Fintech Payaut today launches an automated payment solution for online platforms and marketplaces. The solution helps online businesses that are part of the payment flow to easily comply with the new PSD2 regulations, while still able to use multiple Payment Service Providers (PSP’s). Payout is founded by seasoned veterans in the payment industry and e-commerce, with experience at for instance Adyen and Procter & Gamble.
SplitPayment, KYC and multiple PSP’s
Payaut’s payment solution ensures that money flowing through online marketplaces will end up at the right seller, whether it’s a private individual or a business. The platform acts as a link between the Payment Service Provider and the sellers. Hence, Payaut prevents online marketplaces from being locked in with one single PSP. Instead, marketplaces will be able to combine multiple payment services, such as Adyen, Stripe or Mollie. This offers them multiple benefits over existing solutions, that connect to merely a single PSP.
Payaut also automatically assures the money ends up with the right persons or companies in the right ratio with SplitPayment. Payaut verifies sellers on each platform instantly and automatically to comply with all the necessary ‘Know Your Customer’ regulations in the PSD2.
Instant PSD2 compliance for online marketplaces
Payaut offers a unique solution that excludes online marketplaces from the payment flow. It’s imperative as it releases these platforms from the obligation to become an official Payment Institute to comply with PSD2; the new European directive that regulates payment transactions between companies and their customers. To become a Payment Institute, one needs to obtain a license with Dutch central bank DNB. It’s an expensive, time-consuming and elaborate process and hence not a viable option for countless online marketplaces. Payaut’s solution covers it all at once and ensures compliance with all the new rules.
“Numerous online marketplaces in The Netherlands received a letter from DNB regarding non-compliance with the new European PSD2 guidelines,” says Ernst van Niekerk, CEO of Payaut. “It was quite an unwelcome surprise because they now have to obtain a license as a Payment Institute, a route that’s nearly impossible for many of them. But it’s either that or they have to pick and choose only a single PSP to manage their payment flow. To be locked in with one PSP really limits their scalability.”
“With Payaut, we take those concerns away”, says van Niekerk, “ as Payaut operates as a virtual PSD2 license holder for these online marketplaces, allowing them to combine multiple PSP’s without holding a license themselves. It saves precious time and energy and allows online marketplaces to stay focussed on their core business.”
New funding round, leading customers
Payaut previously closed a pre-seed funding round of €1 million with one of the most prominent seed-funds in the world, UK-based VC firm LocalGlobe. Amsterdam-based Finch Capital also participated in the round, as well as several seasoned professionals from the finance and payments industry.
The fintech startup from Amsterdam is currently in talks with investors and expects to close a large seed round within a couple of months. For now, Payaut already has some noteworthy launching customers. Dutch Airbnb for boats, Barqo, and for motorbikes, Motoshare, have both simplified their payment flow with Payaut. So did insurtech SharePeople, which offers income protection for entrepreneurs.
Decades of (fin)tech experience
Despite being a young company, Payaut includes an experienced team of founders. CEO Ernst van Niekerk worked in the online payment industry for over ten years. The past two years he was a Product Manager at Adyen, responsible for Adyen for Platforms. Chief Commercial Officer Pieter de Haas has more than ten years experience in various management positions at multinationals such as Procter & Gamble and specializes in e-commerce and online marketplaces. CTO Gillis Haasnoot has an extensive background in the tech industry, for instance at Spil Games and as a founder of Sportalize and Android app Voetbal Livescore.