Stripe has led a Series A round worth $ 12 million in Manila-based online payment platform PayMongo, the startup announced today.
PayMongo, The company, which provides an online payment API for businesses in the Philippines, was the first Filipino financial technology startup to participate in Y Combinator's accelerator program. Y Combinator and Global Founders Capital, another former investor, both returned for Serie A, which included the participation of new backer BedRock Capital.
PayMongo works with financial institutions. Its products include a payments API that integrates with websites and apps that allow them to accept payments from bank cards and digital wallets like GrabPay and GCash. For social commerce sellers and other people who primarily sell through messaging apps, the startup PayMongo offers links that buyers can click to send money. PayMongo's platform also includes features such as a fraud and risk detection system.
In a statement, Noah Pepper, APAC chief executive of Stripe, said he invested in PayMongo because "we were impressed with the PayMongo team and the speed with which digital payments were making digital payments more accessible to so many companies in the Philippines".
The startup started in June 2019 with seed funding of $ 2.7 million. According to the founders, this was one of the largest seed capital rounds ever held by a Philippines-based fintech startup. PayMongo has now raised nearly $ 15 million in total in funding.
Co-founder and CEO Francis Plaza said PayMongo has processed nearly $ 20 million in total payments since launch and has grown an average of 60% since the start of the year, with an increase after lockdowns began in March.
He added that the company originally planned to increase its Series A in the first half of next year, but increasing demand for its services during COVID-19 prompted it to start the round earlier in order for it to stop designing its product was able to and development teams and speed up the release of new features. This includes other online payment options. Billing and marketplaces features; Support for business models such as subscriptions; and faster payout cycles.
PayMongo also plans to further partner with financial services providers, improve its fraud and risk detection systems, and obtain more licenses from the central bank to enable the company to work on other types of financial products.
The startup is part of fintech Companies in Southeast Asia that experienced accelerated growth due to the COVID-19 pandemic prompted many companies to digitize more of their operations. According to Plaza, digital transactions in the Philippines rose 42% between January and April due to the country's lockdowns.
PayMongo is currently the only payment company in the Philippines with an onboarding process that has been developed entirely online. This makes it attractive to merchants who are accepting online payments for the first time. "We have a more efficient review of compliance requirements for the rapid approval of applications so our merchants can start using our platform right away, and we are making sure we get a quick payout to our merchants," said Plaza.
If the momentum continues even after the lockdowns in various cities have been lifted, it means the Philippine central bank is on the right track to meet its target of increasing the volume of e-payment transactions to 20% of total transactions in the country this year to increase. The government started setting guidelines in 2015 to encourage more online payments to encourage economic growth and financial inclusion, as smartphone penetration is high in the Philippines but many people do not have a traditional bank account for the often high Fees will be charged.
Even though lockdown restrictions have subsided in the Philippines, PayMongo is still seeing strong traction, according to Plaza. “We believe that the digital transformation through Filipino companies will continue, especially as both retailers and customers continue to take security measures like at home and choose online shopping despite the milder quarantine levels. Online will be the new normal for commerce. "