ConnexPay, a payment provider changing the way travel intermediaries do business, announced today that it has raised a Series A funding round of $7 million led by BIP Capital, one of the Southeast's most active venture investors.
ConnexPay works by seamlessly matching payments from travel buyers to travel suppliers in real-time. The technology reduces risk, eliminating the need for online travel agencies, tour operators, and consolidators to pre-fund payments or obtain lines of credit.
ConnexPay was named Most Innovative Startup in the travel industry at the Phocuswright conference in late 2018. The award exemplifies the value ConnexPay brings to travel companies. ConnexPay's patent-pending technology is easily utilized by connecting to the company's flexible APIs or accessing a PCI-certified portal. ConnexPay is leveraging Marqeta's issuing technology as it scales throughout North America and eyes continued market expansion.
ConnexPay further announced that it is expanding the issuance of Visa® virtual cards in the travel industry. By collaborating with Visa's issuing and acquiring financial institution partners, ConnexPay enables its customers to seamlessly use Visa single-use virtual credit cards to enable payments to travel suppliers.
"Collaborating with Visa to help expand issuance of Visa virtual cards provides a substantial boost to ConnexPay," said Bob Kaufman, founder and CEO of ConnexPay. "Our intention is to be a game-changer for travel intermediaries and our successful funding round launches us one step closer to making this mission a reality."
"Visa is at the forefront of innovation in payments globally. Our collaboration with ConnexPay reflects a strong desire to strengthen Visa's position in the business-to-business travel vertical, and to do so alongside partners such as ConnexPay," said Taira Hall, vice president, Visa Business Solutions.
Travel and tourism is one of the world's largest economic sectors, supporting one in 10 jobs (319 million) worldwide and generating 10.4% (US $8.8 trillion) of world GDP, according to the World Travel & Tourism Council (WTTC). In the United States, the travel and tourism industry generated $1.62 trillion in 2018.
While ConnexPay is initially focused on the travel vertical, its technology also has applications for non-travel e-commerce intermediaries, such as marketplaces, event ticket brokerage, bill payment, and others. The growth capital provided by the Series A funding will be used by ConnexPay to further technology development, increase personnel, and expand into new markets.
"ConnexPay is transforming online payment acceptance and issuance for the travel industry," said Mark Buffington, co-founder and CEO of BIP Capital. "ConnexPay reduces risk, lowers the cost of accepting cards, and enables unlimited credit and easier reconciliation. We're pleased to work with the ConnexPay team to continue to accelerate the company's growth."