Fintech & Ecommerce

Aeropay Raises $20 Million

Aeropay, which specializes in the implementation of activities in the digital payments area, announced that it has managed to raise new financing for $20 million.

Aeropay Raises $20 Million

The relevant information is contained in the press release of the mentioned firm, which was published last Thursday, May 16. The company announced its intention to use the received funding to carry out new product development activities. The firm also intends to spend part of the raised investment funds on strengthening the possibilities of implementing strategic partnerships and exploring new prospects.

Aeropay, based in Illinois, started its activities in the sphere of cannabis and the gaming industry. The company connects bank accounts using Aerosync, a banking aggregator that is also mentioned in the press release. The mentioned platform provides the ability to customize integration by applying the full suite of open API data. The company claims that in this case, consumers are offered the highest approval ratings in the industry. Moreover, the firm notes that within the framework of appropriate solutions, the risk of return is minimized and reliable protection against fraud is provided.

Daniel Muller, founder and CEO of Aeropay, stated in a press release that in most verticals, the process of making payment transactions is carried out within the framework of archaic mechanisms provided by outdated functional systems, which also contain significant risks and imply excessive fees. He stated that his company has built a payment network driven by banks. According to Daniel Muller, in this case, businesses are protected from fraud.

Also, as he stated, the advantages of the payment network built by Aeropay are saving customers money and providing them with a new easy way to make transactions. Daniel Muller described the mentioned development of his company as a new-generation payment network.

Statistical data indicate that in the US financial services sector, the level of consumer demand for payment transactions from account to account increases as they become familiar with the relevant functional offer. Also in the United States, surveys have found that 84% of users of pay-by-bank products are very or extremely satisfied with the platform for providing appropriate solutions with which they most often interact.

The specified consumer experience is largely a result of the fact that the mentioned platforms have not only simplified the payment process but also made it part of an ecosystem where customers interact and make transactions regularly. Most financial operations are usually performed by users within the same functional network, sending money to the same recipients. Against the background of appropriate consumer practices, the level of comfort increases, and trust is strengthened. Moreover, in this case, significant customer loyalty to the platform is recorded.

Besides, a low level of user awareness may become an obstacle in the implementation of the process of wider implementation of the pay-by-bank system. Currently, 36% of financial service consumers in the United States use such systems. About the same number of potential customers say that they are deterred from interacting with functional products of the pay-by-bank category by a lack of understanding of the relevant transaction mechanisms. It is worth noting that professionals working in the banking services sector have already paid attention to this circumstance. Ed Dean, vice president of products at Nuvei, said last year during a conversation with media representatives that the lack of familiarity hinders the wider use of pay-by-bank systems. According to him, the corresponding state of affairs is because new options are based on old payment platforms.

As we have reported earlier, Monzo Raises $190 Million.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.