TxVIA, a payment processing company, announced late Tuesday that it has raised $27.5 million in a Series D round led by Oak Investment Partners, with participation from previous investors Bain Capital Ventures, Espirito Santo Ventures, and Village Ventures. This round brings the New York-based startup’s total funding to $55.4 million since its founding in 2006.
The funds will be used to expand its platform-as-a-service (PaaS) delivery model for processing prepaid and emerging payments. TxVIA’s unique PaaS model is a customizable cloud computing model that allows clients to pick from TxVIA’s selection of applications for processing payments without having to purchase and maintain the hardware and software that typically goes along with it.
For example, a retailer offering its own line of gift cards would be able to cut out a lot of the time spent building and integrating the software and infrastructure, and instead has the option of offering the program quickly and directly to consumers.
“Instead of offering a one-size-fits-all processing platform, we’ve created the payment industry’s first ‘platform builder’ allowing us to provide segregated, multi-tenanted processing platforms that do exactly what our clients want them to do,” said TxVIA CEO Anil D. Aggarwal, in the company’s press release. “To get there, we've brought an important first to market—we've separated business requirements from technical implementation—which we believe is critical to move from an environment of incremental change to transformational improvement.”
TxVIA processes a number of prepaid cards, including gift cards, rewards cards, incentive payments, government disbursements, general purpose reloadable cards, payroll, and expense management cards. Presently, the company has 30 million cards on file and says it’s on track to double that number by the end of the year through organic growth and portfolio conversions.
Some of TxVIA’s clients include Blackhawk Network, a global distributor of gift cards; Spanish-language broadcast media organization Univision Communications, and InteliSpend, formerly known as American Express Incentive Services.
“The payments landscape is changing in significant ways with both established companies and new entrants innovating at a rapid pace,” said Annie Lamont, managing partner at Oak Investment Partners, in a prepared statement. “These organizations need processing solutions to commercialize new payment applications, and we believe TxVia has built the leading technology for that.”
As part of the latest round of funding, Annie Lamont will be joining TxVIA’s board of directors, along with Tricia Kemp, director of financial services technology at Oak Investment Partners.
Image source: moneycard.org
