Traxpay Announces Major Funding and Partnerships
Traxpay, a B2B payments company based out of Frankfurt, Germany has announced serious funding and partnerships with some of the world’s leading financial institutions.
Specializing in what they call “Dynamic Payments,” Traxpay enables large-scale businesses to send and receive invoices, set and change conditions for payments, along with deeper capabilities that traditional banks and B2B payment providers can’t match.
Traxpay has attracted major investment in its series B funding to the tune of $15 million, led by Germany’s Commerzbank and Software AG. Joining Traxpay’s Board of Directors will be Commerzbank’s EVP and Head of Corporate Banking, Holger Werner, and Software AG’s SVP of M&A and Corporate Ventures, Frederic Hanika.
The company is also partnering with MasterCard to scale up and introduce the Dynamic Payments platform globally.
Speaking with Traxpay CEO, John Bruggeman about the investment, he said “[series] A rounds are easy to do, but B rounds are difficult especially for a B2B or enterprise play, since getting to scale takes so much longer than a consumer-focused product. The fact that Traxpay is able to get over that threshold I think says a lot for the problem that we solve and the way in which we solve it.”
Regarding the funding and interest from Commerzbank, Bruggeman stated, “Banks who own 90 percent of invoice payments see this change coming, they see the emergence and requirement of dynamic payment and the banks are not structurally set up to do that today. So they’re trying to find how to participate in the emerging dynamic payment market. That’s why you see the lead investor in our funding round is a bank.”
Lastly, Traxpay’s partnership with MasterCard is a win-win for both companies since “MasterCard serves 150 plus countries, they have arguably one of the biggest payment rails systems in the world, and that enables us to scale our business very rapidly. It allows MasterCard to have an entrance into the B2B supply chain payment market, and it gives us the ability to globally scale our business.”