CSI Kick Start, a FinTech startup incubator founded by leading global payments innovator CSI Enterprises, Inc., announced today its investment in ConnexPay LLC, a financial technology and global payments start-up which has designed a payments solution geared towards reducing risk and the cost of card acceptance within specific industry verticals such as travel and e-commerce.
ConnexPay has created a consolidated merchant acquiring and virtual card issuing solution by leveraging the globalVCard virtual card issuing technology.
ConnexPay creates a bridge between intermediary entities which accept a significant volume of customer credit card payments while facilitating outgoing B2B payments to their suppliers for customer order fulfillment. This transaction flow is a common theme in e-commerce and with travel agencies in particular. Merchants acting as an intermediary often leads to higher cost of card acceptance and increased risk for credit card processors and their sponsor banks.
By accepting the merchants’ customer payments and in real-time issuing a virtual credit card via the globalVCard system for making payments to the merchants’ suppliers, ConnexPay has created a completely integrated solution which offsets merchant acquiring fees with a card issuing rebate, while also providing complete transaction reconciliation capabilities. Through this integration, ConnexPay offers merchants lower fees for accepting cards, and significantly reduces bank sponsorship reserve requirements.
“Our business model is something that hasn’t been seen before in the travel reservation industry,” said Robert (Bob) Kaufman, Founder and CEO, ConnexPay. “We are thrilled about the investment that CSI Kick Start is making in our business and the organization’s faith in our ability to reduce risk and drive payment acceptance costs down in industries that are more traditionally viewed as higher-risk business verticals.”
Prior to founding ConnexPay, Bob had a distinguished 20-year career at U.S. Bank, and most recently was the General Manager of the Virtual Pay division of U.S. Bank overseeing product, marketing, and supplier enablement for all virtual payment solutions, as well as a virtual-pay-focused sales team.
The CSI Kick Start model is unique in the world of venture capital funding. The company not only looks for innovative new solutions but also provides access to resources and expertise in all areas of business development including technology and overall guidance from a network of successful entrepreneurs and advisors.
“We are extremely supportive of the integrated and streamlined business model that ConnexPay offers,” said Keith Stone, CEO, CSI Kick Start. “The success of this venture will be possible not only because of the passion, dedication, and willingness of Bob and his team to learn and solve critical industry challenges that were previously unaddressed, but also due to CSI Kick Start’s support. This business fits extremely well within CSI’s product and corporate culture and we are thrilled to welcome the new partnership with Bob and ConnexPay.”