Adfin wants to fix bill payments for sole traders and small companies | TechCrunch

Adfin wants to fix bill payments for sole traders and small companies | TechCrunch

to meet Edfin, a new UK-based fintech startup that wants to help companies pay their invoices – whatever that may be. Founded by two fintech experts, the company is starting with a problem and building a product around it. The problem is that it is still difficult to get paid if you are established as a sole trader or even as a small company without a dedicated person for administrative tasks.

The process of getting paid for work done by small businesses and sole traders such as lawyers, accountants, consultants, tradesmen and the like usually involves sending the customer an invoice with your bank information. But you also need to track incoming payments and reconcile them to make sure you get paid. Add to that, the experience isn't as good for your customers.

For returning customers, you can try and set up direct debit. But it can be difficult for these types of businesses to convince their customers to let them withdraw money directly from their bank accounts. As for card payments, this often incurs a processing fee.

“The average consumer makes only 21 e-commerce purchases a year,” Edfin co-founder and CEO Tom Pope (pictured left) told TechCrunch. He previously worked for Tink, an open banking startup. Obtained through Visa.. “All the buzz has been around e-commerce, but for your average law practice or accountancy firm, their payments are stuck in the 90s — bank transfers, card payments over the phone, paying really high fees. “

Adfin argues that sole traders and small businesses don't necessarily think about the most convenient payment method. Instead, they just want to get paid and move on. At its core, the startup is building an invoice management platform and a payment platform to simplify key admin and make payments less of a headache.

After uploading receipts to Edfin, its users can use the platform to send payment requests via email, WhatsApp or SMS.

Adfin then automatically decides to display the payment method based on various factors, such as whether it is a returning customer, a small receipt, etc. The company supports Pay by Bank using card payments including Open Banking, Apple Pay and Google Pay. If the customer doesn't pay right away, Adfin also automates sending reminders.

“Our customers aren't paying people. They don't need to be payments experts. And I think the fact that they're not paying idiots is probably taken advantage of a little bit, if I'm honest.” ” said the Pope.

“With Adfin, we only offer you payments. We pay you and we handle the payment mix. And of course, it's in our interest that you maximize your success rate.” And try to minimize your expenses.

As Adfin acts as a central repository for all your invoices, companies can check all pending invoices and see if they have been paid. Edfin currently charges 1% per payment. It doesn't matter which payment method is used, it will always be 1%.

“As a merchant, everyone wants to get paid as quickly as possible, as cheaply as possible and with as little effort on your part as possible,” Edfin co-founder and CTO Cipriani Diaconasso (pictured right) told TechCrunch. wants to.” He spent the first 12 years working. Mumbo, a cloud-based banking platform. “So it's a bunch of capabilities that we're building that just maximize the time you get paid and minimize the cost.”

The startup has already raised $4.9 million in seed funding, co-led by Index Ventures and Visionaries Club. Several business angels also participated in the round, including Thejn Lemmers (Aden founding team); Guillaume Pousaz (Checkout.com founder); Eugene Danilkis (Mambu co-founder); Ferdinand Meyer (co-founder of Moss); David de Picciotto (Pledge co-founder); Maximilian Eber and Mike Wehmeier (co-founders of Tactile); and Joseph Bovet (co-founder of Tiller).

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