Founder: Michael Mueller
Description: Headquartered in London, Form3 was founded in 2016, by payment technology leaders who were customers of poor technology companies. Form3’s annual recurring revenue in 2021 grew by 233%. In September 2021 Form3 raised a Series C round investment of $160 million led by Goldman Sachs Asset Management. With this investment, the total funds raised by Form3 accounts for $220 million. With a strong position in the U.K. and Europe, Form3 is now preparing for wider international expansion, primarily focusing on the US.
Banks struggle with payments infrastructure due to customisation, expensive on-premise technology, point-to-point connectivity relying on multiple systems and yearly scheme change management requirements. Banks must ensure compliance to the new ISO20022 messaging standard, resulting in costly process and technology changes. Form3 identified that tier one banks frequently said that their gateways were literally creaking under the weight of their customers’ payments needs. This is due to an increased number of payments moving online, as society becomes cashless, and the sheer increase of transactions driven by the COVID-19 pandemic in 2020 and 2021. With this challenge, Form3 saw the opportunity to provide a managed payment service which uses the latest technology to revolutionise the connection between banks and payment schemes and infrastructure.
Form3 have big plans for 2022, including the launch of five new products. Firstly, our data proposition product will be launched to allow banks to run all of their inbound and outbound payments through a tailored solution to identify and prevent APP fraud. As we deal with vast amounts of data, this product will use Artificial Intelligence to detect fraudulent activity in real-time payments and money mule accounts, to save customers’ money and to also protect their reputation.
Next up is our cross-border FX payments product, which has been launched with Goldman Sachs Transaction Banking. By providing improvements in pricing and transparency, and removing the need for extensive correspondent banking networks, we can enable customers to grow their international payment capabilities and create new revenue streams.
To compliment this our SWIFT offering is the first of its kind providing simple, direct access to SWIFT via a single API. Reducing the complexity and investment traditionally associated with getting started on SWIFT and freeing up capacity to grow your business.
We continue our commitment to the US with our upcoming launch of Real Time Payments via The Clearing House. This in conjunction with our acceptance onto the FedNow pilot program positions us perfectly as thousands of banks begin to make the move to real-time.
Finally, with financial resilience being top of the agenda for both banks and regulators worldwide the introduction of our multi-cloud solution will see banks being able to take advantage of real time payment processing across multiple public cloud platforms. This removes the need to rely on a single provider for their mission critical payment systems. We launch these products in what is an interesting time in fintech, as the financial sector continues to come out of the COVID-19 era.
Alongside the hard work the team has done on our products, we also attended and had success at major trade shows. We had a strong presence at both EBA Day and Money 20/20, where we met with customers, prospects, and the media, to fully promote Form3 as the leading cloud-native payment provider. Additionally, we have received recognition through a number of tier one industry awards, including our most recent win of ‘Payments Innovation of the Year’ at the FStech Awards 2022.
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