Yapily raises $ 51 million for its open banking API with a focus on infrastructure – TechCrunch
Startup FinTech Yapily raised a $ 51 million Series B financing round led by Sapphire companies. The company worked on a single, unified open banking API for several European markets. Developers can take advantage of this programming interface to interact with third-party bank accounts directly from their own products.
“The main difference between us and most of the space players is our focus on infrastructure,” founder and CEO Stefano Vaccino told me. Unlike Tink or TrueLayer, Yapily works in the background. You never see a Yapily logo anywhere, and the company does not provide any front-end interface.
Another difference is that Yapily focuses exclusively on API integrations. Due to recent regulatory changes in Europe (PSD2), banks must now offer official APIs to integrate with third-party services. While some still don’t offer an API, many are now complying with the rules.
By focusing on official APIs, Yapily can deliver a faster and more reliable experience. Other startups working on unified open banking APIs rely on a mix of official APIs, screenshot APIs, and private APIs. Screen scraping can be particularly slow, and private APIs sometimes stop working overnight.
In terms of coverage, Yapily supports more than 1,500 banks in eight different countries. “We have 90-99% coverage in the UK, France, Spain, Germany, Ireland, Austria, Italy and the Netherlands,” Vaccino said. You can see the full list of banks on this page. According to Vaccino, only Tink has a similar level of coverage in Europe.
You can use Yapily’s API for several different purposes. For example, the API allows you to check a bank account balance, verify the name of the account holder, and retrieve the last two years of transactions.
But the startup has also noticed that more and more customers are relying on open banking to make payments from a bank account. Compared to card payments, account-to-account payments are cheaper. Cards also expire, resulting in an unsubscribe rate. Yapily’s API can be used for single payments, international payments, bulk payments, and recurring payments.
With today’s round table, the company plans to expand its commercial presence across Europe. In addition to UK, Germany and Italy, Yapily will be hiring new team members focused on France and Spain.
The startup will also build integrations with banks in new markets in Northern Europe and the Baltic States, then beyond Europe. “At the start of next year, we will be looking at Latin America and in particular Brazil,” Vaccino said. Brazilian banks already have many open banking APIs.
At present, Yapily has around 100 clients, such as American Express, QuickBooks, Bux, Vivid Money, Volt, and Moneyfarm. By focusing on the infrastructure layer, other fintech startups are taking advantage of Yapily to build applications on top of the startup’s API. It’s an interesting marketing strategy and it seems to be working well.