Collctiv, a group payments app based in the UK, has launched in the US with an “eager waiting list”.
The app allows a range of users to collect money in an “easy and secure way”, rather flexibly focusing on the use case instead of a particular set of needs.
For example, a group of friends can collect money for a birthday present, donations can be gathered for a fundraising drive, or businesses can use the app to collect revenue.
Collctiv’s launch in the US is ahead of schedule and comes on the back of the recent announcement of $20m of transactions processed.
Co-founder and chief executive officer Amy Whitell said: “There’s really nothing like Collctiv in the US, hence the huge demand for the solution. The digital payments space in the US is fragmented and dominated by P2P players who all cater for single peer-to-peer transactions.”
Venmo, a subsidiary of PayPal and mobile payment service in the US used by friends and families who want to split bills, is a prominent example of what is currently available in this space.
Collctiv’s unique selling point is that it’s free to use for average consumers. They can pay an optional 2% withdrawal fee or 5% on payments that come in from friends and family. Everyone else, including businesses and charities, are charged to use its services.
On why the Manchester-based fintech chose the US as its next market, Whitell said: “With our shared language and cultural similarities, this a priority market for us to expand into.”
“It’s a huge market that is underserved by current solutions on the market. Our solution helps to solve a real day-to-day problem and will make it easier for groups to collect and spend money.”
The fintech was launched in 2019 and has grown on the back of its $1.6m pre-seed funding.
In the UK, Collctiv has seen an average monthly growth rate of 16%, adding to its 420,000 users, including 15,000 companies. Payments through Collctiv have been received from 88 countries.