16. October 2013–
Apps with payment functions require complex infrastructure. This is what Payworks supplies – and it's now secured investment.
The Munich-based mobile payments company, which started up one-and-a-half years ago, has closed a round of financing in the "high six figures" with four angel investors and Vienna-based institutional VC fund Speed Invest.
Payworks emerged from the incubator of Pay.On founder Marcus Rinderer, Christian Bamberger and Nikolaus von Taysen. It's a web-based platform that gives payment service providers the technical infrastructure they need, whether they want to integrate in-app payments or wallets or develop a so-called "merchant app" to accept credit card payments using a reader. Payworks effectively provides the backend service for these kinds of clients.
"The 'iZettles of this world' have the problem that they need to build very complex infrastructure, and because of regulatory requirements, particularly so in Europe," Payworks cofounder and CEO Christian Deger explained. "We provide this infrastructure via software-as-a-service."
Payworks' customers include ordering apps Opentabs, Orderman and Zerved, and payment service provider PayUnity. Deger is reluctant to reveal which other companies rely on Payworks' white-label technology.
The company earns a fixed charge per customer transaction and has brought in revenue from its first day of sales. As well as early seed funding from the Pay.On incubator, the team previously received support from Germany's Federal Ministry of Economics, via the Central Innovation Programme for SMEs (Zentrales Innovationsprogramm Mittelstand).
The fresh capital will be used to increase the team, from 12 people today to about 16 by year's end. It's possible the company will go hunting around the Munich Centre for Digital Technology and Management. That's the old study haunts of cofounders Deger, David Bellem, Simon Eumes and Johannes Lechner – and, Deger estimated, a good 80 per cent of the other current recruits.
FOR RELATED POSTS, CHECK OUT:
Germany’s Heilemann brothers snap up mobile POS business Pepperbill
Startup of the Week – Avuba, the startup that wants to bring banking into the 21st century
“Maybe I’ll make my next startup a bank” – 5 top trends from the future of banking