TxVia, which develops payment-processing technology, announced today it has raised $27.5 million in fourth-round funding as it seeks to expand its resources and take the company further into the global marketplace.
The New York-based company processes a broad range of prepaid cards, including general purpose reloadable cards, gift cards, incentive payments, government disbursements, payroll and expense managements. Its clients currently include worldwide gift card distributors Blackhawk Network, Spanish-language broadcast media empire Univision Communications and InteliSpend, formerly American Express Incentive Services.
Five-year-old TxVia does this by offering companies a customizable version of its cloud computing “Platform as a Service” (PaaS) model, which allows clients to pick and choose which of TxVia’s applications they’d like to use to process payments — without buying and managing the underlying hardware and software infrastructure.
For example, a retail store might offer a rewards card to its customers to track their purchasing behavior. TxVia would allow them to roll such a program out in just a couple of weeks, where it might otherwise take the store months to build up the software, infrastructure and manpower to roll out that same program on their own.
That flexibility also gives TxVia customers the choice of outsourcing payment processing or running all processes on an in-house platform.
“The first iteration of technology in any new industry is not typically the long-term, sustainable solution, and prepaid – which is about 10 years old – is no different,” said Anil D. Aggarwal, chairman and CEO, TxVia. “With PaaS, we have successfully evolved processing from the initial to next generation and deployed it across many clients.”
Thus far, the company has 30 million cards on file and says it is on pace to double that number by year-end through organic growth and portfolio conversions.
The latest round of funding was led by new investor and venture capital firm Oak Investment Partners in conjunction with existing institutional stakeholders including Bain Capital Ventures, Espirito Santo Ventures and Village Ventures.
This latest financing brings the total of outside investment in TxVia to more than $55 million since its founding in 2006. It was operated under the name TxCore until it changed its name in 2008.
It currently has offices in Barcelona, Dublin, Tamarac, Fla., and San Salvador, El Salvador.