Stripe led a $ 12 million tour of Series A at Manila-based online payment platform PayMongoThe startup announced today.
PayMongo, Providing an API for online payments to businesses in the Philippines, it was the first Filipino-owned fintech startup to participate in the Y Combinator acceleration program. Y Combinator and Global Founders Capital, another former investor, have both returned to Series A, which also included participation from new backer BedRock Capital.
PayMongo partners with financial institutions, and their products include a payments API that can be integrated into websites and apps, allowing them to accept payments from bank cards and digital wallets such as GrabPay and GCash. For social commerce sellers and others who sell mostly through messaging apps, the startup offers PayMongo Links, which buyers can click to send money. The PayMongo platform also includes features such as a fraud and risk detection system.
In a statement, Noah Bieber, Stripe’s Asia Pacific Business Leader, said he invested in PayMongo because we “were impressed by the PayMongo team and the speed with which they made digital payments within the reach of many companies across the Philippines.”
startup It was launched in June 2019 with initial funding of $ 2.7 million, Which the founders said was one of the largest incorporation rounds ever raised by a Philippines-based fintech startup. PayMongo has now raised nearly $ 15 million in financing.
Co-founder and CEO Francis Plaza said PayMongo has processed nearly $ 20 million in payments since its launch, and has grown at a rate of 60% since the start of the year, with an increase after closures in March.
He added that the company originally planned to start raising the Series A in the first half of next year, but the growth in demand for its services during COVID-19 prompted it to start the tour early so it can rent its product and design. Engineering teams will accelerate the release of new features. This will include more online payment options; Billing and marketplace features; Support for business models such as subscriptions; And faster payout cycles.
PayMongo also plans to add more partnerships with financial services providers, improve fraud and risk detection systems and secure more licenses from the central bank so it can start working on other types of financial products.
Startup from between Financial technology Companies in Southeast Asia that have experienced rapid growth such as The COVID-19 pandemic has driven many businesses To further digitize their operations. Plaza said total digital transactions in the Philippines grew 42% between January and April due to lockdowns in the country.
He added that PayMongo is currently the only payments company in the Philippines to have a setup process developed to be fully online, which makes it attractive to merchants who are accepting payments online for the first time. “We have a more efficient review of compliance requirements for rapid approval of orders so that our merchants can use our platform right away and make sure we get a fast return for our merchants,” said Plaza.
If the momentum continues even with the lockdowns lifted in different cities, then the Central Bank of the Philippines is on its way to Achieve its goal of increasing the volume of electronic payment transactions to 20% of total transactions In the country this year. the government Policies began in 2015 to encourage more online payments, In an effort to boost economic growth and financial inclusion, given the high prevalence of smartphones in the Philippines, but many people do not have a traditional bank account, which often charges high fees.
Although lockdown restrictions have been eased in the Philippines, Plaza said PayMongo is still seeing strong traction. “We believe that digital transformation by Philippine businesses will continue, largely because both merchants and customers continue to practice safety measures such as staying at home and choosing to shop online despite more lenient quarantine levels. The Internet will be the new normal for commerce “.