UK payments provider Boodil has raised £525k in pre-seed funding.
The capital will be used to expand its open banking payments technology and launch its cardless method this year.
Funding came from angel investors and business leaders, including Louis and Reg Rix, co-founders of Manchester-based businesses CarFinance 247 & 247Money, as well as Anthony Morrow, founder of OpenMoney, and 3B4 Investments.
Boodil’s payments solution is available as a rewards app for shoppers and as an offering for businesses.
Shoppers earn points by spending on the card. These can be redeemed later for rewards or to enter prize draws.
Merchants using the payments solution can enable users to checkout with their own banking app. This reduces fees for businesses and also the risk of fraud, Boodil said.
On his investment, Louis Rix commented: “I believe Boodil have identified a gap in the market with their proposition, which is being highlighted by the early adoption of their one-click cardless payment solution.
“Myself and Reg have experience in open banking, utilising it for 247Money and believe Boodil has the potential to really disrupt the open banking payments market.”
A number of merchants in various industries, such as retail and automotive, have already shown interest in Boodil.
The fintech firm believes that open banking can improve competition and transparency in financial services, give consumers control over their data and level the playing field between big incumbents and new entrants.
The four founders—Harry Luscombe, chief executive officer; Dally Singh, chief technology officer; Sam Ownes, chief operating officer; and Shane Williams, chief commercial officer—all have experience in technology and payments and have grown a number of startups across Manchester’s thriving tech scene.
Collctiv, a group payments app based in Manchester, was recently selected as one of 14 startups in Techstars New York City Accelerator, the only UK company to make the list. This followed its recent launch in the US.