Dutch fintech startup Payaut lands $8.7M Seed round from Gradient Ventures, Google’s AI-focused Fund, to expand across Europe

Payaut, an Amsterdam-based fintech startup that provides an automated payment solution for online platforms and marketplaces, has raised an $8.7 million (€8 million) seed round led by Gradient Ventures, Google’s AI-focused venture fund, with participation from existing investors LocalGlobal and Entrée Capital.

Payaut will use the fresh capital infusion to expand operations across Europe including the rollout of its new multi-currency platform. This will enable Payaut customers to accept payments in currencies including USD, GBP, JPY, and AUD (*). By expanding beyond EUR payments, Payaut will also be positioned to enter markets outside of Europe. Payaut plans to begin its expansion drive by increasing its presence in Germany, Southern Europe, and the Nordics.

To date, Payaut has raised a total of €11.65 million in investments from international parties and angel investors from the payment industry. In addition to further developing its platform, Payaut will also use the new funding to increase its team from 25 to 40 employees over the next year.

Founded in late 2019 by Ernst van Niekerk, The startup acts as an intermediary between sellers and different Payment Service Providers, meaning marketplaces can use multiple providers at the same time. With Payaut, these online marketplaces can seamlessly pay their sellers and ensure compliance with PSD2 legislation while having flexibility on which payment provider(s) they use.

Payaut also provides automated solutions such as reconciliation, balance management, invoicing, seller verification through KYC checks, and split payments. The API-driven platform enables customers of any size to efficiently and securely manage their payments and finances while also remaining compliant with legislation such as PSD2.

Crucially, Payaut acts as an intermediary between sellers and different Payment Service Providers (PSPs). As a result, marketplaces are not dependent on one single PSP but instead can use multiple providers such as Mollie, Adyen, PayPal or Stripe at the same time.

Ernst van Niekerk, CEO and Founder of Payaut, said: “This is a critical step in Payaut’s journey. The funding will enable us to fulfill our ambition to become the solution of choice for marketplace platforms worldwide. Not only will we be able to expand our platform to provide new solutions, we will also be able to increase our presence across a number of major new markets. “We’re very pleased Gradient Ventures has invested. It’s a great vote of confidence in our team and underlines how we have created an offering that appeals to marketplaces and platforms of all sizes.”

“In the past, marketplaces and eCommerce companies built split payment systems in-house or were tied to a payment gateway solution. With Payaut, small and medium-sized enterprises are empowered to handle KYC/AML, split payments, and multi-PSP configurations themselves,” said Anna Patterson, Managing Partner at Gradient Ventures. “We’re excited to support Ernst and his team as they make this crucial technology more widely available.”