TrueLayer, the open banking API supplier, divulges investment and partnership with Visa
TrueLayer, the London start-up that’s constructed a designer API platform for fintechs and other adjacent companies to utilise open banking, has agreed to a strategic and commercial relationship with Visa. The partnership sees Visa also take a minority stake in TrueLayer as part of the business’s $35 million Series C funding revealed in June.
The round was led by Tencent and Temasek, with involvement from previous financiers Northzone and Anthemis, while we now understand that Visa was on-board too. TrueLayer has raised $47 million to date.
Francesco Simoneschi, CEO and co-founder of TrueLayer, informs me the Visa partnership will make it possible for the fintech to deal with a “huge network” of organisations and banks to assist them establish open banking services and applications that will “offer concrete benefits” to customers.
” We desire to scale open banking to a level where it manifestly affects every element of monetary services for customers,” he says. “[This] requires big, recognized players to come on board and deal with start-ups like us. Visa has actually been among the most successful ‘fintech’ business ever created, [and] we eventually have a lot to gain from them.”
Furthermore, Simoneschi states the partnership is a key part of TrueLayer’s twin objectives of ending up being a global platform and growing the open banking economy. The fintech is currently open for company in the U.K., Germany, France, Italy and Spain, and recently expanded to Australia. It works with business such as Revolut, Zopa, ClearScore, Plum, Emma, CreditLadder, Canopy and ANNA Cash.
” Our view is that any effort that allows more companies to welcome open banking is great for everybody involved– from fintechs to customers,” says the TrueLayer CEO.
Visa’s SVP of Open Banking, Mark Nelsen, says that working with TrueLayer will enable Visa to explore new chances for its clients and for the Visa network. “Our collaboration with TrueLayer is another example of how we’re investing in business that use next generation services, enabling development and convenience for clients and customers alike,” he states.
” I would not wish to speak for Visa, however I believe that TrueLayer has a mix of elements that are appealing,” says Simoneschi. “We were one of the very first movers in the U.K. for open banking which allowed us to develop our service in line with the requirements of our customers and subsequently rapidly grow our consumer base. We now are accountable for about 65%of all open banking traffic in the U.K. This offered us the launchpad to scale throughout Europe– and most recently to become the very first European open banking specialist to introduce in Australia. Throughout this process, we’ve established a track record for operating in partnership with organisations of every size, from banks down to early-stage start-ups. It actually is these collaborations, aligned with our experience, that I think makes us various.”
With that stated, Simoneschi stresses that he doesn’t see the industry as a “no amount game” which there is a big opportunity for scores of companies to do well. “If we can work together to get more people to accept open banking, everybody wins,” he includes. “It is maybe this mindset that was an important element for Visa.”