Based in Buenos Aires, the payments infrastructure start-up Geopagos has recently raised a funding of $35 million in a round that was led by the capital market company Riverwood Capital. This fresh funding marks the first-ever institutional funding of the company. The start-up company founded in 2013, is currently serving as a white label infrastructure software provider with an aim of providing businesses the potential to set in financial services.
With a presence in 15 countries of Latin America, Geopagos says that with a processing volume of $5 billion annually, the organization manages more than 150 million transactions. Geopagos promises to help businesses looking to launch and/or grow a payment acceptance business with “unmatched time to market” and the opportunity to integrate all functions under a white label modality, from accepting all payment methods to visualizing all transactions regardless of the payment method that was used to collect. According to the company, it is the right time for them to be able to serve as a software enabler to other businesses that can retrofit incumbents and help potential enablers like fintech to launch.
With a presence in 15 countries of Latin America, Geopagos says that with a processing volume of $5 billion annually.
The customers include fintechs, large financial institutions, software companies, and retailers among others. Alongside, the customers also include BBVA, Santander, Niubiz, BAC Credomatic, Itau, Fiserv, and Chile’s Banco Estado. Geopagos as a fintech infrastructure provider helps its customers obtain and facilitate card payments to other clients. The fee that the company charges are a software-as-a-service, which it says ‘allows for full alignment’. Sebastián Nez Castro, the CEO and co-founder of Geopagos, declared, “If they win, we win.”
The company offers a set of its own Open APIs to enable its clients to create and manage their user experience according to their own preferences, in addition to the white label offering that it provides. Including tap-to phone which is grabbing a massive interest in the region according to Núñez Castro, the company also has several software offerings. There is no denying that the card market in Latin America is sizable and underdeveloped; it is estimated to be at 28% compared to 63% in the United States. For vendors of payment infrastructure like Geopagos, this bodes well.
The company offers a set of its own Open APIs to enable its clients to create and manage their user experience.
The use of digital payment solutions has accelerated globally after the pandemic but Latin America is still behind in the race for the usage of digital payment. Additionally, he continued, the idea of a market with several acquirers allowed for the prospect of new actors to appear in the financial ecosystem, increasing competition and ultimately leading to better, more creative solutions.
The emergence of Geopagos’ concept took place in 2012 when one of the company’s founders went into an apple store where he noticed that with the help of a small device, he could pay for his items through his card. He explained the incident to some of his colleagues and as they were also fascinated by the idea, they became co-founders of the company. The next year, Geopagos became operational to make digital transactions easier and more accessible for people in Latin America.