Open banking is changing the landscape of finance, making services more accessible and efficient. The advent of open banking is also challenging the stronghold that legacy financial institutions have had on the market. While much of the attention has been focused on consumer applications, open banking also streamlines the banking experience for businesses. Crezco is an open banking payment platform that offers free payment solutions for domestic B2B transactions. Users can make payments across Europe using a simple link or QR code, bringing much-needed convenience to small businesses without any hidden fees or surcharges. The company, founded in 2020, works with all the major UK banks and is integrated with popular financial applications like Quickbooks, Xero, and other payment invoicing platforms.
London TechWatch caught up with CEO and Cofounder Crezco Ralph Rogge to learn more about bringing open payments to the B2B market, the company’s strategic plans, recent round of funding, and much, much more.
Who were your investors and how much did you raise?
Crezco raised £3M in its seed fundraise from established individuals and companies in the Fintech space. Notable individuals who invested in the business include Charles Delingpole, founder and CEO of Comply Advantage which aims to tackle financial crime through artificial intelligence and machine learning; and Chris Adelsbach, Fintech investor and managing partner at Outrun Ventures. Crezco also received investment from UFP Fintech, early investors in Revolut as well as other angel investors, venture capital funds, and payment specialists.
Tell us about your product or service.
Crezco is the UK’s first open banking payment solution designed to make B2B invoice payments as convenient as B2C card payments without the costs collected by companies like Visa and MasterCard.
What inspired the start of Crezco?
In the mornings I would seamlessly pay for a coffee via contactless card payments, but paying a supplier’s invoice at my desk later in the day was anything but seamless. B2B payments were being neglected and I saw open banking as an opportunity to address the pain points.
How is it different?
Crezco is the only open banking payment solution designed to make B2B payments more convenient without the additional costs collected by companies like Visa and MasterCard.
What market you are targeting and how big is it?
We are targeting the UK and EU B2B market which is 50x the size of the B2C market by payment volumes. Nonetheless, our solution is best fit for SMEs rather than large corporations with complex payables and receivables solutions.
What’s your business model?
While we process domestic payments for free, we are able to monetise more value-add features, such as recurring payments and international payments. It’s a very similar model to Dropbox, Zoom, HubSpot, etc., which provide data-limited, user-limited and/or feature-limited freemium services.
What are your post-COVID office plans?
Whatever works best for the individual and their team. Some are in the office every day, others remain more productive from home. Nonetheless, as a company with large international ambitions, we need to make sure our internal operations and systems accommodate remote workers.
What was the funding process like?
There were various parties in the discussion, but we were focused on having a diversified, value-add cap table that brought more than just capital.
What are the biggest challenges that you faced while raising capital?
As a tech startup, we’re like an iceberg. The majority of our efforts lie beneath the surface, out of sight. To so many investors, we were just strangers on a Zoom call. I wanted to show everyone the engine we’ve built, but unlike with a Ferrari, it was hard to demonstrate this via a test drive.
As a tech startup, we’re like an iceberg. The majority of our efforts lie beneath the surface, out of sight. To so many investors, we were just strangers on a Zoom call. I wanted to show everyone the engine we’ve built, but unlike with a Ferrari, it was hard to demonstrate this via a test drive.
What factors about your business led your investors to write the check?
Other than the team and size of the market, I think our AML and KYC solution was particularly attractive and unique.
What are the milestones you plan to achieve in the next six months?
We have a backlog of features and products we would like to release. Lots to do!
What advice can you offer companies in London that do not have a fresh injection of capital in the bank?
It’s tough, I wouldn’t want to pretend to have a silver bullet, but worrying doesn’t help solve anything.
Where do you see the company going now over the near term?
Further into the EU near-term, beyond the EU and UK long-term.
What’s your favourite outdoor activity in London?
Tennis.
