Plastiq operates a platform that lets users enter credit card details to pay bills that otherwise don’t accept cards, charging a 2.5% fee. The service was initially consumer-focused but now derives roughly 90% of revenue from SMB customers. The company is on track to process more than $2 billion in transactions and reported revenue growth of 150% year‑over‑year from 2018 to 2019. Management said the business is approaching a $100 million revenue run rate and noted it "could be profitable if we wanted to be," though it is prioritizing growth. Plastiq has surpassed well over 1 million users and employs about 140 people. The new financing will be used to build features that give SMBs faster payments and processing services, a timely product as many small businesses face cash‑flow strain during the COVID‑19 pandemic. Plastiq provides a service that accepts credit-card payments from users and sends wire transfers, checks, or deposits on their behalf, enabling payments to recipients that otherwise don’t accept cards. Customers pay a flat 2.5% fee (business users can effectively reduce this to about 2% after tax treatment), and Plastiq can process individual payments of up to $500,000 or more. The company also offers tools for businesses to accept credit card payments and positions itself as a payments hub for small businesses. Plastiq reports more than 1 million clients and currently has a team of about 60 employees, with plans to add 100 more. Financially, the company has raised $73 million in total funding to date and is pursuing expansion of its small-business product and bank partnerships. Plastiq is a payments company that enables consumers to pay with their credit or debit card of choice even when merchants do not accept cards. The service requires no merchant integration and is consumer-focused, allowing users to make payments to organizations that traditionally don’t accept cards. Plastiq has rolled out payment categories in Canada including tuition, income taxes, and utilities. The company is based in Boston and maintains an office in Toronto. Plastiq plans to expand its payment service across Canada and the U.S., and will relocate its headquarters to San Francisco to recruit talent and immerse in the startup ecosystem. The company is led by CEO and co-founder Eliot Buchanan. Plastiq provides an online portal, payment buttons and an API that let consumers pay traditionally non-card-accepting merchants (tuition, tax, rent, donations, etc.) by processing credit-card transactions on their behalf. The company works with major credit card companies and payment networks and charges consumers a convenience fee of roughly 1.5–2.5%; there is no upfront cost to merchants. Merchants gain faster cash flow and reporting tools, and Plastiq offers integrations for deeper backend use. The startup says it has signed “hundreds” of merchants and processed “millions of dollars” since launch; it employs a team of more than 20. Notable partners include the University of Alberta, Mount Royal University, MetCap and ClubSoft (about 300 clubs). Plastiq is headquartered in Boston and also maintains offices in Toronto and New York. The company plans to use the new funding for product development, marketing and partnership efforts and is talking to banks to expand reach in the U.S. market. PLASTIQ is a Cambridge, MA–based credit-card processing startup that offers an option to pay for "big" purchases while emphasizing the payer experience. The company frames itself as being "about payers" rather than payments and promotes a convenient, a la carte, fun, rewarding, and secure payment option. PLASTIQ's messaging says it plans longer-term features to connect payers to what they care about, from education and travel to charity, church, music and the fine arts. According to SEC filings, PLASTIQ has raised $2.35M in venture financing. Sixteen separate investors participated in the offering, and Flybridge Capital is named as an investor. The article does not disclose operating metrics or prior funding rounds.

Total raised

$120M

Funding rounds

5

Latest round

Series D

Latest activity

Mar 2020