Last year, local fintech startup XUP Payments launched a platform they believe will change the way merchants bank. Now, the company's recent $3 million funding round is drawing in even more clients.
The company, co-founded by Craig Sobol, Chris May and Kyle Bridges, was born out of consulting agency Midtown Consulting Group, based in Charlotte and Atlanta.
The platform gives merchants the ability to manage acquiring transitions and accounts directly in a bank’s online banking system. Sobol said it offers omni-channel services, so a customer can start a transaction online and finish in-person with a banker, and vice versa.
"If you walk into a bank branch or call and say you need merchant services, generally there’s limited direct options for a merchant to apply themselves," he said. "What XUP does is sit between the bank and merchant to bring the customer experience back to the bank’s brand."
XUP closed its $3 million seed round, led by Cleveland-based KeyBank and Naples Fintech Ventures, this spring. Sobol said KeyBank is the first U.S. commercial banking institution to invest in the company.
"They got us off the ground and got us running, and it's been a huge liftoff," he said. "They've made a full investment in us, which means they give us real feedback on the roadmap, capabilities and what’s being brought to market."
Sobol added, "To have their confidence is a huge boost for us. It not only brings credibility to our hypothesis but shows we’re operating at scale."
He said the team plans to continue scaling XUP at a speed based on its clients' needs. Currently, the company is working to install its software with several banks across the country.
"We want to grow when our clients grow. Banks love the incentive-based model to grow when banks grow," Sobol said. "We think that comes from our consulting roots, and we see that as an asset. We’re not just putting software in, we’re solving issues."
