Checkout.com, the quiet London-based payment platform, has acquired its first startup, ProcessOut. Checkout.com surprised everyone last year when it announced a gigantic $230 million Series A round. It turns out the payment processing boom is not over yet.
Checkout.com focuses on enterprise clients with customers all around the world. It provides a full-stack payment service, from accepting transactions, processing them and detecting fraud. It helps with reconciliation thanks to an API and a reporting hub.
The startup is particularly efficient when it comes to supporting multiple currencies and payment methods. You can accept payments in more than 150 currencies. Checkout.com supports debit and credit cards, Apple Pay and Google Pay, as well as local payment methods such as Klarna, iDEAL and Giropay, and e-wallets such as PayPal and Alipay.
ProcessOut is a French startup that realized e-commerce companies have been leaving money on the table by relying on a single payment provider. The company built a smart routing checkout module that works with dozens of payment providers.
When you enter your card number, ProcessOut can select the best payment provider when it comes to fees and acceptance rate. For instance, a local payment provider can be a lot cheaper than Stripe, but transactions get declined a lot more often. The startup can figure out whether a transaction will go through before selecting an obscure payment provider.
The company then shows you dashboards so you can visualize payment data in a single location. You can generate report and match transactions on your bank account with transactions on different payment providers.
That combination of data visualization and smart routing helped them score some big clients, such as Glovo, Veepee, Rakuten.fr and Dashlane. In 2019, ProcessOut tracked 10% of online transactions in France. Transactions representing $20 billion have been analyzed by ProcessOut over the past 12 months.
With today’s acquisition, ProcessOut’s team of 14 employees are joining Checkout.com’s team of 600 employees. Checkout.com isn’t disclosing the terms of the transaction. Checkout.com is getting a ton of insight on different payment providers. It can learn from ProcessOut’s technology to optimize its internal payment workflows, as well.