Payment Club, a subscription-based payment service provider, has completed $7m financing led by its co-founders in partnership with Unified Payments, subsidiary of Net Element and its institutional investor.
The financing was led by Payment Club’s co-founders with $2 million in equity. As part of Unified Payments’ “Team Unified” partnership program and Unified Prosperity Financing program, Unified Payments through its partnership with its institutional investor arranged a $5 million credit facility for Payments Club to fuel its growth initiatives, bringing total debt and equity financing to $7 million.
Since its launch in late 2017, Payment Club has focused on building a transparent payment acceptance model to support small and medium size businesses in the United States.
This disruptive model is built on the foundation laid by Payment Club co-founders Anthony Kutscher and Alex Ilinski, who have over 20 years of experience in the payments industry and who wanted to address the frustration of merchants being serviced by merchant services sales agents who lack knowledge of popular emerging payment technologies.
Payment Club VP and co-founder Alex Ilinski said: “Having witnessed our model deliver exceptional outcomes and drive demand, we knew we needed to partner with the reliable technology provider and raise capital to reach more clients faster.
According to the Subscription Economy Index 2017, Zuora; Eurostat; MEC+ analysis, the subscription business model has grown exponentially in recent years. Globally, the total number of companies offering a service based on subscription is estimated to be around 28,000.
In the past five years, revenue growth for subscription companies has outstripped that of the retail indices of the Nordics and global S&P 500 sales index.
Payment Club president and co-founder Anthony Kutscher said: “Utilizing a transparent subscription-based pricing model combined with the latest technology solutions, Payment Club can provide positive options to frustrated merchants and streamline their payment processes.”
The Company will use the funding to expand nationwide and hire up to 100 Payment Club membership advisors as well as create show rooms where business owners can come in and experience the products and get information on the variety of memberships the Company plans to offer.
Net Element integrated payments president Vlad Sadovskiy said: “Payment Club is an exceptional company that is revolutionizing the way merchants pay for accepting cashless transactions, and we look forward to a long term partnership with the Payment Club team as they grow the business.”
Payment Club is a subscription-based payments provider offering variety of membership plans for value added services, POS and flat fee payment acceptance with transparent, zero markup pricing.
Net Element operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise (“SME”) in the US and selected emerging markets.
In the US, the Company aims to grow transactional revenue by innovating SME productivity services using blockchain technology solutions and Aptito , our cloud-based, restaurant and retail point-of-sale solution.
Source: Company Press Release