Crezco raises USD 12m in Series A funding and partners with Xero

Specifically, Crezco has successfully secured USD 12 million with MMC Ventures and 13books capital leading the Series A funding round. This financing comes two years after the company's GBP 3 million seed round. Specialising in B2B account-to-account (open banking) payments, Crezco provides businesses the option to avoid conventional payment providers' fees, offering a more convenient and cost-effective solution. 

According to officials from Crezco, the use of account-to-account payments enables partners to shift the payment point from the bank to their platform, facilitating real-time payments globally. This approach is positioned as a notable instance of embedded payments. 

Additionally, Crezco has expanded its collaboration with Xero, making it the first significant small business cloud accounting software in the UK to incorporate bill payments using Open Banking. This integration allows SMEs to approve and execute bill payments directly within the Xero platform.

A closer look at the partnership with Xero 

Established in 2020, Crezco stands out among the growing number of open banking companies by focusing on B2B platforms and emphasising an improved user experience. Rather than simply offering a cost-effective alternative to card payments, Crezco's approach aims to replace manual bank transfers with a more convenient solution. 

Through this partnership, Xero is set to become the inaugural major small business cloud accounting software in the UK to integrate on-platform bill payments using Open Banking, facilitated by Crezco's account-to-account payments API. This solution enables small businesses to efficiently manage, approve, and execute bill payments securely within the Xero platform. Leveraging Open Banking technology, particularly account-to-account (A2A) payments, Crezco's approach provides a more accurate view of cash flow for small businesses. 

According to a recent report by Xero, 50% of UK small businesses express concerns about their financial future amid economic uncertainties. The incorporation of Crezco's technology and API into Xero's bill payments feature addresses these concerns, offering small businesses enhanced financial visibility. 

Investors in Crezco cited by eu-startups.com recognised the growth potential in this market segment. For instance, representatives from MMC expressed enthusiasm about the collaboration between Xero and Crezco, seeing it as a transformative moment for the company. They added that this new partnership presents a significant opportunity for Open Banking to address SME payments in the UK and potentially on an international scale.