Dive Brief:

• San Francisco-based payment processor Finix has raised $75 million that it will use to better compete with payments giants like Stripe, CEO Richie Serna said in an interview Monday. The startup raised the money from venture capital firms such as Acrew Capital, Leap Global, Lightspeed Venture Partners, Citi Ventures and Tribeca Venture Partners, the company said in a Thursday news release said.
• Finix plans to use the money from the latest funding round to expand its suite of products and move into markets beyond the United States and Canada, where it currently operates, Serna said.
• The payment processor provides a range of services, including point-of-sale systems, and online and in-person payment processing, Serna said. “Everything is centralized for our customers” and Finix can handle cross-border payments between the United States and Canada, Serna said. “There’s only about three companies that do all of this. Stripe does it, and now Finix does it.”

Dive Insight:

Finix, which was founded in 2016, has now raised a total of $208 million and also counts companies like Adyen and Square among its competition, Finix spokeswoman Tyson Frucci said in an email.

The global payments market handled about $3.4 trillion worth of transactions in 2023, according to an assessment from the consulting firm McKinsey. Finix is eyeing a much larger share of that pie, the company’s CEO said.

Frucci declined to say who the company’s customers are and how many businesses Finix works with, and did not respond to questions about the size of the company’s market share and the total payment volume it handles annually.

Finix’s customers include brick and mortar retailers and e-commerce websites, Serna said.

The payment processor works with a wide range of customers, he said. “In terms of industries, they run the full gamut. It could be a restaurant, or it could be an antique store or a dog kennel,” Serna said.

The processor expanded into Canada in the past two years, and Serna said Finix can expand into other international markets with its recent financing.

The idea that Stripe is an all-powerful payments player is a false narrative, Serna said, and he seeks to dispel that notion.

Stripe, which has dual headquarters in Dublin and San Francisco, handled more than $1 trillion in total payment volume last year, the company said in a letter addressed to “the Stripe community” in March.

McKinsey expects the global payments market to expand 5% per year over the next five years.

Serna said that leaves plenty of room for players like Finix to find new business