London-based Banked, provider of an account-to-account payment method enabling consumers to avoid the card schemes at checkout and pay from their existing mobile banking app, has raised over over $15 million in a Series A extension round, led by global software investor Insight Partners and supported by Citi and National Australia Bank Ventures.
Newly announced commercial partner and global payments firm Rapyd also participated in the round.
This latest infusion of capital brings Banked’s total investment raised to date to over $50 million.
Founded in 2018 and kickstarted by regulatory changes across Europe with Open Banking, Banked's Pay by Bank software provides an alternative to credit card schemes by giving consumers the option to choose their existing bank at checkout. Users are then securely connected to their mobile banking app to biometrically authenticate the purchase.
The software suite includes a checkout API for businesses to embed on their Websites and a P2P banking app for consumers.
The company charges a flat fee of 0.1% to process payments. Its software also transfers money without sharing customer bank details, with a claimed 96% reduction in fraud.
The Series A extension comes as a result of an oversubscribed $20 million round earlier this year that was led by Bank of America to support the company's exentions into North America.
In a demonstration of Banked’s commitment to the US the firm opened an office in Palo Alto, California and relocated CEO Brad Goodall from London to lead this expansion.
“Pay by Bank is taking off globally," says Brad Goodall, Banked CEO. "Leading banks recognise the significant opportunity it presents to improve the end-customer experience and merchant value proposition. There is a queue forming to be part of the new payment network and to help shape its future with a seat at the table. Banked has a unique partnership model which relies on global go-to-market partners in the shape of banks, PSPs and technology platforms.”