London-based open banking startup TrueLayer has raised $130 million in funding in a round led by Tiger Global and Stripe.
- The raise values TrueLayer’s at more than $1 billion, thus giving it “unicorn” status.
- Open banking, for which TrueLayer provides infrastructure, enables customers to transact with businesses more seamlessly via bank-to-bank payments, circumventing the need for debit and credit cards to make purchases and register with platforms.
- “People find themselves endlessly typing in the 16 digits of their debit cards, trusting unknown websites to store their card details, deferring to credit cards for bigger purchases, and getting stuck in clumsy authentication loops,” CEO Francesco Simoneschi said in a statement Monday.
- Removing this requirement has the potential to negate some of the onboarding frictions for crypto businesses. TrueLayer aims to allow instant deposits and withdrawals through a single integration between the user’s bank account and the crypto platform.
- TrueLayer counts such firms as digital banking service Revolut and crypto payments app MoonPay among its clients and has seen 400% growth in monthly volume and 800% growth in monthly value so far in 2021.