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Boodil secures GBP 525K for Open Banking payments

Wednesday 16 November 2022 08:49 CET | News

UK-based Open Banking payments and consumer engagement app Boodil has raised GBP 525,000 in pre-seed funding, an official press release shows.

 

UK-based Open Banking payments and consumer engagement app Boodil has raised GBP 525,000 in pre-seed funding, an official press release shows.

 

Boodil aims to launch a cardless payment method in Q4 2022 which seeks to improve the way consumers spend and engage with brands whilst being rewarded for their purchases. By leveraging Open Banking payment technology, which is reportedly making it safer and easier for customers to pay, the Manchester-based company gained some early traction with clients, the press release states. 

The pre-seed raise was made possible with investment from angels and high-profile business people including the co-founders of Manchester-based business, CarFinance 247 & 247Money, the founder of OpenMoney, the former owner of the Mere Golf Resort, 3B4 Investments, and the founder of Henley’s Clothing. With this investment, Boodil states that it can lay the foundations to develop the proposition and hit the market in 2022.

Boodil is an alternative payment solution which addresses the checkout needs of merchants. The company’s solution is reportedly allowing users to check out easier and safely with their own banking app. According to the company, businesses can save on significant fees and reduce the risk of fraud and chargebacks whilst settling their funds instantly. Regarding customer incentives, Boodil can be used as a preferred payment method, allowing customers to earn points for their purchases, which they can later redeem for rewards along with the option to enter various prize draws, inclusive of holidays, vouchers, electronic goods, and more, the press release continues.

According to the co-founders of 247Money, who were participants in the funding round, Boodil has identified a gap in the market with their proposition, which is being highlighted by the early adoption of their one-click cardless payment solution. Boodil has sparked initial interest amongst a number of merchants in industries that include retail, automotive, and booking apps. The four founders all have experience in the technology and payments space having grown several startups across Manchester’s tech ecosystem and hope to replicate the learnings with Boodil, the press release concludes.

How can Open Banking help businesses?

According to the UK’s Open Banking Implementation Entity (OBIE), small businesses can leverage Open Banking for more effective financial management, allowing them to become more profitable. Firstly, through Open Banking, SMEs gain access to updated financial data at their desired time, which can be used for forecasting, credit application, or faster payments. Secondly, through Open Banking-powered alternative payments, such as account-to-account (A2A) payments, which can be offered in B2B and B2C propositions, SMEs can save costs associated with card payments. 

Open Banking payments is a key topic in the freshly released Open Banking/Open Finance report. To read more about the topic and also read OBIE's contribution, we encourage you to download the whitepaper.


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Keywords: investment, funding, Open Banking payments, Open Banking
Categories: Banking & Fintech
Companies: Boodil
Countries: United Kingdom
This article is part of category

Banking & Fintech

Boodil

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