Aeropay, a provider of Pay-By-Bank solutions for businesses, today announced $20 million in Series B financing.
Los Angeles-based fintech venture capital firm Group 11 led the round “with participation from Chicago Ventures and Continental Investment Partners.”
The investment round comes at a time when Aeropay says it “has experienced 10X revenue growth over the past year and is processing over $1B in volume annually.”
Aeropay, which helps businesses “move money faster, affordably and securely with its proprietary Pay-By-Bank technology, reached cash-flow profitability in Q4 2023.”
Aeropay’s platform connects bank accounts “using Aerosync, a homegrown bank aggregator that the company also announced.”
The platform enables customizable integrations “via a full suite of open APIs.”
The commercial impact for businesses “is significant, with industry-high approval rates while minimizing return and fraud risk.”
Aeropay Founder and CEO Daniel Muller said:
“Payments in most verticals operate on archaic systems filled with excessive fees and risks. We’ve built a bank-driven payments network that protects businesses against fraud, saves them money, and gives their customers an easy way to pay. Put simply, we are building the next-generation payments network.”
Aeropay has become a leader in account-to-account (A2A) payment solutions through a “compliance-first” strategy focused on collaborating with banks, partners, and regulatory counterparts.
The company experienced early success “in highly regulated industries and is now expanding into new markets such as financial services, wellness, utilities, QSR and property management.”
Additionally, the new funds will be used “to develop new product offerings, enhance strategic partnerships and explore greenfield opportunities.”
Dovi Frances, Founding Partner of Group 11, said:
“For years, we’ve searched for a company advanced enough to solve the pains and inefficiencies of the card payment market, arguably the last bastion of the traditional financial services industry. Aeropay has tackled the most complex technological and compliance challenges, making them the most likely player to seize upon this massive addressable market.”
As noted in the update, Aeropay is a financial technology company “providing open banking and account-to-account payment solutions for businesses.”
With Aeropay, businesses can “offer cost-effective, fast and secure digital payments to their customers both in-store and online. Enabled by sophisticated technology, with compliance at the core, Aeropay is the better way to move money.”
