TruelairThe London startup, which provides a developer-friendly platform for companies, including other fintech companies, to tap into open banking, has revealed $ 70 million in new financing.

The Series D round is led by the addition of a new investor. Existing investors also participated, including Anthemis Group, Connect Ventures, Mouro Capital, Northzone and Temasek. New investors include Visionaries Club, Zack Kanter (CEO Stedi), Daniel Graf (formerly Uber, Google and Twitter) and David Afje (former SafeCharge CEO and CEO of UniPaaS).

TrueLayer says Series D brings the total investment so far to $ 142 million. The capital infusion will be used to continue expanding its open banking network, which combines payments, financial and identity data to enable companies to build new products that improve “how we spend, preserve and our transactions online.”

This will include further development of premium open banking services that go beyond mere access to open banking APIs and will enable more innovation across financial services, including financing and generally embedded payments.

To do so, and to support what it says is a growing demand, TrueLayer is expanding its engineering, product, and commercial teams. In the past 12 months, fintech has expanded its services across 12 European markets.

Over the years, TrueLayer CEO and co-founder Francesco Simoneschi and I have often spoken out about the use case or fatal use cases of open banks. We might finally get our answer: payments.

That’s because one aspect of open banking is payment initiation, which allows an authorized third party to initiate the transfer of funds from your bank account on your behalf as an alternative to card payments, which are not generated through online payments.

“We believe open bank payments will become the default online payment method, replacing other payment methods in the next five years,” Simoneschi says. “Open banking is digitally original and connected to a mobile phone first, moving money at a fraction of the cost, securely and conveniently, while providing a vastly better customer experience.”

Last year also revealed some issues with current payment methods, as people turned to digital channels to manage every aspect of their lives. “The problem is with the cards,” says TrueLayer CEO, which are not designed to work online and have been modified into existing online payment streams. Newer digital methods such as Google Pay or paper-based Apple Pay to overcome these gaps but don’t change the fundamentals. “

Simoneschi says the company has seen its payments API use grow rapidly as more consumers adopt instant bank payments. Volumes have grown 600 times over the past year, driven by a growing number of companies adopting open bank payments, including companies like Revolut, Trading 212, Freetrade and Nutmeg.

“We usually see that one in three customers chooses the open bank payment option after trying it once,” he notes, explaining that for some clients, nearly 70% of their clients use open banking as their primary payment method.

“There are a number of reasons why it makes sense for customers. First, they don’t need to remember card details. Instead, they authenticate using their face or fingerprints on their mobile device, instantly and securely. Plus, they never need to update the details stored in If their card was lost, stolen or expired. “

Simoneschi argues that open bank payments as a payment option also benefit merchants. TrueLayer adds: “These payments typically turn out 20% better than cards (and up to 40% with our flows) and have success rates above 95%, the equivalent of millions or hundreds of millions in year-end returns,” a founding partner.