Travel payment tech provider ConnexPay raises $20M Series B

ConnexPay, a PhocusWire Hot 25 Startup of 2020, has raised $20 million in Series B funding led by card issuing platform Marqeta. 

ConnexPay provides payment gateway technology that combines a merchant acquiring and virtual card issuing system for travel, marketplace and commerce intermediary companies, processing billions in transaction volume.

Founded in 2017, ConnexPay originally focused on the online travel industry. After the slowdown caused by COVID-19, the company says it has now built its transaction volumes to above pre-pandemic levels while also expanding into adjacent verticals of e-commerce and commerce intermediaries. For 2022, ConnexPay is forecasting 5x growth in revenue. 

“ConnexPay’s platform solves for the complexity of marketplace and intermediary business models, which have to deal with convoluted money flows and constant margin pressure. We see a lot of possibilities around the optionality their platform provides for payment acceptance, delivery and timing, offering innovators the ultimate control over funds across multiple money movement rails,” says Renata Caine, senior vice president of international, strategy and planning at Marqeta.

“ConnexPay’s ability to withstand the demands of COVID-19 in the travel vertical while growing and expanding their business to new verticals is a testament to their team and technology, and we’re excited for what’s in front of this company.”

ConnexPay will use the investment to further build its business with online marketplaces and other commerce intermediaries and to expand into Europe, including development to support multiple currencies and languages.

“ConnexPay was founded to transform the entire payments experience for the travel industry. We quickly discovered that the value of the connected ecosystem – which offers controls that resulted in reduced risk, improved cash flow, lowered the cost of accepting cards and allowed for easier reconciliation – had much broader application across many vertical markets,” says Robert Kaufman, founder and CEO of ConnexPay.

“We’ve worked with Marqeta as a customer since 2018 and we know the value and payments expertise they bring to the table, so we’re excited about this new investment and what we can accomplish with them in our corner.”

Marqeta also made an investment in the company as part of its Series A in 2019. As part of this investment, Marqeta will have one seat on ConnexPay’s board.

ConnexPay’s total funding raised to date is $35 million.