Global open banking platform TrueLayer raised $130 million in a funding round led by new investor Tiger Management with participation from Stripe, giving the startup a post-money valuation topping $1 billion.
Francesco Simoneschi, CEO and co-founder of TrueLayer, said in a press release emailed to PYMNTS on Tuesday (Sept. 21) that businesses worldwide are discovering that time is running out on “outdated, expensive” payment systems that are “not fit for the digital age.”
“TrueLayer is carving a new world of payments altogether, which can deliver a fundamentally faster, safer and more user-friendly experience that also improves conversion and delivers higher revenues for merchants,” Simoneschi said.
He added that the company is building “account on file services” on top of its open banking system after “merging Variable Recurring Payments (VPRs)” and direct debit.
“There is an opportunity to rewire the financial system from the ground up and we are leading that evolution through open banking payments,” Simoneschi said.
See also: TrueLayer, Cazoo Collaborate on Payments
The fresh infusion of capital will be used by the open banking pioneer to launch a new global payment network enabling instant and recurring payments available around the world. The new funds will also be used to tap eCommerce to advance the mainstream adoption of open banking payments.
TrueLayer’s network provides over 95 percent of coverage in the U.K. and major European markets and is responsible for over 50 percent of all open banking traffic in the U.K., Ireland and Spain.
Launched in 2016 and headquartered in London, TrueLayer had grown monthly payment volume 400 percent and monthly payment value 800 percent just in 2021 alone. The startup has processed billions in payments, expanded across Europe, and doubled its user base, according to the release.
Luca Martinetti, co-founder and CTO at TrueLayer, said he and Simoneschi founded the company with the conviction that open banking would “act as a catalyst for fundamental change in financial services.”
He added that TrueLayer developed its platform with a concentration on “quality engineering and user experience aligned to product development.”
TrueLayer is used for payments by millions of individuals and businesses via such brands as Freetrade for investing, Revolut for banking, Cazoo for automobiles, and more. On average, 1 in 3 consumers makes payments using technology powered by TrueLayer.