Our Investment in Pagos
By Dave Matter and Sugam Sarin, Point72 Ventures, Financial Services
Point72 Ventures is excited to announce our investment in Pagos, a remote-first startup building intelligent payment infrastructure for commerce. We co-led the round alongside Underscore Ventures with participation from other prominent investors and visionary executives. We are excited and honored to welcome Klas, Albert, Dan, and the rest of the Pagos team to the Point72 Ventures Family!
At Point72 Ventures, we’ve always been active investors in financial infrastructure, and we love backing individuals with great founder market fit. Payments is an industry where domain expertise and relationships are incredibly important. The Pagos team possesses both given their experiences building Braintree from its early days to its acquisition by PayPal and beyond. After decades of payments experience working with some of the largest merchants in the world, the team had great visibility into the most complex and prevalent pain points merchants face when it comes to their payments infrastructure. Those problems need to be solved and that is why they started Pagos.
From the view of a consumer, payments are as simple as providing your card information. However, a payment transaction on the back-end is very complex. Growing businesses are faced with a variety of financial institutions, fraud & risk vendors, payment providers, technologies, regulations, and costs.
More consumers and businesses are buying products online with greater frequency than ever before. Global E-commerce is expected to exceed $5.0T in transaction volume in 2021, supercharged by Covid. This surge in digital commerce can provide great benefits for end-customers, but comes with higher expectations for a seamless payment experience. This puts a lot of pressure on the business to deliver. On top of managing existing complex payment systems, businesses now have to support new payment solutions (BNPL, wallets, QR Codes, credit, debit, etc.) for customers globally. As this complexity increases, merchants need help understanding payments flow and their payments infrastructure more broadly to optimize for cost, performance, and scale — this is where Pagos comes in.
Pagos delivers to its customers a data and insight SaaS platform tailored to drive better performance and optimization of existing payments infrastructure. The Pagos platform provides:
- Awareness to understand their payment stack & data via visualization, analytics, and benchmarking
- Advice on how to improve payment performance by monitoring data, detecting changes, and predicting patterns
- Actions that can be taken to make the necessary optimizations the customer desires
We’re honored to be working with the Pagos team on this journey and are very excited for the future ahead as they help businesses understand and control their payments infrastructure!
—
This is not an advertisement nor an offer to sell nor a solicitation of an offer to invest in any entity or other investment vehicle. The information herein is not intended to be used as a guide to investing or as a source of any specific investment recommendation, and it makes no implied or express recommendation concerning the suitability of an investment for any particular investor. The opinions, projections and other forward-looking statements are based on assumptions that the authors’ believe to be reasonable but are subject to a wide range of risks and uncertainties, and, therefore, actual outcomes and future events may differ materially from those expressed or implied by such statements. Point72 Private Investments, LLC or an affiliate may seek to invest in one or more of the companies discussed herein.
