SaaS Platform Datam, which lets Firms Take Card Payments in Minutes, Raises £560K+ via Seedrs

Datam, a new software-as-a-service (SaaS) platform that allows companies or businesses to begin accepting card payments within minutes, has raised £560,920 of its £550,001 target from 224 investors (at the time of writing) via Seedrs. There are 24 days left in the company’s sale, as of August 15, 2021.

Based in Lichfield, United Kingdom, Datam mainly focuses on the SaaS/PaaS Digital B2B sectors.

Incorporated in November 2017,  the company reports a valuation (pre-money) of £11.7M, 4.56% equity offered, a £1.08 share price, tax relief, and EIS.

Here are some notable business highlights:

  • New SaaS platform designed to revolutionise the payments industry
  • Enabling SMEs to start taking card payments in just 5 mins
  • Working with VISA to demonstrate the value of the Datam platform
  • An estimated 450,000 UK SMEs renew their card services each year

Last year, over 50% of all payments in the UK had been performed via cards, with cash payments declining by more than a third from the previous year. Notably, there were 13 million consumers in 2020 alone that used cash only once each month or not at all.

Because of these changes in consumer behavior, small businesses in the UK “must be equipped to take card payments and respond to this rising consumer demand,” the Datam team notes. And yet it can “still take anything from 3 days to 3 months for a business to be able to start taking card payments; a process that jumps through a wide range of hoops from the initial salesperson (ISO), the bank (acquirer) and up to 4 other different stakeholders before the process is complete,” the company added.

The process “is inefficient, expensive and largely paper-based,” according to Datam.

As noted in the update, Datam was launched in order to enhance this process. The company aims to “encompass the entire value chain within one central cloud hosted hub, enabling businesses to get up and running in just 5 minutes.”

While sharing their monetization strategy, the company explained:

“Datam receives a small percentage of the turnover of every business that applies for a credit card processing account via the Datam platform. The percentage is paid by the credit card industry as a small share of their margin. All these small percentages gross up into perpetually repeating revenue.”

They added:

“Acquirers – this is the bank that processes card payments on behalf of a business and is integrated with VISA & Mastercard. We receive a monthly commission fee on the card transactions processed by businesses onboarded using the Datam platform.”

They further noted:

“Independent Sales Organisations (ISOs) – ISOs work on behalf of acquirers to source customers for them. Datam receives subscription fees from ISOs so they can use the platform to onboard merchants plus an application processing fee.”

Hardware Finance Companies – Datam “receives an application processing fee each time a merchant onboarded using Datam takes out finance in order to fund the purchase of their chip and pin machine.”

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