MADRID, Feb. 24, 2021 /PRNewswire/ -- Amidst and despite the Covid-19 crisis, Card Dynamics has raised 2.5M€ as it consolidates its roll out in Spain and Latin America. Big Sur Ventures has led the round, accompanied by GAA, an investment management firm based in the US, and other private investors.
Whilst these are unfavorable times for fintech fundraising, Card Dynamic's focus on subscriptions and the growing transition to card payments has allowed the company to gain traction with banks and retailers and secure funding. Growth in new subscriptions immediately increased during the first few weeks of the Covid period, ranging from 20%-40% higher than the pre-Covid timeframe. April saw the highest growth of any month with a peak growth of 85%[1].
Founded in 2018 by Mario Cantero, former Head of Global Acquiring of Santander Group, Card-Dynamics has developed a B2B platform that bridges the data gap between banks and retailers, reducing or eliminating frictions in the subscription economy and ultimately vastly improving customer experience. The platform is a hybrid between "Payments" and "Open Banking." For example, thanks to Card-Dynamics, a card-holder can be fully enrolled (payment method included) at a merchant from the bank's secure environment. Or a retailer can -with customer permission- get customer payment details updated for registered cards and thus avoid losing recurring payments when something happens to the existing card.
What makes Card Dynamics so powerful is that all parties on the platform find strategic value and immediate results at the same time: banks restore a relevant day to day dialogue with customers while continuing to intermediate recurring transactions, retailers inaugurate an alternative and highly efficient customer acquisition channel while having accurate customer and payment data to charge customers. End customers are delighted with a marvelous user experience avoiding repetitive data capture as a result of a collaboration between banks and merchants.
The funds raised will be used to establish local business development teams in countries like Brazil, Chile, Mexico, Ecuador and Peru as well as product enhancement driven by revolutionary technological and regulatory trends. The platform is cloud based and holds PCI and several other security certificates; ready to serve a global base of banks and retailers.
1.https://recurly.com/research/pandemic-impact-subscription-growth-rates/
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