PayTic wants to remove Excel spreadsheets from payment reconciliation.
Charlottetown-based PayTic has secured $2.95 million in an investment round led by Build Ventures, a venture capital firm located in Nova Scotia that invests in early-stage tech companies across Atlantic Canada.
The financing also saw the participation of Island Capital Partners, Concrete Ventures, and Outlierz Ventures.
Founded in 2020 by CEO Imad Boumahdi, PayTic’s mission is to help banks, credit unions, and other financial institutions increase control, transparency, and auditability of their payment products with less effort and cost.
Boumahdi immigrated to Charlottetown in 2018, bringing over 15 years of experience in the payment industry. Prior to launching PayTic, he was the director of operations (Canada, United States, and the Asia-Pacific region) at Carta Worldwide, a Toronto-headquartered startup that provides a transaction processing platform.
In those 15 years, Boumahdi said he recognized that FinTech has been primarily focused on improving the checkout experience, which added more complexity to the operations and risk control. In response, Bouhmadi built the technology to bring the back-end of managing payments up to speed by digitizing the cross-functional processes behind payments.
Boumahdi began the production of PayTic’s product in August last year. He then joined the Propel cohort in June 2021 to help structure PayTic’s strategy.
PayTic’s solution is cloud-based and aims to replace the use of large excel spreadsheets to reconcile settlements, control risks, and track chargebacks. Using spreadsheets, according to PayTic, can cause potential errors, compliance issues, and a high cost of operations. PayTic’s platform centralizes the program management for its users so they don’t have to navigate between different technologies and systems. PayTic wants to target clients that have MasterCard and Visa products from both issuing and acquiring sides.
With this new funding, PayTic plans on adding key hires to its team, and expanding its customer base across North America, the United Kingdom, and Africa.
RELATED: OneVest secures $5 million to help companies like Neo Financial launch wealth management products
PayTic is part of a growing number of FinTech startups in Canada that are created to support traditional financial institutions instead of competing with them. OneVest is one such company, with technology aimed at making it easier for banks and FinTech startups to roll out digital wealth management services. OneVest recently secured $5 million in seed funding, garnering the support of FinTech-focused investors like Luge Capital and National Bank’s NAventures.
Vancouver’s Responsive, which provides wealth advisor solutions for banks and private managers, raised $3.5 million in a Series A round led by Co-operators, a Canadian insurance company.
Other Canadian companies that operate in the same space as PayTic include Uplinq, MeetAmi, Cybrid.
Featured image courtesy of PayTic.