Yapily raises $51M in a Series B round led by Sapphire Ventures

At a Glance

Yapily, an open-banking infrastructure provider, raised $51 million in a Series B investment to assist the company in expanding its commercial footprint across Europe. By focusing on approved APIs, Yapily can deliver a quicker and more reliable experience.

Yapily, an open-banking infrastructure provider, has raised $51 million in a Series B funding round led by Sapphire Ventures. Other participants include Lakestar, HV Capital, and Latitude.

The money will be used to grow throughout Europe. It will also invest in its market-leading infrastructure, paving the way for open finance and financial inclusion for all. Yapily will expand its staff in France, Spain, the United Kingdom, Germany, and Italy.

For numerous European markets, Yapily has been working on a single, uniform open banking API. Developers can use that programming interface to communicate with third-party bank accounts from within their applications.

The core difference between us and most of the players in the space is our focus on the infrastructure. Yapily, unlike Tink or TrueLayer, works in the background. Yapily’s logo is nowhere to be found, and the firm has no front-end interface.

Stefano Vaccino, the founder and CEO, told TechCrunch

Also, Yapily is solely focused on API integrations. Banks must now provide standard APIs to interact with third-party applications due to recent legislative changes in Europe (PSD2). While some companies still refuse to provide APIs, many are finally following the regulations.

Yapily can provide a faster and more dependable experience by concentrating on official APIs. Other companies developing unified open banking APIs use a combination of official APIs, screen scraping, and private APIs. Screen scraping is time-consuming, and remote APIs can go down the drain overnight.

Yapily’s API may be used for a variety of applications. For example, the API allows you to examine a bank account’s balance, account holder name, and transaction history for the previous two years. 

However, the firm has seen that an increasing number of consumers use open banking to make payments from their bank accounts. Account-to-account payments are less expensive than card payments. Cards also have an expiration date, resulting in churn. One-time payments, international payments, bulk payments, and recurring payments are all possible with Yapily’s API.

In addition, the firm will develop partnerships with banks in new markets in Northern Europe and the Baltics, and beyond Europe. Mr. Vaccino added that they would look into Latin America, particularly Brazil, at the start of next year. Banks in Brazil already have a large number of open banking APIs.

We are delighted with this strategic investment, demonstrating Yapily’s position at the heart of disrupting global financial infrastructure. As we got to know Sapphire Ventures, it was clear that they are hugely supportive of our strategic approach and share our vision of open finance. Open Banking infrastructure is fundamental to how data and payments move between organizations worldwide, and it will shift the power to consumers for years to come. We are only starting to scratch the surface of what’s possible.

Stefano Vaccino, the founder and CEO, told TechCrunch

We have been following open finance and the tremendous opportunity it presents in Europe and beyond for some time. FinTech is evolving from a vertical to a horizontal sector as companies in many verticals are moving to embed financial services into their offerings. This is a trend we believe is here to stay and relies on the development of a robust financial infrastructure layer.

Andreas Weiskam, co-founder and managing director of Sapphire Ventures

The decision to invest in Yapily was clear— an infrastructure-first approach to deliver better and fairer financial services for everyone. Europe is a fast mover in embracing an open and API-centric model, and Yapily is at the epicenter of financial innovation to push the regulatory boundary and shape the future of the open economy.

Andreas Weiskam, co-founder and managing director of Sapphire Ventures

American Express, QuickBooks, Bux, Vivid Money, Volt, and Moneyfarm are among Yapily’s current customers.

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