Lynk has emerged from stealth, this month announcing the general availability of its branded payment solution.
The Vancouver-based company provides merchants an alternative to costly credit card processing fees while powering customer loyalty programs that drive revenue, according to a statement. Its platform enables marketplaces to own their own payment ecosystem without upfront fees, large cash reserves, or the cost of hiring an engineering team to build.
As part of its launch, Lynk raised $3 million in seed capital. Investors included Samsung Next, Plug and Play, Tribe Capital, Simplex Trading, N49P and others.
“Credit card fees and building customer loyalty are two of the biggest challenges for small business owners,” believes Lynk CEO Nabi Awada. “In the current payment systems, they are at the mercy of credit card providers, banks, payment networks and aggregators that all pile on fees and control when payments are funded.”
Lynk’s closed loop platform is “specifically designed for startups, small- to medium-sized marketplace and gig economy companies that find themselves burdened with high credit card processing fees.” Traditional fees range from 3-5% per transaction. Lynk promises 1% or less.
“Lynk’s branded payment solution enables businesses to own the payment experience—the same way Starbucks owns their payment ecosystem with their branded wallet, which costs millions of dollars to develop,” explains Awada. “With Lynk, setup can be completed in days, not weeks, without upfront costs while still being fully compliant.”
Samsung Next invested in Lynk “because its solution enables companies to focus more on developing innovative products and services, and less on overcoming financial and regulatory obstacles.”
“We think Lynk’s end-to-end platform is in a good position to grow by helping companies start and manage their businesses without high costs and time-consuming operational challenges,” stated Samsung Next venture capitalist Lizzy Goldman.