The news: UK-based open banking startup TrueLayer raised $130 million, giving it a $1 billion valuation, per TechCrunch.
Here’s how it works: TrueLayer gives developers technology to access a range of open banking services, such as account holder verification and payment initiation.
Its clients include neobanks, crypto startups, and ecommerce companies, and TrueLayer says it enables millions of consumers’ open banking transactions. It will use the funding to extend its payment network to more regions.
How did it reach unicorn status? TrueLayer has helped make financial executives more receptive to open banking, which likely won over investors.
The bigger picture: Incumbents increasingly see the potential of open banking and are becoming the biggest force in the space, likely pushing TrueLayer to double down on its own expansion to avoid losing market share.
Want more? Check out this article to get a deeper dive into the state of open banking implementation across Europe.
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