Payment Labs Raises $3.5M To Tackle Esports Payment Issues
Featured image: Microsoft Copilot
Payment Labs has announced the closing of a $3.5M seed round to simplify the complex payment processes in sports, esports and the creator economy. This is a move led by Aperture Venture Capital and joined by Capital Eleven, ESPMX, among other investors, as this fund will be used to bring in more customised solutions.
Payment Labs is a fintech company founded in 2020 in California that manages global payments in over 150 currencies and more than 180 countries, using a comprehensive API-driven platform for fast and secure payments, incorporating tax and regulatory compliance, tracking, reporting tools and multiple payment methods.
The investment round will be focusing on creating solutions for payments such as royalties, revenue share, and services that are not usually provided on traditional platforms. These decisions have been informed from lessons learned from the international nature of competitions, compliance and regulatory issues and the tracking of sometimes hundreds of individual payees among other issues. These lessons are what have directly translated into the work of Payment Labs’ work in esports and other industries. Successes have also been found in the elimination of similar pain points with frictionless solutions. This announcement and breakdown was made by Han Park, the CEO of Payment Labs.
Industry Wide Payment Issues In Esports
Payments have been a common issue in esports due to the large volume of transactions required from different countries and their financial regulations, which oftentimes come with 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 a matter of weeks after competitions end.
Credits: esportsinsider.com
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Written by Jeffrey Osei-Agyeman
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