Plastiq, a US startup that lets users pay any bill by credit card, has raised $27 million in a Series C funding round led by Kleiner Perkins with participation from DST Global.
San Francisco-based Plastiq enables business owners and consumers to use a credit card for virtually any expense, even ones that normally require a cheque. The service acts as a middle man. Users pay Plastiq with their card and, for a flat 2.5% fee, the firm then pays the ultimate recipient by cheque or wire transfer.
The new funding will be used to expand partnerships and make a deeper push into helping business owners unlock credit.
According to Bank of America, more than two out of three businesses plan to expand in the next five years, yet one in three express concern about credit availability. Plastiq argues that for many businesses, credit cards are their most accessible financing tool, providing a revolving line of credit they can immediately use to fund or expand business operations.
Its service means that business owners can pay virtually all their expenses by credit card, which allows them to better manage cash flow, tap early pay discounts and earn card rewards.
"Business owners and consumers alike have told us they want to use their credit cards to pay any expense they wish, whether it’s business supplies or rent,” says Eliot Buchanan, CEO, Plastiq. “This latest investment will help us make Plastiq more available to our customers wherever is most convenient for them.”