Payments provider Rainforest has raised $20 million to expand its embedded payments offering.
The Atlanta-based company said it will use funds from the Series A round, led by Matrix Partners, to advance its technology and product offerings, expand its platform success team and launch new go-to-market initiatives.
“Rainforest helps software platforms grow revenue by embedding payments into their products, without introducing any risk or compliance complexities,” the company said in a Wednesday (June 26) news release. “The company has achieved a stronghold amongst software companies processing $50 million — $2 billion in annual payments, a previously underserved segment.”
Since its seed round in 2023, Rainforest has increased its payment volume 17-fold, the release said, signing on dozens of platforms in sectors including trucking and logistics, healthcare, specialty retail and professional services.
Rainforest founder and CEO Joshua Silver said the company is filling a need for mid-market firms created with Stripe shifting its focus to larger enterprises.
“These mid-market platforms tell us that, prior to Rainforest, it was impossible to find a payment provider that offers a full package of modern technology, platform-friendly commercials, and high-touch support,” said Silver.
Elsewhere in the small and medium-sized business (SMB) and embedded payments space, recent research by PYMNTS Intelligence finds that while lenders across global economies are offering embedded lending, the data shows that the typical lender serving SMBs has not fully embraced its potential.
“For example, nearly half of lenders serving SMBs have not entered this space,” PYMNTS wrote earlier this month.
“Roughly 1 in 5 lenders show high interest in launching new embedded lending products in the next two years. One key issue for lenders is a lack of external platform integrations, such as marketplaces or in-store point-of-sale systems.”
The report, “Embedded Lending: From the Lender’s Perspective,” commissioned by Visa and designed and conducted by PYMNTS Intelligence, found that lenders’ tepid interest in offering embedded lending options is out of sync with consumer and SMB interest in switching to providers that offer them.
“Among lenders that serve consumers, 22% show high interest in offering new embedded lending products in the next two years,” PYMNTS wrote. “Another 27% are somewhat interested. The trend is similar for lenders lending to SMBs, as 22% express high interest and 29% moderate interest.”