In a challenging time for young fintechs, it's vital to find revenue as quickly and easily as possible. Mick Oppy says having a lot of prospects in one place is a big help.
"As big as banking is in the U.S, it's still extremely relational," said Oppy, CEO of Neural Payments, a P2P transfer company. "You can't just send an email or do a campaign to generate a conversation."
Neural was part of the Demo Day, the conclusion of the most recent FIS Fintech Accelerator program, which helps payment technology developers start or expand their companies through mentoring, training and connections to industry partners. Payment companies that support shared development say accelerators enable burgeoning companies to learn recession-survival skills and connect with partners.
"The current challenges in the global economy are putting significant pressure on startups, social enterprises and small businesses, which will struggle to survive without adequate support, said Brian O'Malley, head of sustainability at Adyen, which is expanding its accelerator program. "Accelerator programs have a critical role to play here, because mentorship and capital have potential to make a real difference to a business' ambition."
Neural Payments was founded in 2019, and Oppy said it began to offer its transfer app on a wide scale in 2021. Neural in 2022 raised about $8 million in Series A funding from Mendon Venture Partners and other investors. It also raised an undisclosed amount from FIS Venture Partners, which operates the FIS Fintech Accelerator.
Beyond access to venture capital, the social aspect of the accelerator program allowed Neural to engage with financial technology professionals from FIS and other companies.
"It was critical to have contact with all of those professionals," Oppy said. "I couldn't tell you how many leads I had in front of me, but I generated more than enough work for our sales team to follow."
Neural, which positions itself as an alternative to the bank-led Zelle P2P service, will use these leads and capital to chart its next steps. One goal is to add financial services on top of transfers.
"Our engine can do more than P2P, and we're looking to jump-start conversations around the next product and the next use cases," Oppy said.
Other companies in FIS' accelerator included Connect Earth, a green banking fintech; Equipifi, a buy now/pay later lender; Sardine, an ACH money movement and crypto risk company; and Sygno, a fraud monitoring firm; among others.
The 16-week program took place at FIS' development center in Little Rock, Arkansas, with the Demo Day at FIS' offices in Jacksonville, Florida. There's also a virtual demo day and a mix of in-person and remote programs.
This year's program took place amid a challenging environment for the fintechs and the industry as a whole. Many technology companies have seen their
"As we entered the second half of 2022, valuations have put pressure on fintech capital," said Elaine Duff, senior vice president of FIS Impact Ventures.
The accelerator is considering the macroeconomic environment when working with new payment technology companies. The mentorship and instruction includes tips on how to navigate an economic downturn and respond to a more difficult environment for fundraising for firms that were mostly created after the 2008 financial crisis.
"Capital raising is more challenging, so we spend more time helping the firms understand their burn rate and other factors that can impact their cash position," Duff said. "It's a different market and we want to guide the firms to success."
Other firms are also updating their programs for
Accenture is operating Fintech Lab New York. The program is designed to help early-stage technology companies connect with financial services firms and venture capital investors in a centralized location to speed the companies' launch. And TechStars New York recently operated a 13-week program for developers in November, in which Collectiv, a London-based group payments app provider, participated.
In an
The Dutch payment technology company and processor Adyen is launching four accelerator programs in 2023 following the 2022 Europe/Middle East/Africa edition. The new programs will be in Chicago, Amsterdam, São Paulo, Amsterdam and Dubai.
The new accelerators come as Adyen strategies its own expansion, adding
"These locations were chosen for their wealth of budding social enterprises and the importance of the local markets to Adyen's international growth," O'Malley said. "An accelerator's impact could help firms internationalize sales, further product development or improve sustainability."
