Plastiq, a Boston-based firm whose products and services enable users to pay for all sorts of bills using credit cards, recently raised $20.3 million in a Series B funding round. Khosla Ventures brought in around $10 million, with the rest contributed by Atlas Ventures and Flybridge Capital Partners. Atlas and Flybridge also invested in the company in a previous funding round.
Plastiq also announced, in a press release, that it would be shifting its headquarters from Boston to San Francisco. The company says that San Francisco has a thriving startup landscape and would be best for some marketing-talent acquisition.
Plastiq brings credit-card payments to industries that usually do not support such payments in a dedicated manner. The unique thing about Plastiq is that it even enables payments for areas such as tuition, tax and even rent. Other potential verticals include paying for boats, art and donations. Companies in such areas usually don’t want to bear the cost associated with credit-card payments and thus do not provide dedicated infrastructure.
The payment service is marketed to consumers via emails from merchant partners. Consumers can also use the payment buttons offered on the merchant’s website. Merchants, on the other hand, can use the online portal to download payment data and generate reports. Plastiq also provides a dedicated API for seamless backend integration.
Here is a snapshot of the online interface:
Plastiq works with major credit-card companies and payment networks to bring in the essential infrastructure. The consumer is charged a small fee of 1.5-2.5 percent per transaction, and there is no cost to the merchant.
Plastiq’s partners include the University of Alberta, Mount Royal University, MetCap in Canada, and ClubSoft. The company is looking forward to targeting banks in the U.S. The current funding will also help the company focus further on product development and partnership efforts.