AIB invests €30m in Clune payments firm TransferMate
Partnership deal values Taxback Group's booming fintech at up to €300m
AIB has invested €30m in TransferMate in exchange for a small minority equity stake in the Kilkenny-based fintech company, the Sunday Independent has learned. The investment values the rapidly-growing international payments company at €250m to €300m, according to a source.
TransferMate - part of businessman Terry Clune's Taxback Group - enables companies to transfer money internationally more quickly and for substantially lower fees than standard bank transfers. The two have also agreed a strategic partnership focused on providing Irish businesses access to the global payments technology platform. TransferMate has already transferred over €10bn to more than 100 countries since 2010 and secured a worldwide network of valuable regulatory licenses.
TransferMate chief executive Clune said the deal, which is subject to Central Bank approval, was "a great example of how a leading bank and a fintech company can work together".
"Cross-border business- to-business payments can be complex, time-consuming and expensive," said Clune. "We aim to provide the most convenient and cost-effective way for businesses to move money around the globe. Business-to-business payments represent 98pc of the $138trn of currencies traded annually cross-border."
Clune said the investment would allow TransferMate to "expand our commercial teams across the US, Canada, Australia and Europe, whilst growing our head office, commercial and technology functions in Ireland".
TransferMate co-founder and chief financial officer Sinead Fitzmaurice said that they had "spent a significant amount of time and our own capital building our unique technology, infrastructure and global regulatory footprint". They were "immensely proud to announce our first banking collaboration in our home market," she said.
AIB managing director of wholesale, institutional and corporate banking Colin Hunt said the deal "demonstrated the bank's commitment to deploying its capital and expertise in support of leading enterprises such as TransferMate". "The investment is in line with AIB's strategic priority to increase the pace of innovation to serve changing customer needs by working with both dedicated internal teams and with external partners and startups," he said.
"We will work with TransferMate and other digitally innovative partners to continue to ensure AIB Business customers have access to some of the best digital banking capabilities in the world."
Sunday Indo Business