Card-on-File Management Platform Knot Raises $10 Million to Expand Merchant Support

Knot has closed a $10 million Series A investment round to grow its application programming interface-based card-on-file management offering.

The funding will enable Knot to expand its merchant support and continue scaling its services to make payment processes easier for businesses and consumers, the company said in a Thursday (Aug. 3) press release.

“Securing this Series A funding signifies the immense trust our investors have in Knot’s potential to revolutionize the way card issuers manage their customers’ payment methods,” Knot CEO Rory O’Reilly said in the release.

Knot has become a solution for card issuers looking to increase user spend and reduce churn, according to the release. The company’s application programming interface (API) allows card issuers to instantly update card-on-file information at almost any merchant with just a few lines of code, easing the onboarding experience for consumers and increasing revenue and retention for the bank.

PYMNTS research has found that consumers want to be able to transact securely, but they also want that experience to be easy and seamless.

Fifty-six percent of consumers choose stored credit cards over inputting payments information manually because it is more convenient, according to “How We Pay Digitally: Stored Credentials Edition,” a PYMNTS and Amazon Web Services collaboration.

The less customers must do to complete transactions, they happier they are and the more likely they are to complete them, the report said.

Knot’s latest round of funding will allow the company to expand its merchant support and scale additional products such as the Knot Subscription Canceller and Account Creator that help financial institutions integrate seamlessly into their customer’s digital lives, the release said.

The round was led by Nava Ventures, with the list of backers including Amex Ventures, per the release.

Matt Sueoka, senior vice president and global head of Amex Ventures, said in the release: “We see the potential of Knot’s technology to improve the customer experience in updating card credentials on file, while also enabling uninterrupted payments for merchants. We’re excited to support Knot as they scale their current operations and build out new products and services.”