Aeropay Raises $20 Million for Pay-by-Bank Offering
Digital payments company Aeropay has raised $20 million in new financing.
The company, which specializes in pay-by-bank, announced the Series B funding in a Thursday (May 16) press release, saying it would use the financing to develop new products, enhance strategic partnerships and “explore greenfield opportunities.”
Aeropay, which got its start in the cannabis and gaming industries, connects bank accounts using Aerosync, a homegrown bank aggregator that the company also announced in the release. The platform allows for customizable integrations via a full suite of open APIs, offering “industry-high approval rates” while minimizing return and fraud risk.
“Payments in most verticals operate on archaic systems filled with excessive fees and risks,” said Aeropay founder and CEO Daniel Muller in the release. “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.”
The PYMNTS Intelligence study “Tracking the Digital Payments Takeover: Consumer Familiarity Controls Account-to-Account Payment Growth” showed a high level of satisfaction among pay-by-bank users, with 84% saying they were either very or extremely satisfied with their most-used pay-by-bank platform.
“This could be attributed to these platforms’ success in making the payment experience not just seamless but also part of an ecosystem where users frequently interact and transact,” the study noted. “Because consumers complete many of these transactions within a known network — sending money to the same recipients — the comfort and trust levels are higher, reinforcing platform loyalty.”
Meanwhile, additional PYMNTS Intelligence showed that a knowledge gap could be keeping pay-by-bank, also known as account-to-account payments, from wider adoption.
While 36% of consumers use these methods, the same number here of people said a lack of understanding is holding them back from using pay-by-bank.
However, professionals working in the sector have taken note of consumers’ confusion and the challenges it presents.
Ed Dean, vice president of product at Nuvei, told PYMNTS in an interview last year that there is a lack of familiarity that’s holding back the wider use of pay-by-bank, and this stems from newer use cases being fashioned around older payment systems.
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