UK fintech Railsbank seeks to raise $100m

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London-based fintech Railsbank, which offers digital banking, is now approaching unicorn status, Sky News reported on Friday (February 4).

The company also recently acquired some assets of Wirecard, the collapsed and fraud-ridden German payments company.

Railsbank is working on plans to raise around $100 million in new funding. According to the report, part of this deal will be funded by FT Partners, the prolific fintech-focused investment bank.

Sources say the fundraiser would make Railsbank a unicorn – even with the public market sale of tech stocks impacting valuations.

Last year, Railsbank co-founder Nigel Verdon said the company was “transforming the financial industry the same way Apple did the music industry when they created iTunes,” and suggested at the time that Railsbank had a valuation of nearly $1 billion.

In January, PYMNTS wrote about Railsbank’s foray into buy it now, pay later (BNPL), noting that the company said it would help retailers retain more loot.

See also: The Railsbank financing platform enters the BNPL Arena

The BNPL solution would help retailers offer branded and fully integrated payments. Louisa Murray, chief operating officer for the company’s UK and European operations, said the solution allows the customer to see a company’s brand, rather than that of Railsbank.

Murray said one of the goals was to reduce distractions and allow retailers to maximize engagement with their users.

“Current BNPL suppliers are branding their own offers that take the customer away from the original retailer’s website and towards theirs,” the British company wrote on its blog last month. “Here they engage and nurture, which means the original seller is missing out on a wide range of marketing opportunities.”

Customers will be able to use the tool to split payments into up to 36 installments. Retailers will be able to clean up their checkout flows, discover new engagement opportunities at checkout and redemption, and link rewards accounts.

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NEW PYMNTS DATA: 70% OF BNPL USERS USE BANK PAYMENT OPTIONS, IF AVAILABLE

On: Seventy percent of BNPL users say they would prefer to use the installment plans offered by their banks – if only they were made available. PYMNTS’ Banking On Buy Now, Pay Later: Installment Payments and the Untapped Opportunity of FIssurveyed over 2,200 US consumers to better understand how consumers view banks as BNPL providers in a sea of ​​BNPL pure-players.

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