Fintech company Payment Labs has announced the closing of a $3.25m (~£2.41m) oversubscribed seed round to simplify complex payment processes across sports, esports, and the creator economy.
Led by Aperture Venture Capital and joined by Capital Eleven, ESPMX, and other investors, the funds will be used to bring more customised solutions.
Founded in 2020 in California, Payment Labs manages global payments in over 150 currencies and more than 180 countries, using a comprehensive API-driven platform for fast and secure payments that also incorporates tax and regulatory compliance, tracking, reporting tools, and multiple payment methods.
According to a release, the investment round will focus on creating solutions for payments such as royalties, revenue share, and services that are not typically provided by traditional platforms.
“In esports, I became very familiar with the international nature of competitions, the compliance and regulatory issues that those create, the need to track down at times hundreds of individual payees, and more,” Han Park, CEO of Payment Labs, commented on the announcement.
“Those lessons translated directly to Payment Labs’ work in sports and other industries, where we’ve found success in eliminating similar pain points with frictionless solutions. Now, we’re looking forward to expanding those offerings and scaling our team to continue to make payments faster, easier, and compliant.”
Industry Wide Payment Issues in Esports
Payments have always been a common issue in the esports space due to the large volume of transactions required and the different financial regulations of each country, often leading to delays.
The company has processed more than $50m in transactions, with customers ranging from Microsoft, SEGA, X Games, and EVO, who were able to distribute prize pools within weeks after the competition concludes.
The company has recently hired Paul Brewer as Executive Vice President of Sales & Sports Partnerships, bringing over two decades of experience across traditional sports and media, including ESL.
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