Aug 20, 2020

Form3 receives $33mn investment for cloud-native payments

Form3
Lloyds Banking Group
payments solutions
Nationwide
William Girling
2 min
Form3's partnership with Lloyds, Nationwide, et al, continues a market trend that favours digital transformation in the wake of COVID-19
Cloud-native payment solutions fintech Form3 has received US$33mn in a strategic equity investment round, featuring Lloyds Banking Group...

Cloud-native payment solutions fintech Form3 has received US$33mn in a strategic equity investment round, featuring Lloyds Banking Group.

Capable of delivering instant payments to customers in the UK and Europe through its integrated PaaS (payments as a service) platform, Form3 seeks to eliminate the need for expensive and cumbersome infrastructure, drive product innovation and enhance security.

Other investors joining Lloyds include Nationwide and venture capital firm 83North. Form3 will use the funds to further expand its business, which has reportedly already grown by 160% since its Series B round in November 2018.

Keeping the payments sector lean and agile

Growing interest in digital payments solutions among big-name UK high-street entities is an ongoing trend, with Samsung recently partnering with Curve on its new Pay Card.

The digital transformation which has been accelerated by the COVID-19 pandemic appears to be forcing established companies to reassess their infrastructure. Indeed, as was highlighted in Rapid7’s NICER, these are the companies most likely to have outdated legacy systems.

Michael Mueller, CEO at Form3, considers that this trend will continue to develop: “The big trend is that cloud-native solutions are now becoming part of almost every core strategy for managing mission critical infrastructure among Tier1 banks and fintechs and we are here to help them implement that.”

This is certainly confirmed in the case of Lloyds, whose Group CIO, John Chambers, stated: “"As part of our ongoing digital transformation we are committed to providing banking services that are simple and easy to use.  

“Our new strategic partnership, alongside the additional investment announced today, will provide us with the opportunity to implement a cloud native, real-time payment platform to meet our customers’ evolving needs.”

Collaborating on the future

Form3 and Lloyd’s partnership appears to be deepening; their collaboration formally began in July 2020 and the latter’s commitment to simplifying, strengthening and streamlining its payments architecture hasn’t wavered.

“We believe this is an opportunity to support Lloyds’ transformation using our rapidly evolving technology,” added Mueller. “The partnership is breaking new ground in collaboration by enabling Lloyds to utilise best-in-class software built to harness the unique properties of the cloud.”

Image courtesy of Form3

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Jun 22, 2021

Payment startup Mollie raises US$800m at a $6.5bn valuation

Fintech
Mollie
Valuation
Payments
3 min
A new funding round values Mollie at US$6.5bn making Mollie the third most valuable privately-held European fintech behind Klarna and Checkout.com

Mollie, one of the fastest-growing payment processors within Europe, today announced it has raised US$800m in a Series C funding round, now valuing the company at $6.5bn. The valuation, based on Dealroom data, makes Mollie the third most valuable privately-held European fintech behind Klarna and Checkout.com.

Blackstone Growth (BXG), Blackstone’s growth equity investing business, led the investment and included participation from EQT Growth, General Atlantic, HMI Capital and Alkeon Capital. TCV who led the Series B investment in September 2020 also participated in the funding round. 

According to the company, the funding will fuel Mollie’s international expansion, team scaling, and continued investment in product and engineering.

“There’s something very special about Mollie. In the three months since I joined the team we’ve achieved so much: making preparations for a full launch in the UK, driving 600% growth in Germany and hiring an impressive set of team members and executives,” said Shane Happach, CEO, Mollie. “Over the past months, Mollie has been receiving a remarkable amount of interest from some of the world’s foremost fintech investors. In bringing on BXG, we believe we have an investor who can help Mollie in our next phase of growth. The involvement of our new group of investors demonstrates confidence in Mollie’s growth, strategy and product set.”

The Amsterdam-based business was launched in 2004, and is one of the largest PSPs in Europe. Today, it serves more than 120,000 monthly active merchants of all sizes across the continent. During 2020, Mollie processed more than 10 billion Euros in transactions and is on track to handle more than 20 billion Euros during 2021. 

“Mollie is one of Europe’s most exciting high-growth businesses and is at the forefront of enabling next-generation payments for online SMEs across Europe. We are excited to partner with Mollie’s fantastic team and look forward to leveraging Blackstone’s capital, expertise and global network to unlock the company’s next phase of growth,” said Paul Morrissey, who leads European investing for Blackstone Growth. “This investment underlines Blackstone’s confidence in Europe as a place for high-growth companies to thrive.”

Competition 

In Europe, FinTech app usage grew by 72% directly after the pandemic outbreak, while the top seven digital banks in the US grew their cumulative user base by 39% throughout the year. Competition in payments has grown over the past few years with fintech players like Stripe, Square and Netherlands-based Adyen all competing for a bigger share of the market.

Unlike its American rivals, Mollie says it mainly focuses on transactions with small businesses in Europe. Shane Happach, CEO of Mollie said: “A lot of the bigger players in online payments come out of the US, like PayPal,”. Adding that even Visa and Mastercard are US companies.

“A lot of investors don’t have a bet on Europe,” Happach said. “Mollie’s one of those unique assets that offers exposure.

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