Moov Financial has raised $45 million in Series B to expand its money movement platform.
The funding round was led by Commerce Ventures, and the new capital will be used to grow both the platform and its utilization by customers, Moov said in a Tuesday (Jan. 31) press release.
“We are grateful that Commerce Ventures and our other investors share our vision of building the future of money movement,” Moov CEO and Co-founder Wade Arnold said in the release. “In a cloud-native world, security, scalability and data transparency are paramount, and this investment helps us scale our platform and expand into new use cases.”
Moov is active in a Banking-as-a-Service (BaaS) space that fosters the development of additional banking options by letting third-party digital banks and financial institutions (FIs) connect with legacy banks through application programming interfaces (APIs).
As PYMNTS reported in January 2022, a quarter of banks and credit unions said at the time that they would invest in or develop APIs, which is one of the predictors of open banking growth.
In addition, 10% of banks said they were in the process of developing a BaaS strategy, and another 20% were considering pursuing a BaaS strategy.
BaaS will have a banner year in 2023 as traditional FIs will be the critical ingredient for embedded banking software platforms to create new operating systems for enterprises, Treasury Prime CEO Chris Dean told PYMNTS’ Karen Webster in an interview posted Jan. 4.
“It’s exactly the right time, right now, for embedded banking because it’s a real revenue generator for the banks and for corporates,” Dean said at the time.
Moov’s Series B round follows the company’s becoming a net new U.S.-licensed acquiring processor, issuer and program manager, according to the press release.
In addition, the firm has built direct connections to all the major card brands, the Federal Reserve and The Clearing House. The company’s wallet and ledger structure helps clients automate workflows, and its dashboard and drop-in web components help B2B companies quickly deploy their user experiences (UX), the release said.
“This significant and strategic funding round recognizes Moov’s differentiated full-stack approach to powering payments,” Commerce Ventures Founder and General Partner Dan Rosen said in the release. “By simplifying and consolidating access to money inflows (acquiring), storage (ledgering) and outflows (issuing, disbursements) via a cloud-native API, Moov is revolutionizing the way software businesses handle complex, multi-party payment flows.”