Xfers, a Singaporean peer-to-peer payments platform has announced it raising US$2.5 million in seed funding from investors that include Facebook co-founder Eduardo Saverin, Golden Gate Ventures, 500 startups, GMO Venture Partners, Partech Ventures, BWB Ventures and Convergence Ventures.
Founded in 2014, the startup Xfers allows its users to manage large internet banking transaction with ease. They offer automated solutions to notify the user when an internet transaction is made. Graduated from Y Combinator, it offers various functions like wallet-as-a-service, payments collection and user-generated payment link.
With hte fresh funds, Xfers plan to invest into develop Xfer’s technology and to help the team aggressively pursue and convince small merchants to use Xfers to collect payments more effectively. Tianwei Liu, CEO of Xfers said, “The majority of the funding will go towards expanding Xfers’ market reach to Indonesia where 80% of the e-commerce is done via informal channels like messenger groups, social media and forums. A majority of these transactions are also completed via bank transfers manually, which Xfers aims to help solve.”
Though bank transfers seem inconvenient to many US consumers, it is a most common used form of online payment in many Southeast Asian countries where the credit card does not have high reach. E-commerce sellers send account information to buyers, who then use their bank websites or ATMs to transfer funds. Since financial institutions often do not notify sellers of new deposits, buyers have to tell them what time the transfer was made so they can verify the cash has been credited.
Xfers’ one-click payment link target at the merchants who do not want to deal with APIs. Rather they enter an item’s price and their bank account information into Xfers’ site. which automatically creates the link. When the payment is done, a notification is sent. The company’s services are free for peer-to-peer users and it generate revenue by charging a flat fee for the corporate clients.
Following Indonesia, Xfers is looking at expanding to Malaysia, Hong Kong and Thailand. It would compete with other players in the market like Bangkok-based Omise and Braintree and Stripe.