Financial technology is the bleeding heart of the Atlanta metro area. So much so that Atlanta is sometimes dubbed “Transaction Alley” for the number of payment processors and FinTech companies choosing to call Atlanta home. As a result, over 70 percent of payments are processed in Atlanta and throughout Georgia. According to the Atlanta Metro Chamber, many of these FinTech companies are global giants, but the fast paced growth of the FinTech scene also leaves room for entrepreneurs to stake their claim on a piece of Transaction Alley’s real estate. One of these fledgling startups goes by the name of ConnexPay.
The payments company was founded by Bob Kaufman, a former U.S. Bank employee. The idea for the company came about when Kaufman observed problems in the travel industry. Banks, he realized, do not like lending money to travel companies due to the future delivery risks. To compensate, banks charge enormous fees. This puts travel agencies under a credit crunch since they don’t receive money immediately after a sale.
To solve these problems, ConnexPay combines the role of the acquirer and the issuer of credit so that once funds are acquired from the customer, the app can then immediately issue a payment to the travel agency with no delays. The app goes beyond tending to the needs of travel companies and has extended to e-commerce intermediaries, event tickets brokerage, and bill payments, just to name a few. The idea is that the app solves the universal conundrums of the man-in-the-middle or, as Kaufman calls it, “the intermediaries.”
Interestingly enough, to expand the company, Kaufman has been willing to partner with a major credit company like Visa. This is the company that he once called an 800 pound gorilla worth disrupting in a statement. Now he says in a more recent press statement that “[c]ollaborating with Visa to help expand issuance of Visa virtual cards provides a substantial boost to ConnexPay.”
ConnexPay recently closed a $7 million series A funding led by BIP capital. With this funding Kaufman, plans to use a majority of it to hire new tech talent. The talent may be found in Atlanta since, according to a statement Kaufman gave to Hypepotamus, Atalanta is full of payments talent.