Atlanta-based Rainforest, a payments-as-a-service platform (PaaS), has successfully raised $8.5 million in a seed funding round led by Accel. The company, founded in 2022 by CEO Joshua Silver, focuses on helping software companies incorporate financial services and payments into their offerings. Unlike other competitors in the market, Rainforest specifically caters to software platforms, providing low-code integration technology, risk management, merchant onboarding, and compliance services.
Key Takeaway
Rainforest secures $8.5 million in funding to provide software platforms with a payments-as-a-service solution that simplifies the integration of financial services. The company’s tailored approach, focusing specifically on software platforms, sets it apart from competitors and has led to rapid growth in its client base.
The Growing Demand for Embedded Financial Services
In today’s business landscape, many companies are looking to embed fintech and payments into their products or services to enhance their revenue streams. However, most companies do not want to become full-fledged fintech firms due to the complexities and regulations involved. Rainforest aims to bridge this gap by offering a solution tailored for software platforms that want to add payments without the burden of becoming a licensed fintech company.
Rainforest’s Unique Approach and Market Advantage
Rainforest takes a unique approach by building its technology specifically for software platforms, rather than retrofitting existing solutions designed for merchants. The company provides seamless integration, true merchant portability, and high-touch service, all while handling risk management and compliance on behalf of its software platform partners.
As a result of its focused strategy, Rainforest has experienced rapid growth, securing client commitments representing over $500 million in processing volume. By catering to software platforms in various industries, such as healthcare, membership management, trucking, nonprofit, and retail, Rainforest has gained a competitive edge in the market.
Expansion Plans and Strategic Partnerships
With the recent funding, Rainforest plans to invest in product development to help software businesses generate revenue, improve customer retention, and enable seamless payment acceptance. The company also aims to expand into new industries and broaden its product offering by partnering with banking-as-a-service and lending-as-a-service companies.
Furthermore, Rainforest differentiates itself in terms of data portability. Unlike many processors that lock up data, Rainforest offers contractual portability, allowing clients to retain ownership of their data and access it at any time. This transparency and customer-centric approach have been key factors in Rainforest’s growing clientele and positive reputation within the industry.
