B2B payments tech startup PayEngine raises $10M Series A for its white-label payments platform for vertical market software vendors
Over the years, many SaaS companies have decided to integrate payments into their platforms to open up new revenue streams. However, maximizing the revenue is something else altogether. That’s why Los Angeles-based tech startup PayEngine is aiming to help vertical SaaS companies maximize their revenues through its white-label payments-facilitation platform.
Today, PayEngine announced it has secured $10 million in Series A funding led by Point72 Ventures, with participation from other high-profile capital equity firms Mucker Capital, BAM Ventures, and K5 Global. PayEngine will use the funding proceeds to grow its team, expand access to clientele, develop more financial product offerings within its platform and shore up its international support.
Founded by Spartak Buniatyan, the PayEngine platform is designed to help vertical market software vendors maximize payment revenue, eliminate liability and reduce complexity, and own and improve customer experience. With PayEngine’s platform, software vendors can set their own rates over interchange, control margins and retain the majority of their profits.
PayEngine claims that its platform can be branded for client use and can be integrated alongside a company’s other core software products in a matter of days.
“Our mission has always been to give clients full control of their payment processing by allowing them to move this function in-house,” said Spartak Buniatyan, founder and CEO of PayEngine. “With this round of funding, PayEngine can continue to add value to our current product line and expand our service line to improve operating performance and mitigate risk.”
“Software companies have the opportunity to generate additional revenue from payments flowing through their platforms, but most lack the resources or desire to become a payment facilitator (PayFac) given the complexity and resources required,” said Adam Carson, operating partner at Point72 Ventures. “PayEngine is a PayFac-as-a-service platform that enables software companies to monetize the payments flowing through their platforms quickly and easily.”
PayEngine’s platform helps SaaS companies across a range of verticals including home services, automotive, construction, healthcare, and transportation improve their payments monetization strategies while mitigating Merchant of Record (MOR) liabilities and data security and compliance issues.
“It is gratifying to know that Point72 Ventures and our other funding partners see the disruptive potential of PayEngine’s product line,” Buniatyan said. “This Series A support will allow us to improve the customer experience, provide more innovative services and expand our access to clientele that have been historically underserved or ignored.”