Interview: What Brite Instant Payments Network Means For Merchants
Brite Instant Payments Network (IPN) is a proprietary network that leverages the capabilities of open banking to equip businesses with instant payments processing and a true out-of-the-box solution. Lena Hackelöer, Brite’s Founder and CEO, explains what Brite IPN means for merchants and businesses and why it represents the next generation of open banking payments. Why did Brite choose to develop its own proprietary instant payments network? Lena Hackelöer, Brite Payment Founder and CEO: While there are a number of providers that facilitate payments based on open banking, we felt that merchants lacked choice when it came to complete solutions that could be easily integrated. We also felt that the current limitations of instant payment schemes in Europe could be addressed through the creation of our own proprietary payment network – Brite IPN. Ultimately, developing our own network ensures that we can provide merchants and businesses with a solution that is adaptive to their needs. How does Brite IPN differ from other approaches to open banking payments? Lena: Good question! The way we approach open banking payments with Brite IPN stands out in several ways. First, while there are a number of open banking-based A2A payment solutions on the market, our proprietary network has been developed to process payments instantly – and there’s a clear trend towards real-time payments around the world. Second, unlike payment initiation-only providers (pure PIS), we take full receipt of all funds, reconcile them, and accumulate a balance for our merchants. This means that we have complete control over the payment flow and payment status of every transaction that we initiate. Through Brite IPN, merchants benefit from end-to-end payment visibility, gaining valuable insights into the status and flow of their payments. Our smart routing feature is another key advantage. We determine the fastest and most efficient path for each payment, ensuring it reaches its recipient at maximum speed. This is particularly beneficial in markets where instant payments are not yet the public standard. Regardless of the local payment infrastructure, Brite’s smart routing ensures that merchants can process payments quickly and efficiently. From the perspective of merchants and businesses, what are the main benefits? Lena: There are several significant benefits for merchants. Firstly, there’s always-on availability. Brite processes payments instantly, 24/7/365. This minimises dependency on traditional bank clearing cycles and cut-off times, allowing merchants to receive payments at any time. Traditional bank clearing cycles and cut-off times often introduce delays in the availability of funds for merchants. This means that they may have to wait for a certain period before the funds from customer payments are actually accessible, which can impact their cash flow and hinder their ability to manage and grow their business effectively. It can also create risk in the form of unsettled transactions. Brite IPN also offers automatic reconciliation and reporting, which reduces operational costs for merchants. The payment reconciliation process is streamlined, and detailed reports are provided, saving time and enhancing overall efficiency. Finally, Brite IPN allows merchants to fund or request settlement in a currency of their choosing, helping to bridge the gap between Europe’s instant payments schemes – those covering both Eurozone and non-Eurozone countries. This reduces the operational costs merchants typically incur from transacting and holding funds in multiple countries and bank accounts. Why is the speed of payment processing so important? Lena: The speed of processing is crucial. Through Brite IPN, merchants can enjoy instant processing and fast access to funds. Speed offers another significant benefit, in the form of reduced risk of unsettled payments and fraud. Since most payments settle instantly through Brite IPN, the risk of unsettled credit deposits is significantly reduced. This provides merchants with greater confidence in the security and reliability of their payment transactions. Our network is continuously expanding and already includes non-Eurozone markets like Sweden and Denmark. Our goal is to provide merchants with access to instant payments in markets beyond SEPA Instant, thereby enabling them to expand their reach and target a wider customer base. How does the Brite Instant Payments Network contribute to addressing the needs of merchants in today’s business environment? Lena: The Brite Instant Payments Network is designed to meet the needs of merchants in today’s fast-paced business environment. With its complete and reliable solution for instant payments based on open banking, merchants can rely on the Brite Instant Payments Network to process payments quickly, securely, and efficiently. The ownership and control of our infrastructure, combined with end-to-end payment visibility and maximum speed of processing, empower merchants with a robust payment processing solution. What’s next for open banking payments and for Brite IPN specifically? Lena: Across Europe, we’re witnessing growing adoption of open banking payments as businesses recognise the operational and cost advantages, along with the enhanced convenience and security for customers. However, there is huge potential still to be realised. We’ve embraced an open banking-first approach to enable round-the-clock, instant payments processing. In doing so, we’re helping address the limitations of some existing schemes, like SEPA Instant, and the fragmented nature of real-time payments in Europe. Brite IPN also facilitates instant payments and payouts in markets and currencies outside of the Eurozone, which opens up new possibilities for businesses to embrace instant payments on a global scale. I expect that demand for instant bank payments is only going to grow in the years ahead, and the markets that we can serve with Brite IPN will grow too.
