Link, a San Francisco, CA-based provider of an open-banking powered payment platform, raised $20M in Series A funding.
The round, which follows $10M in a previously unannounced Seed funding round led by Tiger Global with support from Amplo, Pareto Holdings, and Quiet Capital, was led by Valar Ventures.
The company intends to use the funds to accelerate growth and expand operations.
Co-founded by Eric Shoykhet and Edward Lando, Link provides LinkPay, an open banking-powered payment solution focused on the U.S. that empowers consumers to make digital payments using their bank accounts. LinkPay is currently live and already has several billion in payment volume committed from enterprise merchants such as Misfits Market, Thrivos, Play by Point, and Passport Inc. Shopify merchants such as Beddy’s, KimC Market, Bausele, and Overeasy have been able to use LinkPay using its Shopify App. LinkPay leverages the ACH Network and proprietary machine learning technologies to deliver a low-cost and secure payment solution that provides:
- Savings: LinkPay low transaction-related fees for merchants.
- Fraud-reduction: reduces fraud through consumer authentication that minimizes the risk of unauthorized transactions and, as a result, cuts down on reversals.
- Compliance: leverages security at the forefront – Link is SOC 2 certified and ISO 27001 compliant.
- Increased sales and reduced churn: it allows customers to connect their accounts once, and keep paying, thereby reducing churn for merchants with subscriptions and repeat purchases. Bank accounts are subject to less switching and cancellation than credit and debit cards, and they don’t expire.
- Banking coverage: partners with a majority of banks and credit unions in the U.S., which today includes ~95% of all bank accounts.