Banked has secured £2.35 million in seed funding to launch its new payment platform.

The investment was led by Force Over Mass, with with participation from previous investors Backed and Acrew Capital, bringing total fundraising to £5.35 million.

Founded in 2018, the London-based account-to-account payment software startup will use the money to get out of its beta testing phase.

By using Open Banking to initiate payments taken directly from a payee’s bank account, it is able to charge only 0.1 per cent to process payments, and in near real-time, rather than in some instances having to wait days. The company also claims its platform is able reduce fraud by up to 96 per cent, compared to traditional methods.

Banked chief executive Brad Goodall commented: “The current payments systems used by credit card companies and most traditional banks were designed 40 years ago and have become archaic, not to mention costly and inefficient for businesses to use.

“It’s time we welcomed the future of payments and given the current state of the economy, businesses need this now more than ever - we want to be at the forefront of this new age and will be rolling out our service across the UK and the EU with invaluable support from Force Over Mass and our other investors.”

Filip Coen, partner at Force Over Mass, added: “The team at Banked have identified product market fit across a number of verticals including e-commerce, B2B payments and big money industries such as gaming, trading and retail.

“We have been watching open banking payments closely, waiting for the right time, team, product and vision to invest in, and we see all of these within Banked and their approach.”

In March, Banked teamed up with freelance career service UnderPinned to launch a new automated payment service supporting businesses to eliminate the time they spend paying contractors.

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