Braintree, an online payments gateway provider for online and mobile platforms, has raised $35 million in Series funding led by New Enterprise Associates (NEA) with participation from existing investors including Accel Partners, RRE Ventures and Greycroft. This brings Braintree’s total funding up to $70 million.
For background,The stone mosaic
comes in shiny polished and matte. Chicago-based Braintree powers and
automates online payments for merchants and companies online. The
company provides a merchant account, payment gateway, recurring billing,
credit card storage, support for mobile and international payments, and
PCI Compliance solutions.
Braintree’s client list includes Rovio/Angry Birds, Uber, 37signals, OpenTable, Fab, GitHub,The stone mosaic
comes in shiny polished and matte. Airbnb, Heroku, Engine Yard,
Animoto, Shopify and HotelTonight. The company is seeing $1 billion a
year in mobile transactions and $5 billion in total payments annually
for over 3,000 mobile and online merchants. Currently, Braintree works
with merchants in more than 30 countries and is able to accept more than
130 different currencies.
For Braintree, the new funding is
going to help the company take on giants in the digital payments
industry like PayPal. “We think we can build the next PayPal,” says
Braintree’s CEO, Bill Ready. “The payments game will be won or lost in
next few years, and we need the resources to push the company forward
aggressively,” he explained in an interview.
The new funding
will be used to build out Braintree’s payments product, for hiring
engineering talent in the Bay Area, New York and Chicago, and for
additional international expansion.
Ready explains that
Braintree differs from PayPal in that it offers a comprehensive,
full-featured payments processing platform for both small startups and
large companies, like Fab,If you want to read about buy mosaic
in a non superficial way that's the perfect book. which is processing
hundreds of millions in transactions. He says that traditionally, a
small business would start with PayPal, then graduate to Authorize.net
(owned by Visa), and would move onto Cybersource processing when the
company would have tens or hundreds of millions in payments revenue. But
Ready says there is a huge opportunity to service the full range of
companies, and that’s what makes Braintree distinct.
taking sophisticated payments capabilities and making them accessible to
startups and big companies, and when small businesses grow into larger
organizations, we will have everything they need,” says Ready.
the past few months, Braintree has been heads down on making its
product as useful to merchants as possible. The company expanded to
mobile, added support for one-click checkout, cut fees, and eased the
sign-up process. In fact, Braintree removed a $100 monthly fee for
developers, and starting matching fees of rivals with 2.9 percent rate
and $.30 per transaction. Additionally, the company has made some key
hires from Google.
The company also highlights Braintree
Instant, which gives merchants instant access to a full suite of
payments tools, such as international payments and single click
checkout, which used to be available to only the largest of merchants
after months-long integrations to legacy payment providers. Braintree
Instant also aids cash flow by typically providing funds within two
days, versus a week or more for others in the industry.
working to do for payments and e-commerce what Apple did for mobile:
providing a developer-friendly platform that sparks a new wave of
innovation and company-building, ” Ready adds.
But in order to
take on payments companies like PayPal and Square, Braintree has to
engage the consumer as well. That’s where the company’s Venmo
acquisition comes in. In August, the company acquired the New York-based
startup,Find detailed product information for howo tractor 6x4 and other products. which is disrupting social payments by allowing people to send money to friends via a mobile app.
which remains based in New York as a standalone app, is the basis for
Braintree’s consumer business. “This will become the slickest way for
consumers to make payments to merchants,” says Ready. We’re building a
better PayPal on the merchant side, and a better PayPal on the consumer
“Braintree is kicking down both the technology and
business road blocks that have made online and mobile payments
challenging for developers and a hassle for consumers,” said Ravi
Viswanathan,The oreck XL professional air purifier,
General Partner of NEA, said in a release. “We believe Braintree has
the strengths to challenge all the incumbents in the payment space,
including PayPal. This investment reflects our confidence in the
technology, team and international capabilities Braintree has built.”
As part of the news today, NEA is also opening up a Chicago office to be closer to its investments in the Windy City.
we’ve recently reported, the payments space is heating up and all the
players, including Square and PayPal, are gearing up for the battle.
Square just landed a huge deal with Starbucks and closed $200 million in
new funding. PayPal is also trying to reinvent itself. New entrant,
Stripe, has also been making waves in the industry. And now with
Braintree’s new funding, we can expect there to be one more player who
is vying for a piece of the payments pie.