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As Brite raises $60M, account-to-account payment grows
Sweden’s Brite Payments Raises $60 Million to Accelerate Instant Bank Payments Across Europe
$60 million funding round led by Dawn Capital and joined by Headline and Incore Invest raised to fuel product development and further expansion Stockholm – 4 October, 2023 – Brite Payments, a leader in instant bank payments, today announced a $60 million funding round led by specialist B2B software investor Dawn Capital and joined by Headline and existing investor Incore. Brite leverages open banking to offer businesses easy-to-integrate, instant account-to-account (A2A) payments and payouts. The fundraise follows a breakout year for Brite. The Stockholm-based company was founded by experienced payments exec Lena Hackelöer in 2019 and is now one of Sweden’s fastest-growing fintechs. During 2022, Brite more than doubled its transaction volume and revenue, and reached profitability. Today, its offering is available in 25 countries across Europe through connections with 3,800 banks, touching more than 350 million end consumers. Brite will use the fresh funding to accelerate its geographic expansion, strengthen its presence in existing markets, and invest further in product development. Notably, the capital will drive further development of the Brite Instant Payments Network (Brite IPN); a proprietary network that is the backbone of the company’s offering. Brite IPN facilitates 24/7 instant processing 365 days a year, and offers significant advantages over traditional open banking payments – including taking full receipt of funds and settling them rapidly on behalf of merchants, in the currency of their choice. The round was led by Dawn Capital, an early backer of other Swedish fintech category leaders, including iZettle (sold to PayPal for $2.2B) and Tink (acquired by Visa for $2.0B). The funding round was joined by Headline, a global VC firm that has backed rapid growth fintechs around the world, including Pismo, the Brazilian payments infrastructure provider (exited to Visa for $1.0B). These major new investors join existing Brite backer Incore Invest, which has further strengthened its position. The fundraise is a clear sign that fintechs demonstrating sound business fundamentals, sustainable growth, and a clear path towards profitability can secure high-level venture backing despite the funding slowdown in the sector. Lena Hackelöer, Founder & CEO, Brite Payments, said: “We see account-to-account payments gaining momentum across Europe, but merchants are still struggling to realise the full potential for their businesses. That’s why we’ve built a complete instant A2A payments and payouts offering that can be plugged into any checkout, while eliminating operational hassles such as settlement accounts, reconciliation or FX. 2022 was our breakthrough year, and with this funding round, we’re ready to accelerate our growth and bring Brite to more markets and checkouts across Europe.” Brite serves customers in a growing number of industries and verticals where instant bank payments and payouts offer numerous advantages over traditional card-based payments. A2A payments – including instant payments facilitated by open banking – deliver operational cost-savings, a smoother customer experience, reduced fraud risk and elimination of chargebacks. Globally, A2A payments are expected to record double-digital annual growth over the next five years. Josh Bell, General Partner, Dawn Capital, said: “We are on the cusp of open banking 2.0. The prospect of real-time account-to-account payments becoming mainstream across Europe is on the horizon, and Brite stands to be the category leader. We’ve been on the ground in this space from the start, with early investments in Swedish fintech leaders including iZettle and Tink, and we believe Brite is on an equally stellar path. Lena is an extremely impressive CEO with first-rate domain knowledge and the all-round skills to build another market-leading global fintech from Europe. Deploying a driven bootstrap approach, Lena and her talented team have built a company with an impressive product and have rapidly reached profitability – a real feat for an early-stage open banking startup. We now can’t wait to help power Brite onto the world stage.” Jonathan Userovici, General Partner and Fintech Practice Lead, Headline, said: “Companies like Brite are rare. Laser-focused on execution, they have built a great, real fintech product away from the spotlight. They reached profitability last year by offering a superior merchant and consumer product while quickly growing revenue. Open banking is at an inflection point and the main driver of competition in the financial industry. With Brite, Lena and her team are building the category winner we have been looking for in a space that grows yearly at a double-digit pace.” Nicolai Chamizo, Partner, Incore Invest, said: “Brite Payments has built the technical foundation for tomorrow’s payments – and I believe they will go from strength to strength as open banking payments continue to gain acceptance. We have been closely aligned with Brite’s vision for instant payments and payouts since the start, and it was a natural step for us to strengthen our position and deepen our commitment as Brite achieves this significant milestone.” For more information about Brite Payments, please visit: https://britepayments.com/ For more information about Dawn Capital: https://dawncapital.com/ For more information about Headline: https://headline.com/ For more information about Incore Invest: https://incoreinvest.com/ Media enquiries: press@britepayments.com About Brite Brite Payments is a second-generation fintech based in Stockholm. The instant payments provider leverages open banking technology to process account-to-account (A2A) payments in real time between consumers and online merchants. With Brite, no signup or credit card details are required as consumers authenticate themselves with top-of-mind details using their bank’s usual identification method. Brite is connected to more than 3,800 banks within the EU and its offering is currently available in 25 markets across Europe.
