Finix, a three-year-old, 30-person startup based in San Francisco, raised $17.5 million in Series A funding from Bain Capital Ventures, Visa and Insight Partners, among other investors. It aims to help companies manage and monetize payments by becoming their own payment processors. In the same way Twilio’s white-label software lets Uber users seamlessly call their driver through the app, and just as Marqeta lets DoorDash control how debit card transactions are processed, Finix lets companies own and control their payment processing.
Finix targets customers that process at least $50 million in annual transactions, a point when it might start to make economic sense to move away from Stripe, Square or PayPal. The fintech giants charge merchants from 2.75% to 2.9% of each transaction, plus other fees. Finix makes money through a monthly licensing fee and other surcharges, like an onboarding fee.