TrueLayer Secures $50M Funding Round as It Charts Path Toward Profitability

TrueLayer, Europe’s premier pay-by-bank network, has announced the successful closure of a $50 million funding round, marking an extension of its $130 million Series E. The round was led by Northzone, with participation from existing investors Tencent, Tiger Global, Temasek, and Stripe. This fresh injection of capital serves as a significant endorsement of TrueLayer’s mission to transform digital payments and position itself as the leader in pay-by-bank solutions.

Over the last 12 months, TrueLayer has continued to cement its status as the leading pay-by-bank provider across Europe. With a 200% revenue growth in 2023, the company has deepened its customer base and expanded its partnerships, including key collaborations with Stripe and lastminute.com. These efforts have fueled its rapid rise, positioning TrueLayer at the forefront of the growing movement toward cost-effective, secure, and fast payment systems.

A Milestone Year for TrueLayer

In 2023, TrueLayer's ecosystem handled over $50 billion in payment volume, processing 150 million transactions annually. Additionally, the company became the first globally to surpass 1 million variable recurring payment (VRP) transactions per month, setting a new industry benchmark.

This level of operational achievement is supported by partnerships with some of the world’s leading FinTech players, such as Revolut, Zopa, Coinbase, and Robinhood. These partnerships highlight TrueLayer's ability to integrate seamlessly into a variety of digital platforms, providing pay-by-bank solutions that benefit both merchants and consumers.

A Vote of Confidence from Investors

Commenting on the success of the funding round, Francesco Simoneschi, Co-Founder and CEO of TrueLayer, said:

“This funding is yet another vote of confidence in our company, our technology, and is testament to the foundational infrastructure we’ve created. Reaching this scale and position required a lot of time, capital, and commitment. We’ve built a unique ecosystem connecting banks, merchants, and consumers. This investment enables us to continue to challenge the status quo in payments and grow our presence in areas like e-commerce. The growth of pay-by-bank helps merchants reduce their cost of payments and puts money back in consumers’ pockets.”

This funding round not only validates the vision of TrueLayer but also reinforces its commitment to reshape the payments landscape. By providing merchants with a more efficient and cost-effective payment method, TrueLayer is empowering businesses while simultaneously offering consumers greater convenience and security.

Northzone’s Perspective on Pay-by-Bank Growth

Jeppe Zink, Partner at Northzone, expressed excitement over the investment, noting:

"We are seeing significant momentum towards pay-by-bank as merchants – particularly in e-commerce – adopt a quicker, more cost-effective way to transact. TrueLayer is perfectly positioned to harness this trend and has built the impressive, market-leading infrastructure to be a category winner. This investment reflects our confidence in TrueLayer’s vision and leadership position in their market. We’re excited to support them as they push this space forward."

As the demand for streamlined, low-cost payments grows, particularly in the e-commerce sector, TrueLayer stands out as the go-to provider for merchants seeking to reduce transaction fees and improve customer experience. By leveraging the pay-by-bank model, merchants can bypass expensive card processing fees, resulting in significant savings, especially for high-volume businesses.

Path to Profitability and Beyond

While the recent funding will accelerate TrueLayer’s growth trajectory, it also positions the company for long-term profitability. With more businesses moving towards digital payment solutions and seeking ways to reduce operating costs, TrueLayer is primed to become the leading player in this space.

TrueLayer's pay-by-bank approach simplifies the payment process by allowing direct transfers from bank accounts, eliminating the need for intermediaries like credit cards. This innovation not only benefits merchants through reduced transaction costs but also offers consumers faster, more secure payment methods that put them in control of their finances.

In addition to its core product offering, TrueLayer continues to build a comprehensive payment network, one that integrates with large-scale platforms like Stripe and provides cutting-edge payment solutions for a wide array of industries. From financial services to e-commerce, TrueLayer's infrastructure is designed to meet the evolving needs of both businesses and consumers.

TrueLayer’s Vision for the Future

Looking ahead, TrueLayer is focused on further expanding its ecosystem, growing its customer base, and continuing to lead the charge in pay-by-bank innovation. The company is committed to pushing boundaries in digital payments, with plans to extend its reach into new sectors and geographies.

As Francesco Simoneschi noted:

"We have built a payment network that is used by millions of people every day at the same time as maturing our business model and building trusted partnerships with some of the largest merchants in the world."

With a solid foundation and a network that processes billions in transactions, TrueLayer is poised to capitalize on the growing trend toward bank-to-bank payments. The recent funding round underscores investors’ confidence in the company’s ability to transform how we think about digital payments and offer a path to profitability that benefits businesses and consumers alike.

Conclusion: Leading the Charge in Pay-by-Bank

TrueLayer’s latest funding round represents more than just an injection of capital. It is a clear signal of support for a new era of digital payments, one that prioritizes efficiency, cost savings, and security. As TrueLayer continues to grow and innovate, it is reshaping the digital payments landscape, offering a future where pay-by-bank is not just an alternative but the standard.