Fintecture wants to replace paper checks or manual transfers for B2B payments • TechCrunch

Meet Fintecture, a French startup that wants to evolve B2B payments. While many payment companies have focused on B2C payments with Stripe in the lead, B2B payments haven’t changed much over the years.

“In the United States, there are still a lot of paper checks. In Europe, it’s mostly manual transfers and reconciliations,” Fintecture co-founder and CEO Faysal Oudmine told me.

But this underinvestment in the B2B market is strange because these transactions represent a much larger volume than B2C transactions. This is because the average B2B transaction is much larger – we’re talking tens of thousands or sometimes hundreds of thousands of dollars.

In order to provide a product that performs better, Fintecture approaches the market in different ways. There is no single solution that will work for all businesses.

With its first means of payment, Fintecture relies on open banking. The company has signed partnerships with large corporate clients, such as Edenred or Bricoman, so that these companies’ own clients pay them via Fintecture.

When they click on a Fintecture link (or scan a QR code in store), they can then connect to their bank account and validate the transaction there. The first transaction requires a bit of integration, but it’s already easier with the second transaction.

200,000 businesses have interacted with Fintecture at some point to pay for products or services. They either initiate an instant payment or a normal transfer with instant confirmation. Fintecture guarantees that the money will eventually arrive in the big company’s bank account.

Fintecture has created a second method for customers to pay from their banking interface. Essentially, the startup generates virtual IBANs so it can automatically reconcile incoming payments.

“The payer receives a tracking link that works like a DHL link so they know what the status of their money is in the payment stream,” Oudmine said.

Fintecture’s third product is a way to allow your customers to pay in instalments. Fintecture takes care of the fraud and payment processing so you don’t have to rely on a BNPL provider. Instead, businesses can release a line of credit directly from their banker knowing that the money will eventually arrive. It is usually much cheaper than borrowing money from a BNPL company.

Finally, Fintecture can also handle refunds. “Here we have a solution that automates part of the refunds with built-in KYC and AML features as well as instant payments,” Oudmine said. Fintecture asks companies to connect to their bank accounts to directly verify their identity.

A total of 7,000 businesses collect payments using Fintecture. Around a thousand of them use the product directly while the rest rely on integrations into Pennylane, Libeo, Regate and other fintech products.

Fintecture raised $26 million (€26 million) in Series A funding this year. Investors include Target Global, Eurazeo, RTP Global, Samaipata, Allianz Trade, Société Générale and various business angels. There are currently 80 people working for the startup – and the company plans to hire another 40 employees.

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