Secure payments fintech EFTsure has revealed it has closed a $2 million series A capital raising round, led by Sydney venture capital firm Our Innovation Fund.
The startup has developed a platform that allows businesses to cross-check in real-time that the name of the payee matches the BSB and account numbers before the payment is made – a practice that Australian banks do not perform.
“Payments fraud is a growing area of cybercrime in Australia, with fast payment methods significantly increasing the risk of fraudulent activity. It’s critical to ensure a focus on both fast and secure payments as the new NPP platform is introduced,” said EFTsure co-founder Ian Mirels, citing that fraud is a $700 million problem within the Australian economy each year.
EFTsure’s technology also provides alerts based on compliance checks for ABN and GST status, among others.
The new capital will be used to scale up the business and prepare its technology for the New Payments Platform coming in October this year, which will allow real-time payments to take place in Australia for the first time.
OIF founding partner Geoff Levy said payments protection was in high demand globally.
“EFTsure is in a pivotal position to capitalise on the growing demand for this need given their deeply experienced team and their established client base… EFTsure are already seeing a large value proposition in what they’re doing to reduce the incidence and opportunity for fraud and error.”
Levy added the average cost of cybercrime for Australian businesses was around $276,000 and as a current and former business director himself, the anti-fraud technology was something that he could relate to.
“EFTsure is a necessary tool in a company’s toolbox in the fight against cybercrime,” he said.
The news comes at the same time as OIF’s investment into construction tech company Assignor, which wrapped up $3 million for its series A funding round.
OIF is an early-stage venture capital firm with a $50 million fund. The organisation is led by founding partners David Shein, who sold his company Com Tech in the 1990s for $1 billion to multinational Dimension Data; Levy, who was a former Investec Bank Australia chief executive; and former Deutsche Bank and CBA exec Jerry Stesel.