ConnexPay, a Minneapolis-based company, raised $7 million in Series A funding last month. The funding was led by BIP Capital, an Atlanta based venture capital and private equity investment firm. This marks BIP Capital’s 50th investment, with others including ChartSpan Medical Technologies and OncoLens.
In the simplest terms, ConnexPay is solving cash flow, credit, and fraud protection problems for travel agents by offering a single provider solution for payment acceptance and issuance. A characteristic of the travel industry is the difficulty for agencies and tour operators to obtain credit because of their high levels of risk. In addition, they commonly pay higher credit fees. ConnexPay offers unlimited credit, lower fees, and fraud protection, and handles all reconciliation in the background. ConnexPay helps travel agencies and e-commerce companies free up their finances in order to inject them back into their business.
“Imagine accepting a $1,000 payment from a traveler for a booking. The first thing ConnexPay does is perform a fraud analysis to make sure it will be a safe transaction. After receiving the authorization on that transaction, ConnexPay immediately gives you real-time access to $950 of those funds unlike other competitors who make you wait two to three days. The money left over, in this case $50, is a markup, and is provided to the user the next day. This allows the user to make payments to the travel suppliers,” said ConnexPay founder Robert Kaufman in his winning presentation at the 2018 Phocuswright summit.
ConnexPay participated in a summit held by Phocuswright, a global travel market research company, back in 2018 and was announced the winner of the Summit’s Award for Travel Innovation.
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Robert Kaufman, founder and CEO of ConnexPay, founded the company just two years ago. Prior to founding the company, Robert was the general manager of the virtual pay division of U.S. Bank. His tasks included overseeing product, marketing, and supplier enablement for all virtual payment solutions. Robert attended the University of Minnesota and has a Master’s degree in finance and strategic management from the University of Chicago GSB.
For more information please visit https://connexpay.com/.
