Plastiq, a payments technology company, announced a $6 million round of Series A financing.
The financing round, announced Feb. 28, was led by venture capital firms Atlas Venture and Flybridge Capital Partners. Earlier investors, including NextView Ventures and Greenoaks Capital Management, also participated alongside angle investors such as Harvey Golub, American Express’ former chairman and CEO.
Plastiq’s technology allows consumers to use credit cards to pay tuition, rent, taxes and make other purchases with merchants that have been historically reluctant to handle credit card payments. Plastiq charges a transaction fee to consumers, not merchants. Its partners include card networks, country clubs and a number of universities.
Plastiq markets its service to consumers through emails—primarily from participating merchants—who do not pay a fee to participate.
The merchants add a payment button to their websites. Merchants can also access an online portal to download and run reports. The benefit for consumers is faster cash flow, since they don’t have to wait for checks to clear, the company says.
