The fintech aims to enhance “account-to-account” payments, simplifying direct bank transactions.
Chilean fintech Fintoc, which facilitates online business payments directly from banks, announced the completion of its $7 million Series A funding round led by U.S.-based Propel VC.
This brings Fintoc’s total funding to $10.6 million since its seed round of $3.6 million post-Y Combinator acceleration. Founded in 2020 by Cristóbal Griffero and Lukas Zorich, Fintoc specializes in “account-to-account” payments and currently serves over 400 clients, including notable corporations and startups such as Unired, Rappi, Larraín Vial, and the Metropolitan Transport Network.
Fintoc has expanded its operations to Mexico, planning to make it the main market in the next 18 months. CEO Cristóbal Griffero explains, “Mexico and Chile share similar payment challenges: high processing costs, low acceptance rates, and slow fund liquidation.
We are addressing these issues to increase merchant revenues per payment and provide consumers a payment method that is completed in under 60 seconds, without the need for downloading apps or registering on websites, using only their bank.”
The company’s mission is to promote “account-to-account” payments as the easiest and safest payment method. To accelerate adoption, Fintoc has partnered with financial institutions like Banco BICE, Security, and Estado in Chile, enhancing its payment products. “The closer we are to the payment rails, the better the payment experience we can offer,” says Griffero in conversation with StartupsLatam. This strategy is also set to be replicated in Mexico.
Jay Reinemann, General Partner at Propel VC, commented on the investment: “We believe strongly in the Fintoc team’s ability to tackle the challenges of the Latam payment sector.
Similar to transformative companies like Stripe, Fintoc’s approach reflects a commitment to innovation and adaptability, aligning with the dynamic needs of the market.”