Canadian fintech startup Paystone secures $30 million investment from Crédit Mutuel Equity to accelerate growth
Paystone, an Ontario, Canada-based fintech startup that provides software and payment processing for businesses, announced Friday it has closed a $30 million investment from Crédit Mutuel Equity to accelerate growth and further expand its electronic payments and customer engagement technology platform. The new investment brings total funds raised in 2021 to $99 million.
Founded in 2009 by Abdullah Saab, Joe Jongsma, and Tarique Al-Ansari, Paystone’s integrated suite of automated payment processing, customer loyalty, and gift card solutions help merchants turn everyday transactions into meaningful customer interactions.
Paystone’s payment solutions are used at over 25,000 merchant locations across Canada and the United States, collectively processing over $10 billion dollars a year in bankcard volume, including The ALDO Group, The Source, Booster Juice, Global Pet Foods, Kernels Popcorn, and 50 of the MTY Food Group’s restaurant brands.
Paystone’s electronic payments and digital tools are well situated for businesses recovering from the global pandemic. According to the latest report by Payments Canada, the shift to a cashless society accelerated in 2020 with credit card payments exceeding 70 percent of total transactions in Canada. Nearly 3.2 billion of those transactions were contactless, up 55 percent over the previous two years.
“Winning more customers is a universal need among businesses of all sizes, and our integrated platform that seamlessly combines electronic payments acceptance with customer growth tools is the first of its kind in the market,” says Tarique Al-Ansari, CEO of Paystone.
The company’s consistent revenue growth also earned Paystone a #84 ranking on The Globe and Mail’s 2020 list of ‘Canada’s Top Growing Companies’ and the #61 spot on The 2020 GROWTH500 list by Canadian Business. In addition to its impressive organic growth, Paystone completed five successful acquisitions in the past 18 months including the Forrester recognized DataCandy.
“An investor with the caliber of Crédit Mutuel Equity sets the stage for our company’s global expansion and opens doors beyond North America,” says Al-Ansari. “The support from such a highly respected European investor paired with our existing backers positions Paystone to continue to capitalize on both our organic and acquisitive growth strategies.”
The recent financial investments combined with Paystone’s pandemic-driven growth continue to accelerate the strategic evolution of the fintech company. Paystone entered the U.S. market for the first time in 2021 and is one of the fastest-growing businesses in Canada with more than 30,000 merchant locations throughout North America.
“Paystone’s track record is very impressive, like its young and talented management team. The company has a comprehensive product roadmap and a very compelling growth strategy, and we intend to further support Paystone in becoming a differentiated leader in this extremely dynamic market,” said David Dickel, Managing Director of Crédit Mutuel Equity in Canada. This transaction brings Crédit Mutuel Equity, an evergreen fund, as a minority shareholder in Paystone.