Canada-based Paystone has acquired CAD 30 million in capital from the private equity division of Crédit Mutuel Alliance Fédérale.
Paystone‘s payment processing and customer engagement solutions are currently being used by more than 30,000 merchants in Canada as well as the US. They collectively handle more than CAD 10 billion per year in bank-card volumes.
Paystone’s latest investment round, which has been finalized after a CAD 69 million fundraise by the firm in January 2021, will be channeled towards supporting the Fintech’s ongoing growth and development. Paystone is also expanding operations in US markets.
Tarique Al-Ansari, CEO at Paystone, stated:
“The support from such a highly respected European investor paired with our existing backers positions Paystone to continue to capitalize on both our organic and acquisitive growth strategies.”
As mentioned in a release, the recent financial investments combined with Paystone’s “pandemic-driven” growth continue “to accelerate the strategic evolution of the Fintech company.” Paystone entered the US for the first time this year and claims to be “one of the fastest-growing businesses in Canada.”
As noted in the announcement, Paystone’s electronic payments and digital tools are “well situated for businesses recovering from the global pandemic.”
According to a recent report from Payments Canada, the shift to a cashless society “accelerated in 2020 with credit card payments exceeding 70% of total transactions in Canada.” Almost 3.2 billion of those transactions “were contactless, up 55% over the previous two years.”
David Dickel, MD at Crédit Mutuel Equity in Canada, added:
“Paystone’s track record is very impressive, like its young and talented management team. The company has a comprehensive product roadmap and a very compelling growth strategy, and we intend to further support Paystone in becoming a differentiated leader in this extremely dynamic market.”
This latest transaction brings Crédit Mutuel Equity, an evergreen fund, “as a minority shareholder in Paystone.”