Forward, a US-based startup providing payment services for software companies, has successfully raised $16 million in a seed funding round.
The round was led by Commerce Ventures, Elefund, and Fiserv. The startup intends to utilize the financing to address the growing demand from software partners, while also applying artificial intelligence to enhance risk management in payments.
“Most software companies excel at the technical aspects but struggle to meet their business objectives,” said founder and CEO Brandon Lloyd. “We believe that many software companies offering ‘integrated payments’ should be generating more revenue from these products, and Forward is dedicated to making that happen.”
For Fiserv, this investment aligns with its goals to deepen its presence in the embedded finance sector, a strategic shift that was announced in October last year. In addition to financing and technology support, Fiserv (NYSE: FI) plans to leverage Forward’s capabilities to broaden and enhance the payment services it offers to Independent Software Vendors (ISVs), including managed PayFac services.
“With our expansion into the managed PayFac space, we are simplifying access to payment services for our clients, enabling them to go to market more rapidly,” stated Jon Halpern, SVP and head of ISV at Fiserv. “Together, Fiserv and Forward are advancing the industry into the future, committed to enhancing the ISV experience.”
A decade ago, fewer than 10% of credit and debit card transactions were integrated with software. Analysts at JPMorgan Chase now predict that the share of software in the payments market will reach 50% in the U.S. by 2030.
“We want this significant transformation in the industry to empower software companies,” added founder and CTO Derek Victory. “Payments should seamlessly integrate with their brand, rather than appearing as a disconnected element.”