The basis of any business is its profitability, and the more ways a company can make money, the better. A Santa Monica-based startup is providing companies with a solution to help them further monetize the revenue they already make. PayEngine just secured a $10 million Series A funding round to expand the reach of its B2B payments solution.
PayEngine works to help software companies in specific verticals maximize their revenue by enabling in-house payment processing functions. Led by Point72 Ventures, the company’s latest capital raise will facilitate the development of new financial product offerings, furthering clientele access, bolstering its international support and growing its team.
PayEngine’s platform is meant to be an alternative to third-party payment solutions for companies across the U.S. It helps vertical market businesses retain their revenue on their own while removing the need for complex factors like merchant-of-record liability and software implementation. The platform also allows businesses to stamp their own branding on PayEngine’s software and implement it alongside their core software offering.
Spartak Buniatyan, PayEngine’s founder and CEO, provided Built In with an example of a SaaS platform built specifically for businesses in the yoga vertical. This fictional business, called YogaOS, provides yoga studios with the software they need to manage their operations and charge their customers. Rather than using a third-party payments company to process its earnings, YogaOS could use PayEngine’s solution to do so, adding a new stream of revenue to its business model.
“Vertical SaaS companies have a special understanding of the industry they serve, and subsequently unlock greater payment volumes for their customers,” Buniatyan told Built In via email. “By using PayEngine, they can better support their customers, create better user experiences and ultimately take advantage of a new revenue stream, increasing ARR by an average of 30 percent.”
PayEngine currently serves customers across a range of industries including home services, automotive, construction, healthcare and transportation. In addition to monetizing their existing revenue, PayEngine works to help them reduce the merchant-of-record liabilities and data security and compliance issues that typically come with implementing payment facilitation tools. It also supports vendor payout to allow for easy outbound payments management, Buniatyan said.
As part of its ongoing growth, the company recently launched its solution in Canada and is working to expand into Mexico and the European Union by the end of this year.
