Written by Finovate
Payments technology company Modo Payments announced this afternoon it received an equity investment from Deutsche Bank. The amount was undisclosed. Prior to today’s announcement, Modo had raised a total of $11.3 million since it was founded in 2010.
The German bank plans to leverage Modo’s technology to expand its digital business-to-business and business-to-consumer payments. Specifically, Deutsche hopes to extend its payment capabilities into non-traditional channels, such as the mobile wallets and peer-to-peer networks of Alipay, Paypal, M-Pesa, and WeChat.
John Gibbons, head of global transaction banking at Deutsche Bank, refers to payments as the “bloodline of banking.” In the press release, he noted that Modo will give Deutsche “more flexibility” in facilitating non-traditional transactions. “Going forward, we will be able to directly process payments to mobile wallets and app-based payment solutions,” Gibbons added.
“The Modo team is focused on doing the most good for the most people by reducing friction in payments. That is why we do what we do every day, and this partnership with Deutsche Bank is a great opportunity to work with one of the world’s largest payment providers that can implement our technology on a global scale and further our reason for being” said Bruce Parker, founder and CEO at Modo. “We’re excited to see where this relationship can take us and how we can continue creating interoperability between payment systems around the world.”
Modo exchanges payment data across platforms on behalf of banks, payment networks, and providers, enabling them to store, share, and track payment event data. The company presented at FinovateFall 2016, where it showcased its Modo Digital Payments Hub. Late last year, Modo appointed former CEO of Klarna North America, Brian Billingsley, as its Chief Revenue Officer. More recently, the company earned top honors at the ETA TRANSACT Payments Pitch-Off earlier this year.