B2B payments network Finexio has raised $1m in seed funding. The round was led by James R. Heistand with participation form New York-based startup lab Loeb.nyc, as well as other fintech angel investors.
The company claims that as much as 50% of the US’ B2B commercial spend -worth about $12tn – still takes place on paper due a lack of efficient and cost effective payments solutions.
Finexio offers what it calls a ‘network of networks’ to intelligently route payments on and off existing ACH and credit card rails to find the best possible transaction price.
“Having spent years as financial processes consultants and working at large fintech and payments companies, we experienced first-hand the paper based, slow manual delivery of virtual credit cards,” says Finexio CEO and Founder Ernest Rolfson.
“These cards are currently mindlessly printed on tens of thousands of pieces of paper monthly, then mailed or faxed to suppliers. Not only are these suppliers forced to undergo a costly manual effort to receive their money, but they also are forced to pay a 3.5% to 5% fee for processing costs. We knew there was a better way to both pay and get paid as tens of thousands of suppliers, many of them small businesses, deserved better.”
The company says the capital will be used to further enhance its platform and develop additional integrations to extend its reach to more suppliers.
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