CROSS BORDER PAYMENTS business TransferMate has reached profitability as its expansion in the US market accelerates with a number of key partnerships.
The Kilkenny-based company, which is backed by AIB, develops solutions for cross-border payments.
Accounts recently filed for InterPay Limited, which is behind TransferMate’s European operations, show that it booked income of €11.2 million with a profit of €21,522 in 2018.
In the preceding years the company has been gradually narrowing its losses and booked a loss of €54,676 in 2017 on income of €9.9 million.
In May, it signed a major partnership deal with Wells Fargo that will see TransferMate handle all of the US bank’s payments coming in from international jurisdictions.
The company has set the US as a major target market and has secured regulatory approval to operate in all 50 states.
“Partnering with a significant bank, such as Wells Fargo, takes considerable investment of resource and time for any fintech, as the bank conducted a rigorous due diligence process,” Sinead Fitzmaurice, the company’s chief executive, said.
“Ultimately, the core focus of TransferMate on its global regulation was a key differentiator for us and we are proud that TransferMate is the only fintech that Wells Fargo has ever collaborated with outside of the United States.”
In June, it signed two other US deals with Nasdaq-listed Coupa Software, which develops business spend management software, and supply chain payments platform Tradeshift.
Deals with banks and partnerships with software firms in the payments and expense management space is a key growth strategy for TransferMate, Fitzmaurice said.
TransferMate secured investments of €30 million from AIB in 2017 and €21 million ING last year. The backing of two major banks valued the fintech firm at a reported €350 million in July 2018.
The ING investment and partnership has been helping TransferMate’s ambitions in Asia. It also secured regulatory approvals in Hong Kong and Singapore this year.
“We continue to significantly invest in our new markets as we secure further regulated licenses,” Fitzmaurice said.
She added that TransferMate is “well capitalised” following the ING investment in 2018.
“We are focused on executing the current growth strategy, investing in further markets and accelerating hiring plans across US, Europe, Australia and Asia as we support and roll out our existing and growing global partnerships network.
“Should TransferMate decide to pursue future investment rounds in the years to come, we will focus on investors who can complement and accelerate the company into its next cycle of growth.”
(Note: This piece was amended to clarify that TransferMate’s latest accounts reflect its European business.)