Businesses have historically been hesitant to adopt commercial card payments since card payments have transaction fees that are typically paid by the supplier. Boost Payment Solutions, an innovative fintech company, has redefined the rules of commercial card payments and in 2018, the company experienced a 70% increase in its commercial card volume transaction. Boost’s versatile cloud-based payment technologies service a wide array of industries that range from freight & logistics to higher education. Boost Payments network can be found in North America, South America, Europe, Asia, and Australia with plans to expand to Africa in Q3.
AlleyWatch chatted with CEO and Founder Dean M. Leavitt to discuss the changing landscape of commercial card transactions and Boosts recent fundraising round.
Who were your investors and how much did you raise?
Our lead Investors were Mosaik Partners and North Atlantic Capital and we raised $12M total ($5M venture debt and $7M Series B equity).
Tell us about the product or service that Boost Payment Solutions offers.
Boost Payment Solutions is a global provider of B2B payment technologies that optimize the use and acceptance of commercial cards. Boost Intercept®, our cloud-based platform, eliminates the need for suppliers to manually extract data from virtual card payments and process transactions via hardware or software. Boost’s suppliers enjoy a completely automated commercial card acceptance experience, the lowest cost of acceptance, and peerless remittance data seamlessly integrated into their ERP for automated reconciliation. Boost’s newest product, Dynamic BoostSM, offers flexible interchange pricing based on the needs of buyers and their suppliers.
What inspired you to start Boost Payment Solutions?
Over the course of my 20 years on the consumer side of the credit card processing arena, I witnessed many failed attempts by companies big and small to attack B2B acquiring. As commercial cards began to gain traction, I wanted to capitalize on the huge gap in the marketplace where no one was addressing the pain points commercial card-accepting suppliers were experiencing.
How is Boost Payment Solutions different?
Boost is the only FinTech / acquirer focused exclusively on the B2B market, making our products and services tailored and unique. Boost’s business model is rather unique in that we serve multiple masters. While our technology is focused on curing the pain points associated with commercial card acceptance on the supplier side, we also serve corporate and institutional buyers. We are an acquirer that partners with other acquirers and a FinTech that partners with other FinTechs.
What market does Boost Payment Solutions target and how big is it?
Each year businesses pay other businesses over $120T, most of which is exchanged via inefficient and archaic payment methods with little or no remittance data exchanged. Boost serves many verticals domestically and abroad, including healthcare, telecom, freight & logistics, media, transportation & aviation, real estate, manufacturing, higher education, hospitality, IT, insurance, corporate services, and financial services.
We currently process payments to suppliers in over 30 countries across North America, South America, Europe, Asia, and Australia, and we expect to launch Africa in Q3 of this year.
What’s your business model?
Boost derives most of its revenues from acquirer fees paid by suppliers who accept commercial cards via our platform. Boost’s primary distribution channels are commercial banks, B2B middleware players and our international business development team.
Who do you admire in the startup world and why?
I continue to be enamored by young entrepreneurs who bring software products into the world that make our lives healthier, easier and more efficient.
I continue to be enamored by young entrepreneurs who bring software products into the world that make our lives healthier, easier and more efficient.
What was the funding process like?
Our Series B round was primarily an inside follow-on round by Mosaik, with the addition of our new partner, North American Capital. I cannot imagine a smoother or more enjoyable process than the one we experienced with these two partners. The diligence process was extensive but extremely reasonable.
What are the biggest challenges that you faced while raising capital?
We didn’t really face and challenges. Even the valuation was agreed upon fairly quickly. With the current climate being so favorable towards FinTechs and specifically payments, we were fortunate to be well-positioned for this round of funding.
What factors about your business led your investors to write the check?
The combination of Boost’s experienced management team, the company’s unique positioning in the industry, its impressive growth trend and the vast addressable market both domestically and internationally.
What are the milestones you plan to achieve in the next six months?
In the next six months, we plan on expanding our global footprint into several key markets abroad as well as expanding our marketing, product, support and business development teams in the U.S. and internationally.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Tenacity and creativity. New York is a very aggressive and competitive market, but any company that has a great offering, coupled with senior leaders who are willing to roll up their sleeves and get in the trenches, can be successful.
Where do you see the company going now over the near term?
We expect the company to continue to grow rapidly – in revenue, international presence, personnel, and significant partnerships with noteworthy brands.
What’s your favorite restaurant in the city?
It’s a two-way tie – Peter Luger and Canaletto – I simply cannot resist a great porterhouse or a delicious bowl of pasta.
