HomeFundingSwedish fintech Open Payments closes €3 million to fuel growth plans

Swedish fintech Open Payments closes €3 million to fuel growth plans

Open banking platform, Open Payments, has just secured €3 million for its solution focused on the B2B market. The Swedish startup now plans to scale. 

Open banking is a growing force within the financial sphere, offering users more control and flexibility over their data and financial choices.

Taking the concept to the B2B space, Swedish startup Open Payments was founded in 2017, aiming to make open banking a reality. The startup, founded by Louise Brandt, has now secured €3 million in a new growth round.

The investment was led by Industrifonden with participation from Sony Financial Ventures, Global Brain’s venture capital fund, as well as existing investors.

Open Payment’s unique platform enables online banking functionality to be shifted from the online bank to the customers’ business systems and interfaces. This means the end user can approve and make secure, direct payments without having to log in to their online bank.

Louise Brandt, CEO and founder of Open Payments: “We see an increasing demand from leading accounting and ERP systems and other financial systems that want to utilize Open Banking in their products in a secure and reliable way. Above all, they want to be able to provide various payments for their business customers, such as supplier payments and salary payouts. Open Payments has a cutting-edge expertise in this area and there are vast business opportunities for both us and our customers. We see that b2b payments are part of the Open Banking space where we have a first mover advantage and can take the lead internationally.”

The platform connects to commercial banks via API tech to allow services such as payments, account reconciliation and cash management to be embedded directly in client applications like ERP systems, payment providers and fintechs.

The Swedish company is developed based on the European directive PSD2 – a regulatory framework that is obligating banks to make account information and payment initiation services available to third parties. The aim is that by doing so, the market is opened up to players other than banks, bringing about new financial solutions. Open Payments wants to become the hub of this growing innovation ecosystem.

Anna Ljungdahl, Senior Investment Director at Industrifonden: “There are great opportunities with Open Banking since companies don’t need to be banks to provide secure banking functionality within their own systems. What they do need though is a player like Open Payments whose technology lowers the entry barriers to these opportunities. We’re happy to keep supporting the team and also welcoming global investors to Open Payment’s list of owners.”

Currently, the fintech team count customers such as accounting and ERP systems providers and tech companies. Now, the plan is to expand into new markets, picking up new customers and new collaborations along the way. Open Pyaments have also shared a commitment to scale the product and develop the platform further during this year.

Naoki Kamimaeda, partner at Global Brain: “The Open Banking for the b2b market has been neglected and the digitization that has taken place has instead been targeting consumers. We are impressed by how far Open Payments has come in building and establishing the infrastructure required to make Open Banking a reality for businesses.”

Junji Nakamura, Director of Sony Financial Ventures: “In Japan, Open Banking is in the early stages and we are inspired by how far Open Banking has come in Europe and the Nordics. We are impressed by Open Payment’s technology and how the company has enabled Open Banking for businesses. We made a strategic decision to invest in Open Payments to allow more markets to embrace the benefits of Open Banking faster.”

Patricia Allen
Patricia Allen
is the Head of Content at EU-Startups. With a background in politics, Patricia has a real passion for how shared ideas across communities and cultures can bring new initiatives and innovations for the future. She spends her time bringing you the latest news and updates of startups across Europe, and curating our social media.

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