- Investment sought:
- Equity offered:
Many of our daily financial needs are made of 3 words – Pay, Hold, Send. Yet they often end up bringing difficulties because of cost, time and barriers of traditional banks.
At Paysend we have a clear vision of how to deliver these needs in an instant, freemium, borderless way and designed for ultimate customer satisfaction.
We have introduced a global card to card transfer to connect 12 billion cards issued by international systems: Mastercard, Visa, China Union Pay, and local cards.
We launched Paysend Link, where money is sent as a text message with fixed fees.
We created a multi-currency global account with a proxy card technology that allows customers to avoid cross border fees and easily manage their money.
In June 2019, we plan to launch a new global stablecoin on the Stellar network that will provide a consistent store of value that users can hold or seamlessly transact in real time.
Paysend is money FOR the future.
We are a team of experts from the banking and payments industry who became frustrated at the time it took our customers to open accounts, the costs to transfer money, and then waiting a month to get an account statement. We decided to revolutionise this poor approach to customers by becoming Fintech innovators to develop digital money services which serve the needs of all customers, not just the lucky few.
Instant, freemium and borderless, Paysend’s products are designed for the needs of customers who are always on the move, so they can enjoy a life without borders. For us, innovation never stops as we constantly find ways to deliver socially inclusive solutions to our customers like Paysend Global Transfers, Paysend Global Account and Paysend Link.
We have created all this in a short time because we have a single vision of what we are doing, and more importantly, why we are doing it. If you want to be part of money FOR the future, start using one of our products. And now you can invest in us too!
Substantial accomplishments to date
In just two years, Paysend has grown to over 720,000 users, we do over 2 million transactions every month and process over $55M per month. An average of 2,000 new customers sign up to PaySend every day.
Paysend created a global network of international payment systems, banks and local card schemes operating in over 70 countries and currencies.
Paysend is a Principal member of MasterCard, Visa and China Union Pay.
Paysend is a Level 1 PCI DSS processor and was awarded a Top Tier (5%) award by Mastercard for the quality of its processing in March 2019.
Paysend has developed in house all of the software and systems and owns the IP on the entire end to end customer journey.
This crowdfunding is part of a larger investment round led by Plug and Play, a leading Silicon Valley VC and early investor in both PayPal and N26 and Digital Space Ventures, an early stage investor into both Revolut and Tandem.
Paysend has 3 business units - Global Transfers, Global Account and Global Payments. The Global Transfers and Global Account units offer B2C products, whilst Global Payments is a B2B2C product.
Paysend links its business units together so customers acquired in one unit can be promoted into other units, with the aim to drive down customer acquisition costs.
Global Transfers generates revenue from a low fixed fee for each money transfer a customer makes, along with foreign exchange spread for transfers between different currencies.
Global Account has two sources of revenue. The Mastercard cards issued directly to customers by PaySend generate interchange fees for all transactions. Global Account can also be used for money transfers outside the Global Account community and fees are earned on these.
Global Payments revenue is derived from fees charged to merchants in relation to the transactions processed from purchases.
Use of proceeds
Paysend’s expansion is about adding strategic products in line with the vision of money for the future and to fund international expansion.
The latest product – Global Account – was launched at the start of May and funding will be used to build out an operational management team for this business unit.
We plan to for our Global Payments business to launch various B2B services that will utilise the power of Paysend’s technology to deliver functionality for businesses with the simplicity of use associated with its consumer products. PaySend intends to expand this team as a result of the funding.
The funding will also be used for international expansion, which involves developing partnerships with financial institutions around the world, and through these Paysend intends to market directly into new countries. This requires expansion capital and marketing investment, for which the fundraising will be utilised.
Investors in this round will be receiving ordinary shares, which on a liquidation or exit have the right to receive the price paid for such share before the remaining assets are distributed pro-rata amongst the ordinary shareholders.
An existing institutional investor has previously been issued 2,952,000 preference shares at a share price of $2.54, which have a non-participating liquidation and exit preference.
This means that on a distribution of assets, liquidation, return of capital or exit, shareholders with these shares will first receive 1x their investment amount before the remaining proceeds are distributed amongst ordinary shareholders unless they would receive a higher amount should they convert to ordinary shares.
The preference shares have anti-dilution protection. This means if shares are issued at a price below the price that the shareholders invested at, they will be issued new shares in order to not be diluted further.
Please note, the institutional investors in this round have invested an aggregate amount of USD $5,250,444.00 for ordinary shares at a pre-money valuation of $157,732,384. This valuation has been converted to GBP at the fixed exchange rate of 1.26254.