E-wallet payment processor GATE, formerly TokenID, has reportedly netted $3.2m in a seed round.
Orco Investments led the round, with commitments also coming from entrepreneurs Jacob Shochat and Alex Jurovitsky, according to a report by Finextra.
New York-based GATE enables the acceptance of e-wallet systems online and at physical merchants in a risk and fraud-free solution. The company processes e-wallet payments by converting them into credit card transactions. The system works by creating a unique 16-digit credit card number for transactions and then making the number useless after the transaction is complete.
Capital from the round will be used for R&D, scaling its sales and marketing efforts and client acquisition, it said. Following the deal, GATE is launching its beta test with a global e-wallet company.
Orco Investments looks to make investments in companies within financial, technology, wellness and manufacturing industries that have an EBITDA range of $500,000 – $3m.
Earlier in the week, cryptocurrency trading and data service provider BitKan closed its Series B round on $10m, with the company being valued at $100m. The company also offers users a platform to view prices, monitor mining, and access e-wallet services.
Both funding and deal activity declined in H2 2017 after a strong second quarter, according to data by FinTech Global. Overall investment to the payments and remittance sector was down by 30 per cent in 2017, falling from $7.3bn raised in 2016.
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