The Essential Benefits of Instant Payments in ERP Systems
Enterprise Resource Planning (ERP) systems offer a variety of benefits, from creating a single source of truth over workplace operations to reducing manual processes and removing bottlenecks. According to a recent survey, ERP accounting functions, in particular, are the most crucial function for 89% of software users. Yet, key functionalities like payments are conspicuously missing from many ERP systems available today. Even if some ERP accounting platforms offer some form of credit transfer option, legacy payment methods may be holding your organisation back. Read on to learn more and discover the benefits of instant payments in ERP systems so you can find the right solution for your business. The pros and cons of adopting ERP systems Like other digital transformation products, ERP systems offer a wide range of advantages. By digitising and centralising workplace operations, senior business leaders can identify ways to cut expenditures or grow revenues at the same time. In fact, 95% of ERP software users reported that some or all of their business processes improved post-implementation. Yet, the software isn’t without its challenges. Firstly, your planning capabilities are only as good as the ERP system you opt for. So, it’s important to find the right one. Catch-all ERP solutions may not work well for niche industries, like logistics or the creative sector, where workflows are less predictable. As a result, businesses often require some level of customisation which can add costs. What’s more, ERP solutions can take anywhere from 6-12 months to implement and nearly 30% launch later than anticipated. In turn, they can be highly complex projects to navigate. Ironically, for all their capabilities, there are still some features missing from ERP systems. Depending on your chosen platform, you could automate up to 90% of accounts receivable (AR) and accounts payable (AP) functions. While this sounds impressive, many ERP accounting solutions fall at the last hurdle. More specifically, failing to offer credit transfer functionalities like payments. Even if your chosen ERP accounting platform does offer some form of credit transfer solution, they’re often limited to legacy payment rails. For example, bank transfers or card payments. ERP solutions with embedded instant payments have the potential to supercharge the value of your software. To see how, we’ve outlined the key benefits below. The benefits of Instant Payments within ERP systems Here’s a quick overview of the key benefits of having instant payment integrated within your ERP accounting software: How to identify the right instant payments provider As with most ERP systems, you can only tap into the benefits of ERP-integrated instant payments if you have the right instant payments provider. Unfortunately, not all providers are created equal. Choosing the right one is essential since you’ll rely on their network to send and receive money safely and securely. Some of the most important factors worth checking for are: Discover the power of Instant Payments in ERP systems with Brite Brite is a leading provider of Instant Payments across Europe. Powered by open banking, our technology makes sending money easier and faster than ever before. With bank-level security embedded throughout, we ensure every transaction is kept safe from fraud. Users don’t need to sign up or enter their credit card details required. Instead, customers authenticate transactions using their bank’s usual identification method, making the entire process quick and easy. Learn more about our Instant Payment solutions and how we can help by contacting one of our team.
Auctionet Opts For Brite to Power Instant A2A Payments as Online Auction Platforms Grow in Popularity
Stockholm – 13 September, 2023 – Brite Payments, a leader in instant bank payments and one of Sweden’s fastest-growing fintechs, today announced that it has partnered with Auctionet to provide its users with seamless, instant account-to-account (A2A) payments. Founded in Sweden in 2011, Auctionet has grown to become a leading digital auction platform, with more than two million items sold through its digital marketplace. More than 65 local auction houses – primarily Swedish but with a growing number of auction houses throughout Europe – use Auctionet’s platform to reach global buyers bidding for art, furniture, design items, antiques, and collectibles. Through its cooperation with Brite, Auctionet can respond to evolving customer expectations around payments and the growing popularity of mobile bidding, while addressing its own need for more efficient payment processes. Brite Instant Payments enables instant A2A payments for Auctionet through Europe’s open banking infrastructure. In 2022, Brite introduced ‘Single Sign’, which allows users to pay straight from their bank account with only one authentication step. The mobile-friendly solution has been shown to help users pay up to 40 percent faster than standard A2A payment flows. Auctionet also benefits from automatic payments reconciliation provided by Brite, which reduces manual back-office processes. “Making sure that our marketplace is efficient, safe, and streamlined is critical to delivering first-class customer experience. We work hard to guarantee quality items, as well as a secure and transparent buying process,” said Niklas Söderholm, Founder & CEO, Auctionet. “With Brite Instant Payments we can extend this customer experience focus to the payment process, with a fast, secure, and convenient way for buyers to complete their purchases following a successful bid.” Popularity of online auction platforms continues to grow Online auction platforms have surged in popularity over the past few years. The transition to digital platforms during the pandemic has been one driver, but the growing spending power of millennials is also a major factor. Now primarily aged 30-40, millennials make up a growing proportion of auction buyers and are comfortable with the digital platforms offered by the likes of Auctionet. With the ability to bring local auction houses to global buyers, the online auction marketplace is projected to grow at 11.45% CAGR through until 2027, reaching more than USD $11 billion. “We believe that instant bank payments not only give Auctionet’s buyers a seamless way to pay, but also address some of the long-standing payment problems faced by online marketplaces. In particular, the high and unpredictable fees associated with card payments, and the risk of chargebacks and fraud,” said Lena Hackelöer, Founder & CEO, Brite Payments. “Plus, with our ever-expanding network of instant payments coverage, we are well positioned to support Auctionet as it extends its reach in a growing number of markets across Europe.” For more information about Brite, please visit: britepayments.com ABOUT BRITE Brite Payments is a second-generation fintech based in Stockholm. The instant payments provider leverages open banking technology to process account-to-account (A2A) payments in real time between consumers and online merchants. With Brite, no signup or credit card details are required as consumers authenticate themselves with top-of-mind details using their bank’s usual identification method. The company currently operates across 25 markets in Europe and is connected to more than 3,800 banks within the EU.
