Silverflow, a Dutch startup established by Adyen alumni, is breaking cover and announcing seed financing. The pre-launch business has actually spent the last 2 years building what it refers to as a”cloud-native” online card processor that
straight links to card networks. The aim is to provide a contemporary replacement for the 20 to 40-year-old payments card processing tech that is primarily in use today. Support Silverflow’s EUR2.6 million seed round is U.K.-based VC Crane Endeavor Partners, with involvement from Inkef Capital and unnamed angel financiers and market leaders from Pay.On, First Data, Booking.com and Adyen. It brings the fintech start-up’s total financing to date to ~ EUR3 million. Bootstrapped while in development and releasing in 2021, Silverflow’s founders are CEO Anne-Willem de Vries(who was concentrated on card obtaining and processing at Adyen ), CBDO Robert
Kraal(former Adyen COO and EVP worldwide card acquiring & processing of Adyen )and CTO Paul Purchasing (founder of gotten translation start-up Livewords). “The payments tech stack requires an upgrade,”Kraal tells me.”Today &’s card payment infrastructure based upon 30 to 40-year-old innovation is still in usage throughout the global payment landscape. This legacy infrastructure is costing everybody time and money: customers, payment-service-providers, banks and merchants. The legacy platforms require a lengthy on-boarding procedure and are costly to maintain, [and] they also aren’t suitable for function today because they don’t support data use”. In addition, Kraal says that adding brand-new functionality is a pricey and lengthy procedure, requiring the effort of specialised engineers which eventually decreases development “for the whole card payments system”.
“Finally, every acquirer supplies its client with a different processing platform, which for a common payment service provider(PSP)means they need to handle numerous tradition platforms– and all the expenses and specialised support each involves,”adds de Vries. To solve this, Silverflow claims it has actually constructed the very first payments processor with a”cloud-native platform “built for today’s technology stack. This includes offering simple APIs and “streamlined data circulations” straight integrated
into the card networks. Continues de Vries:”Instead of handling a complex network of acquirers across markets with lots of bank and card network connections to preserve, Silverflow supplies card-acquiring processing as a service that links to card networks straight through an easy API “. Target customers are PSPs, acquirers and “worldwide top-market merchants” that are seeing EUR500 million to 10 billion in yearly transactions.”As a handled service, Silverflow offers the maintenance for connections and new product development that users have actually normally had to support internal or deal with long-lasting product road maps with providers,” explains Kraal.”Based in the cloud, Silverflow is definitely scalable
for peak circulations and also provides robust data insights that users haven’t formerly had the ability to gain access to”. With regards to competitors, Kraal states there are no other companies at the minute doing something comparable, “as far as we know “. Currently, acquirers utilize conventional third-party processors, such as SIA, Omnipay, Cybersource or MIGS. Some business, like Adyen, have actually developed their own internal
processing platform. Why hasn’t a cloud-native card processing platform like Silverflow been done before and why now? An absence of awareness of the problem may be one factor, says de Vries.”Unless you have actually built numerous integrations to acquirers during your career, you are not mindful that the 30 to 40-years-old infrastructure is still in
use. This is not usually an issue some intense college graduates would take on, “he presumes.”Second, to develop this effectively, you need to have anticipation of the card payments market to navigate all the legal, regulative and technical requirements.”Thirdly, any big business currently active in card payment processing will be aware of the issue and have the relevant market knowledge. However, constructing a new processing platform would need them to designate their most gifted personnel to this job for two-three years, eliminating resources from their existing projects. In addition, they would likewise require to handle an intricate migration project to move their existing consumers from their present system to the brand-new one and risk losing some of the clients along the method”. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.