2B challenges like invoice processing, invoice deliverability and cross-border transactions.

With this platform, Alternative Payments’ customer base has reduced its days sales outstanding by 40% to 50%, per the release.

Rob Metzger, general partner at MissionOG, which led one of the company’s funding rounds, said in the release that Alternative Payments is bringing “modern, autonomous payment solutions to B2B sectors often ignored by legacy providers.”

“Their focus on automation, ease of use and advanced analytics positions them to lead the transformation in how businesses manage payments and cash flow,” Metzger said.

Ninety-five percent of companies that fully automate their accounts payable processes see increased accuracy, efficiency and operational improvements, according to the PYMNTS Intelligence report “Why Automating Both AR and AP Is Vital to Fiscal Fitness.”

The report found that the move toward full automation is gaining momentum, with 64% of firms having automated at least some part of their accounts payable processes and 65% having automated part of their accounts receivable.

Solutions like these that help businesses get paid faster are especially important at a time of rising costs, volatile markets and economic uncertainty, Alternative Payments said in a Thursday blog post.

“In uncertain times, that’s not just helpful — it’s critical,” the company said.

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