Disposable card issuer Privacy.com lands $10.2m
Privacy.com, the New York-based fintech which allows users to create disposable virtual cards, has landed $10.2 million in Series A funding.
The round was led by Teamworthy Ventures, with participation from Tusk Venture Partners, Index Ventures, Quiet Capital, Exor Seeds and Rainfall Ventures.
In the last three years, the start-up has issued around five million virtual card numbers. The idea is that users keep their real credit card numbers offline and safe.
New card issuing API
Privacy.com’s CEO, Bo Jiang, tells TechCrunch that the $10.2 million raised will go towards the launch of its new card issuing application programme interface (API).
In beta for the last year, it allows corporate customers to issue virtual cards and manage expenses for employees in their own back-end systems.
“We’re the first company that allows developers to see upfront, transparent revenue sharing and sign up and create cards programmatically the same day,” says Jiang.
The API is designed for early-stage enterprise companies that “traditionally need a lighter weight solution for their online payments”.
“It’s an underserved market, because most incumbents focus on the larger enterprise with monthly minimums and long-time frames,” says Jiang.
The fintech is pushing for more enterprise customers with the product roll-out. This is why it is increasing hiring in product development to fuel the push.
There are two plans: a starter and enterprise solution. The starter costs $0.50 cents per virtual card and $3 per physical card – a feature yet to arrive. International transactions more than 30¢ cost 1% of the transaction value.
Privacy.com then shares a portion – 0.2-0.4% – of the interchange fee with companies based on their monthly volume.
The enterprise plan is designed for companies processing more than $250,000 in transaction volume a month. It seems to be based on customised price points.