The dynamics of the payments industry are changing as consumers and businesses shift away from cash to digital payment methods. Despite this dramatic change, the frameworks for payment infrastructure have not necessarily adapted as rapidly. As pandemic-driven behaviors now become habits and the new normal, the payment industry is developing new frameworks that are retooling the core. DigiDoe is a multi-currency payment infrastructure platform for businesses and consumers that uses biometrics to provide secure payment solutions. The platform’s proprietary FacePay technology allows consumers to make payments without a card or phone using 7D authentication, eliminating the risk of fraud entirely. This leads to up to an 80% decrease in fees for merchants that they are then able to pass on savings to customers. Payments are also lightning fast and the infrastructure is scalable. Current credit card companies can handle 60,000 transactions per second; DigiDoe dwarfs this figure with its technology able to handle 200,000 per second.
London TechWatch caught up with DigiDoe Cofounder Alexandra Vidyuk to learn more about the future of payments, the company’s strategic plans, latest round of funding, which brings the total funding raised to £1.3M, and much, much more…
Who were your investors and how much did you raise?
It was a pre-seed round and we raised £852,500. We have another tranche of funding closing at the end of January. Currently, our lead investor is Joint Journey in this first tranche, along with PLF the seed fund managed by Flashpoint Venture Capital and I2BF Global Ventures Ltd, and several individual investors.
Tell us about your product or service.
DigiDoe is a next-generation multi-currency payments system which uses cutting edge biometrics-based technology to enable secure payments, while eliminating the need for a mobile phone or card to be present, and which also reduces fraud, cuts fees and costs for merchants and speeds up transactions.
What inspired the start of DigiDoe?
The payments system the world uses today is stuck in the dark ages and is not fit for purpose, with hackers trying to get hold of your cash every step of the way and high transaction fees. We were determined to develop the payments system of tomorrow, using the very latest biometrics-based technology, and give it to the world today.
How is it different?
Our patented multi-factor biometrics-based 7D user authentication technology leverages the latest technological and biometrics advances including secure channel “signatures” to enable multi-currency payments. Our system knows who is making a transaction and who is receiving the transaction and there is no middle-man. Fraud is almost impossible.
The main advantages of DigiDoe’s solution are: eliminating existing types of fraud in remote payments, instant transactions, compliance with AML requirements, fraud protection, and the cost of transactions is 10 times cheaper than competitors.
What market you are targeting and how big is it?
This is a global payments solution. We are currently focusing on payment processing companies that work with point-of-sale, fintech applications, neo-banks, second-tier banks and gaming platforms. DigiDoe is targeting the UK market with a plan to expand into the European Union and the US over the next 24 months.
What’s your business model?
We see ourselves as a payment provider who can benefit financial institutions and merchants at this point of time by offering cheaper, safer, faster payments.
What are your post-COVID office plans?
We don’t have office in London yet as the team is small and very dynamic – so we all work from home. In the future as we growing as a team, we would consider joining one of the cool coworking places for startups or incubators.
What was the funding process like?
We have secured original funding £410K from founders, friends and family which gave us enough runway to build MVP.
Our most recent initial institutional investment round took us 6 months and we went for institutional investors and experienced angel investors this time.
What are the biggest challenges that you faced while raising capital?
One of my mentors, who is currently CEO of one of the UK unicorns, mentioned to me that the first external fundraising was the most stressful time of his life, even more stressful than IPO. I wholeheartedly agree. I also concluded the raise at the same time as giving birth to my daughter, which caused additional joy. Our particular challenge was that payments industry is quite hidden from public eye and it is in the background of financial industry, which makes it difficult for investors to relate or understand the size of the problem.
One of my mentors, who is currently CEO of one of the UK unicorns, mentioned to me that the first external fundraising was the most stressful time of his life, even more stressful than IPO. I wholeheartedly agree. I also concluded the raise at the same time as giving birth to my daughter, which caused additional joy. Our particular challenge was that payments industry is quite hidden from public eye and it is in the background of financial industry, which makes it difficult for investors to relate or understand the size of the problem.
What factors about your business led your investors to write the check?
Unlike many other fintech startups, we are not fixing isolated the pain point or sticking on a plaster, but we approached the payments industry with a question: ‘How would payments look like if they were invented in the 21st century’. I think this fundamental approach was one of the most attractive propositions for investors.
What are the milestones you plan to achieve in the next six months?
This fresh funding gives DigiDoe a 12-month runway to enhance our proprietorial technology and to grow. We intend to launch in Europe and then further afield. We will be making key hires and securing new customers.
What advice can you offer companies in London that do not have a fresh injection of capital in the bank?
Traction, traction, traction! In my experience, this was what every investor wants to see. In addition to that, investors would like to see bias to action, focus on delivery, and passion to perform in the team. Never give up, even if the first 100 investors said ‘No’. Also, fundraising is the perfect exercise to validate your product or service.
Where do you see the company going now over the near term?
We are focusing on traction and revenue in 2022 as well as improving our product.
What’s your favourite outdoor activity in London?
One of my friends told me ‘If someone wants to complete their PhD – you need to start long distance running’. I can say the same about startup – running clears my mind, removes stress and all my best ideas came to me while running. Additional bonus – it keeps your body in good shape.
