Allied Irish Bank has invested EUR30 million in local B2B payments platform TransferMate, valuing the company at up to Eur300 million.
AIB's investment in TransferMate, which is owned by Terry Clune and Sinéad Fitzmaurice of the TaxBack Group, comes just months after the EU payment institution achieved full regulatory approval to operate across the United States.
AIB's investment gives the bank a small minority stake in the firm and a platform to support clients who want to avoid hefty bank transfer fees for cross-border payments.
TransferMate chief executive Clune told the Irish Independent newspaper that the deal, which is subject to Central Bank approval, was "a great example of how a leading bank and a fintech company can work together".
AIB managing director of wholesale, institutional and corporate banking Colin Hunt added: "The investment is in line with AIB's strategic priority to increase the pace of innovation to serve changing customer needs by working with both dedicated internal teams and with external partners and startups."