Finix Quadruples Transaction Volume As Digital Payments Soar
SAN FRANCISCO, Aug. 11, 2020 /PRNewswire/ -- As demand for digital payments surges, Finix, which provides payments infrastructure to vertically-focused software companies, reported a 4.5x increase in payments volume from Q2 2019 to Q2 2020. Finix also recently launched Flex, a new product that kick-starts more companies on the path to owning their payments.
"Finix allows software companies to unlock new revenue streams, grow market share, and improve their product experience all at the same. With COVID catalyzing the adoption of digital payments, that promise is more compelling than ever," said Richie Serna, Finix CEO and co-founder. "Over the past few months, we've seen our customers shift payment strategies on a dime to seize emerging opportunities and keep up with new demands brought on by the acceleration in digital payments and eCommerce."
In May, J.P. Morgan reported that integrated payments—those distributed via software—"should continue to grow at 2x the market for years to come and is just ~10% penetrated in the U.S," up from 8% six months prior.1 By enabling companies to own their payments, Finix helps its customers customize and expand their digital payments capabilities at record speeds. For example, Kabbage, a small businesses cash flow provider, used Finix to launch a digital gift card solution for small businesses in a matter of days. Passport, the mobility management platform, has spent the pandemic helping cities like Austin, TX and Atlanta, GA migrate to mobile payment solutions built on Finix's payment facilitation platform as they embraced contactless parking.
"Our goal was to marry our back office system with payments to provide a seamless, all-in-one product for our customers. Finix made this easy and we are now able to be more efficient and flexible," said Greg Hammermaster, head of payments at Passport. "Our ability to adapt has been critical in working with city leaders to modernize their operations and improve customers' experiences."
To help even more software platforms own and monetize their payments, Finix recently launched Flex. The beta product allows software platforms and independent software vendors (ISVs) to begin earning payments revenue today while reducing the costs of becoming a payment facilitator later. By using Flex, clients can build and scale on the same Finix platform and API they'll use as a payment facilitator, removing traditional switching costs and technical challenges. Several companies are already using Flex to future-proof their payments strategy.
"COVID-19 has made our mission of helping software companies become payments companies even more important as the world's digital payments transformation accelerates. Every week, I speak with business leaders in every industry who are recognizing the need to adapt their core payments strategies to ensure long-term success," said Serna.
Finix's growth comes amidst recent private and public market activity, which underscores the explosive growth of the payments industry. In the last few months, Stripe reached a $36 billion valuation citing a surge in businesses accepting digital payments for the very first time, and Checkout.com claimed a $5.5 billion valuation with a 250% increase of yearly transaction volume from May '19 to '20. Square has seen its market cap double since May, and PayPal just reported its strongest quarterly performance ever. More and more companies are combining payments and software, and Finix's growth and new product offering position it perfectly to play a major role in the digital payments revolution that's only just begun.
1 J.P. Morgan Payment Processing: Payments Market Share Handbook Eleventh Edition
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