As per reports, the Philippines was the fastest growing digital market in Southeast Asia in 2021. Amidst the pandemic, there was a surge in the consumers and merchants embracing digital platforms in the country.
Helping businesses adapt this new normal is PayMongo, a fintech startup in the Philippines. It makes it easy for businesses to accept payments through credit card, e-wallets, and over-the-counter transactions.
In a recent development, PayMongo raised $31 million in a Series B round. With this round, the total investment secured by the fintech startup to date is nearly $46 million. The investment comes less than a year of raising $12 million in a Series A funding round in September 2020 from Y Combinator, PayPal co-founder Peter Thiel, and Stripe.
The investment round was led by Tinder co-founder Justin Mateen’s JAM Fund, ICCP-SBI Venture Partners, and Lisa Gokongwei’s Kaya Founders along with participation from existing investors Global Founders Capital and SOMA Capital.
PayMongo will use the funds to further develop its existing payments infrastructure, add additional financial services, and create a one-stop-shop for all the financial needs of entrepreneurs and online businesses. Also, the fintech startup aims to explore regional expansion.
“This investment is a testament to our growth and the continued growth of our merchants,” said PayMongo cofounder and CEO Francis Plaza, a Forbes 30 Under 30 Asia alum from 2020. “With this Series B, we will invest further in our merchants’ successes by giving them more means to move money seamlessly online.”
“As one of PayMongo’s first investors, I’ve seen their path from simplifying payments for a handful of businesses to now being a company that thousands of merchants depend on for their day-to-day operations,” said Mateen. “I’m excited by their progress and thrilled to support the team once again as they generate greater economic opportunities through the digital economy.”
Stripe for the Philippines!
PayMongo was founded in 2019 by Francis Plaza, Jaime Hing III, and Luis Sia. It is a payment gateway that enables online businesses to easily accept various digital payment methods. It is the first Filipino-owned fintech startup incubated by Silicon Valley-based Y Combinator, the premier seed accelerator in the world.
Called “Stripe for the Philippines”, PayMongo it aims to lower the barriers to entry for Filipino businesses to the digital economy.
Since the Series A funding round in 2020, PayMongo has tripled its merchant base. Also, its monthly transaction volume has increased four times. While the growth is all set to continue, PayMongo will target small- and medium-sized enterprises and micro enterprises accounting for 99% of businesses in the Philippines.
What does PayMongo do?
PayMongo partners with financial institutions. Its easy-to-integrate PayMongo API accelerates internet businesses. It can be integrated into websites and apps, thereby allowing them to accept payments from bank cards and digital wallets like GrabPay and GCash.
For social commerce sellers and other people who sell mostly through messaging apps, the startup offers PayMongo Links, which buyers can click on to send money. PayMongo’s platform also includes features like a fraud and risk detection system.