FinTech Firm Switch Raises $2 Million in Funding
The FinTech startup Switch has just announced a $2 million funding round — its largest to date. Since its founding in 2013, the firm has sought to help consumers, merchants, and card issuers manage card info online. As GeekWire reports, these efforts culminated in the release of their CardSavr API earlier this year.
Back in February, Switch unveiled CardSavr as a way for card issuers to allow customers to utilize new cards immediately instead of waiting for physical cards to arrive in the mail. More importantly, the API enabled users to automatically update their card data on sites such as Netflix, Southwest, Amazon, and many more. The hope is that, by making the process of activating and updating new cards easier, it would save frustrations on the part of all parties and limit lost revenue for merchants.
In a statement about the benefits that the company’s CardSavr API provides, Switch CEO Chris Hopen said, “Switch is a win-win-win for card issuers, cardholders and merchants/billers.” He went on to explain, “Merchants and billers want — and some need (Netflix, Uber, etc.) — cards on file in order to operate and provide friction-free purchasing for customers. Top financial institutions gain valuable insight and higher transaction volume by helping their customers with the burden of managing payments online.” Moreover, as Geekwire notes, Switch utilizes numerous security technologies including end-to-end encryption and two-factor authentication to help keep customer data safe.
Of course Switch isn’t resting on their CardSavr laurels. According to Finovate, the company’s TopWallet product is currently in beta. The site explains that this tool is branded to the card issuers and allows users to manage both their payments and passwords from a central hub.
This $2 million investment isn’t the only big news Switch has announced in recent months. In August the company added former Mastercard executive Carol Cosby and former Macy’s EVP Amy Hanson to its board of directors. At the time of the announcement, Cosby said in a statement, “Switch technology is the disrupter the financial industry needs and at a pivotal time. The company is providing banks, issuers and online merchants one-of-a-kind tools to make them smarter and more profitable during the credit card replacement process, while simultaneously improving customer satisfaction and keeping cards Top of Wallet.” She continued, declaring, ” No one in the FinTech payments business is offering this technology and making it easy to integrate into existing operations.”
With CardSavr already gaining traction, TopWallet currently in beta, and $2 million more in its coffers, Switch seems poised to make a big impact in the world of FinTech and beyond. Like so many others in their space, the company is helping to solve a major pain point that not only affects consumers but also merchants and card issuers alike. Thus, expect to hear more about Switch and their FinTech products in the months and years ahead.