Terry Clune, co-founder and CEO, TransferMate.
Dutch banking group ING acquires a minority stake in TransferMate for €21 million
ING invests in Kilkenny-based fintech TransferMate, acquiring a small minority stake for equity backing of €21 million.
Amsterdam-headquartered banking giant ING has over 51,000 employees offering banking services to 37.4 million Retail and Wholesale Banking customers in over 40 countries.
ING took over Barings in 1995 after the 200-year-old investment bank was bankrupted by derivatives trader Nick Leeson.
The deal values the Kilkenny fintech at €350 million. On top of the recent €30 million investment from AIB, it brings the total Series A investment to €51 million in the last eight months.
The ING deal sees TransferMate’s value rise 18 per cent compared to where the AIB deal valued it just eight months ago.
A strategic pan-European partnership
TransferMate provides a unified technology platform, that integrates with accountancy software, to allow corporate clients to transfer money internationally more quickly and for lower fees than standard international bank transfers by using its global network of domestic bank accounts, which greatly improves working capital, and eliminates administration for companies.Transfermate holds an extensive network of payment licences across the world, including in all 50 US states.
“This investment and partnership with fintech TransferMate adds to ING’s capability to help customers by saving time and money for international payments,” explained Evelien Witlox, global head of payments and cards at ING.
As part of the deal TransferMate and ING have agreed to a strategic pan-European partnership, which will see TransferMate services offered as payment processing option to all SME and corporate clients of the bank from 2019, potentially reducing international payments costs and improving cash flow for ING business customers who send or collect funds cross-border.
“ING is a frontrunner in innovation, and TransferMate is delighted to be working with one of the most innovative banks in the world. In addition to collaborating with ING, our investment will also focus on expansion of TransferMate into Asia Pacific and we look forward to continuing to execute on our global expansion plans,” said Sinead Fitzmaurice, co-founder and chief financial officer of TransferMate.
“ING is a global leader in innovation and digital banking,” said TransferMate co-founder and chief executive Terry Clune. “TransferMate has built a unique technology platform and we are delighted to welcome ING as an investor and partner.”
The investment is expected to close in Q3 2018, subject to final documentation and regulatory approval.
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