London’s OakNorth invests £1m in Southampton-based payment tech firm

Entrepreneur bank OakNorth has invested seven figures in a payment services provider based in Southampton.

The London-based bank provided NetPay with a £1m working capital facility, which the firm’s co-founder, Carl Churchill, said will be used to finance its daily operations and “continue pursuing our ambitious growth plans”.

NetPay provides credit and debit card payment processing through face-to-face, online and over-the-phone payment services.

Its business is separated into two core segments: NetPay Merchant Services, which offers payment processing solutions; and Technologi, a software provider supporting global banks and other payments businesses through its Revolution platform.

NetPay’s technology is being rolled out to support 14 countries and eight languages, following a recent string of contract wins.

Managing director Carl Churchill, who established the business in 2012 with Nicole Churchill, said: “Since our founding five years ago, we have seen the payments market in the UK evolve rapidly, with technologies such as contactless and mobile payments becoming more mainstream.

“Cards are now the most popular payment method in the nation with cards and contactless payments overtaking cash in retail for the first time during 2017.

He added: “We want to help every business to gain access to these payment services through our technology and in turn, open opportunities to generate revenue and improve their cash flow.”

OakNorth debt finance director Adam Agius said: “NetPay is an ambitious and determined business with incredibly experienced founders and management team.

“The business has won several technology-related awards since its founding in 2012 and is one of the few independent payments providers that builds, owns and operates its own technology, including its own payment gateway.”

Adam continued: “Whilst it predominantly services SMEs via NetPay Merchant Service through strategic partners, it has also been awarded multi-year contracts by major acquiring banks and payments businesses for the design, build and delivery of the Revolution platform, which is a testament to the value of the IP.

“As the number of card transactions in the UK continues to rise, NetPay is in a prime position to continue growing its influence and importance in the market.”