Argentine fintech startup Geopagos leaves loading belts behind with $35M funding round

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geopagosa payment infrastructure The Buenos Aires-based startup has raised $35 million in a round led by Riverwood Capital.

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The funding marks the company’s first institutional funding. An Argentine startup founded in 2013 serves a white-label infrastructure software provider to enable businesses to launch financial services.

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Today, Geopagos is present in 15 Latin American countries and claims to handle over 150 million transactions with a processing volume of $5 billion per year.

It promises to help companies that want to build and/or scale a payment acceptance business, “unrivaled time to market” and the ability to integrate all features in accordance with the white label modality – from accepting all payment methods to visualizing all transactions, regardless of the payment method. The that was used to collect.

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In a nutshell, Geopagos believes it is in an ideal position to act as a software provider that can modernize incumbent operators such as large banks and launch tools such as fintech.

Right, clients include, among others, large financial institutions, fintech companies, retailers, and software companies. Some of these clients Santander, BBVA, Itaú Fiserv, BAC Credomatic, Niubiz and the Chilean Banco Estado.

Simply put, as a fintech infrastructure provider, Geopagos helps its customers acquire and facilitate card payments for thousands of its customers. It charges software-as-a-service fees based on usage, which the company says “enables full alignment.”

“If they win, we win,” said Sebastian Nunez Castro, CEO and co-founder of Geopagos.

In addition to its white label offering, Geopagos also offers its own set of open APIs so that customers can create and manage their own user interface if they prefer. The company also has several software offerings, including Tap to Phone, which Nunez Castro said:is of great interest at the regional level.

There is no doubt that Latin America is a large under-penetration card market – it is estimated at 28% compared to 63% in the US. This opens up great opportunities for payment infrastructure providers such as Geopagos.

The pandemic has accelerated the use of digital payment solutions around the world, but especially in Latin America. Nunez Castro. In addition, the overall concept of having a market with more than one buyer has opened up the possibility for new entrants into the financial ecosystem, creating more competition and ultimately better, more innovative solutions, he added.

“In this environment, merchants can now greatly expand their ability to accept payments as system costs are lowered and they have access to new and better products, resulting in greater financial inclusion,” he told TechCrunch. “In Latin America, all markets are moving towards a more open acquisition model, but each individual country is at a different level of adoption. We continue to see progress in this area thanks to those who use the open acquiring model, creating a better and more accessible environment for both merchants and buyers.”

The Geopagos concept was actually born in 2012. on Fifth Avenue in Manhattan, when one of its founders walked into an Apple Store and found he could pay with his card through a small device.

He returned to Argentina and explained the idea several of his colleagues who were also fascinated and became his co-founders. The following year, Geopagos was born with the goal of making payments easier and more accessible in Latin America. Nunez Castro.

Loaded until today he says that Geopagos is a profitable business that increased revenue by approximately 75% CAGR, or compound annual growth rate, over the past three years.

Before helping the co-founder of Geopagos, Nunez Castro spent over 14 years as Vice President and General Manager of Amex’s GNS division in Latin America, where he led the card business in Latin America, including expanding into new markets.

Endeavor Catalyst also contributed to the funding. The company plans to use the new funding to further buildtechnological infrastructure and expand to other countries in the region, such as Brazil, where it was recently launched. By 2024, the company aims to triple the number of trade transactions it helps to facilitate.

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Geopagos has about 350 employees, mostly in IT/technical positions. Nunez Castro, and over 100 people have been hired in the last year alone.

Francisco Alvarez-Demalde, co-founder and managing partner of Riverwood Capital, noted that his firm has been focusing for years on developing relationships and investing in fintech infrastructure companies that are behind the ongoing technology adoption trends it sees in fintech around the world. . .

“In particular, Latin America has historically been significantly less developed in terms of the introduction of payment cards. This is a pervasive problem that is partly being addressed by the emergence of neobanks on the card issuing/banking side – with record amounts of funding over the past couple of years – but it also requires significant innovation on the card accepting side. he wrote by email.

Geopagos, according to Riverwood, supports such innovation – in turn, helping its clients “promote the inclusion of digital technologies in payments throughout the region.”

“As global growth investors and active technology investors in Latin America, over the past 14+ years, we have been pursuing and evaluating dozens of opportunities in this area,” Alvarez-Demalde added. “This ‘Purchase as a Service’ or ‘Integrated Acquiring’ investment theme is a rapidly evolving breakthrough area, and Geopagos’ team, platform, business model and regional scale were unique compared to smaller competitors.”

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