A2A payment provider Aeropay secures Series B funding

Account-to-account payment provider Aeropay has raised $20 million in Series B financing, led by Los Angeles-based fintech venture capital firm Group 11, which it will use to fund product and market expansions.

Chicago Ventures and Continental Investment Partners also participated in the funding round.

Aeropay’s proprietary Pay by Bank technology enables businesses to move money “faster, affordably and securely”.

Its platform connects bank accounts using ‘Aerosync’, a “homegrown” bank aggregator that the company announced at the same time as the funding round.

Aeropay said its “compliance-first” strategy has focused on collaborating with banks, partners, and regulatory counterparts, and that it is now expanding into new markets, such as financial services, wellness, utilities, QSR and property management.

The latest investment will be used to develop new product offerings, enhance strategic partnerships and “explore greenfield opportunities”.

“Payments in most verticals operate on archaic systems filled with excessive fees and risks,” said Aeropay founder and chief executive officer Daniel Muller.

“We’ve built a bank-driven payments network that protects businesses against fraud, saves them money, and gives their customers an easy way to pay. Put simply, we are building the next-generation payments network.”

Aeropay processes more than $1 billion in volume annually and reached cashflow profitability in the fourth quarter of 2023.

“For years, we’ve searched for a company advanced enough to solve the pains and inefficiencies of the card payment market, arguably the last bastion of the traditional financial services industry,” added Dovi Frances, founding partner of Group 11.

“Aeropay has tackled the most complex technological and compliance challenges, making them the most likely player to seize upon this massive addressable market.”