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Fidel has received funding that it hopes to use in the expansion of its services to other countries. The startup which is in partnership with major card companies, such as Visa and MasterCard, offers developers easy access to the card networks.
Fidel, a fintech startup based in the United Kingdom – which provides developers with a functional application programming interface (API) for building new offers on networks belonging to major card companies – has just successfully pulled in $18 million in its recently concluded Series A funding round.
The funding round was led by two venture capital firms based in the U.S., QED Investors and Nyca Partners. Other participants include 500 Startups, Horizons Ventures, Commerce VC, Citi Ventures, Elefund, and RBC Ventures Inc., a Royal Bank of Canada subsidiary. The round also involved former Sungard CEO Cris Conde as well as TransferWise founder Taavet Hinrikus, as angel investors.
Fidel’s business is built on a beneficial partnership with card networks Visa, American Express and MasterCard, and its suite of APIs allow developers to build applications that are “card-linked”, supporting any of these cards, within “a matter of minutes.” This allows several developers to access all three networks, via just one point of entry. In addition, Fidel also tokenizes and anonymizes the card numbers which helps the respective projects who use its services, easily stay compliant to regulations.
According to Subrata Dev, Fidel Co-Founder and CEO:
“All of this helps businesses get to market and scale faster. Card-linking is the optimal choice for any user journey that relies upon real-time payment information, location accuracy and a frictionless customer experience.”
Part of Fidel’s business model is a strong focus on loyalty. The company allows its users to opt in for a loyalty program which allows the user to amass points that could be used to either claim certain rewards or get some cashback percentage.
Already, members who use the British Airways Executive Club app, have the opportunity to earn Avios points as they do any shopping using already-linked cards (credit or debit), with selected retailers. Other Fidel clients include Royal Bank of Canada – which has already developed tree apps which use Fidel’s technology – as well as Klarna Bank AB, a Swedish bank which provides financial services for firms who use online payments.
Dev further spoke on how Fidel aims to offer a solution to both the developers and the card companies as well.
“Our goal at Fidel is to supercharge innovation by empowering everyone in the ecosystem. By making it easy for developers to build on top of the infrastructure, the card networks stay relevant. By removing the barriers to entry for developers, applications can be brought to market more quickly. That drives value back to consumers, who get the same benefits and user experience they are used to receiving with other online services.”
According to Fidel, the new funds will be channeled into increasing the company team and also growing Fidel, expanding its reach international throughout North America as well as the Scandinavian region and Asia Pacific as well.