Five major U.S. commercial banks invested a total of $30 million in Transactis, the New York provider of electronic billing and payment solutions. Capital One, Fifth Third, PNC, TD, and Wells Fargo put equal amounts into this Series E round. Including this funding, Transactis has now raised $70 million. Transactis says its software as a solution enables businesses of all sizes “to replace paper bills, statements, invoices, payments and documents with efficient and cost effective digital alternatives.” Other Transactis investors include ff Venture Capital, MacAndrews & Forbes, Metamorphic Ventures, Safeguard Scientifics and StarVest Partners. K&L Gates LLP advised the five banks on the Series E investment agreements.
Capital One, Fifth Third, PNC, TD, and Wells Fargo Invest in Transactis
Top electronic billing and payment company receives investment from five of the largest U.S. commercial banks
NEW YORK, April 17, 2016 /PRNewswire/ — Five of the largest U.S. commercial banks — Capital One, Fifth Third, PNC, TD, and Wells Fargo — and Safeguard Scientifics announced they have invested a total of $30 million in Transactis, a leading provider of electronic billing and payment solutions. Each bank, along with Safeguard, invested an equal amount in Transactis as part of a Series E financing, demonstrating the banks’ continued leadership in payments innovation. Transactis’ technology reaches more than 100 million households and businesses in North America.
“Businesses of all sizes rely on their banks to provide secure, innovative billing and payment services,” said Joe Proto, chairman and CEO of Transactis. “We are so proud to serve the most progressive banks in the payments industry and even more proud that Capital One, Fifth Third, PNC, TD, and Wells Fargo are more than our customers, they’re also now our investors.” Inclusive of this funding, Transactis has raised $70 million.
There are more than 25 billion bills produced annually by more than 4 million companies in the U.S. alone, and only about a quarter of these bills are electronic, according to a 2015 Blueflame Consulting study. There is a big need for an electronic billing and payment system that banks are uniquely positioned to fill. Transactis provides a configurable, white-label, SaaS solution that transforms traditional paper billing and payment processing by enabling businesses of all sizes to replace paper bills, statements, invoices, payments and documents with efficient and cost effective digital alternatives.
“As a leading treasury management bank, Wells Fargo is committed to offering our clients the best solutions in payment processing,” said Danny Peltz, head of Treasury Management at Wells Fargo. “Our investment in Transactis is another example of our dedication to provide our customers with innovative payment services.”
“As one of the largest, diversified financial services institutions in the United States, PNC was Transactis’ first bank client,” said James G. Graham, executive vice president for Treasury Management at PNC. “We helped Transactis develop into a high-quality electronic billing and payment company serving PNC’s B2C and B2B customers, and now we see an opportunity to influence the future of electronic bill presentment.”
“The payments industry is rapidly changing and Capital One is committed to being on the forefront of that transformation,” said Colleen Taylor, executive vice president at Capital One. “That is why Capital One invested in Transactis. We are passionately focused on providing leading technology solutions for our customers that make their business lives easier.”
“Business back offices are still paper-heavy, and TD is committed to helping more than half a million businesses we serve become more time and resource efficient,” said Rick Burke, head of Corporate Products and Services at TD. “We believe that our investment in Transactis will help meet our customers’ demand for leading electronic payment solutions across North America.”
“Fifth Third is committed to providing secure, convenient commerce solutions that enable our business customers to improve operations and exceed their financial goals,” said Randy Koporc, head of Payments and Commerce Solutions at Fifth Third. “We believe that our investment in Transactis will further enhance our ability to help business customers replace paper bills, statements, invoices, and payments with a digital solution.”
“There is a major transformation taking place in billing and payments, and Transactis is paving the way,” said Stephen T. Zarrilli, president and CEO of Safeguard and board member at Transactis. “Transactis has a robust history of partnering with some of the largest and most respected institutions across a broad range of industries. We’re proud of what Joe and his team have achieved since we first deployed capital into the company in August 2014, as part of the company’s $11 million Series D financing, and look forward to supporting the company as it extends its leadership position in the billing and payments industry.”
K&L Gates, LLP served as counsel to the banks for the investment agreements.