Finaro (the
trading name
A trade name, trading name, or business name is a pseudonym used by companies that do not operate under their registered company name. The term for this type of alternative name is fictitious business name. Registering the fictitious name with ...
of Credorax, Inc.), is an
Israel
Israel, officially the State of Israel, is a country in West Asia. It Borders of Israel, shares borders with Lebanon to the north, Syria to the north-east, Jordan to the east, Egypt to the south-west, and the Mediterranean Sea to the west. Isr ...
-based online merchant
acquiring bank
An acquiring bank (also known simply as an acquirer) is a bank or financial institution that processes credit or debit card payments on behalf of a merchant. The acquirer allows merchants to accept credit card payments from card issuers such as ...
and
payment service provider
A payment service provider (PSP) is a third-party company that allows businesses to accept electronic payments, such as credit card and debit card payments. PSPs act as intermediaries between those who make payments, i.e. consumers, and those who ...
(PSP).
Established in 2007 by Benny Nachman, the company operates in the
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
,
United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, and
China
China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
.
In October 2023 Finaro was acquired by
Shift4 and now operates under the Shift4 brand name.
History
Credorax was founded as a
financial technology
Financial technology (abbreviated as fintech) refers to the application of innovative technologies to products and services in the financial industry. This broad term encompasses a wide array of technological advancements in financial services, ...
startup
A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship includes all new businesses including self-employment and businesses that do not intend to ...
in 2007, in
Southborough Massachusetts
Massachusetts ( ; ), officially the Commonwealth of Massachusetts, is a U.S. state, state in the New England region of the Northeastern United States. It borders the Atlantic Ocean and the Gulf of Maine to its east, Connecticut and Rhode ...
by Benny Nachman.
From its start, the company launched and developed as an online acquiring bank acting as an intermediary between
issuing bank
An issuing bank is a bank that offers card association branded payment cards directly to consumers, such as credit cards, debit cards, contactless devices such as key fobs as well as prepaid cards. The name is derived from the practice of issuing ...
s or
payment service provider
A payment service provider (PSP) is a third-party company that allows businesses to accept electronic payments, such as credit card and debit card payments. PSPs act as intermediaries between those who make payments, i.e. consumers, and those who ...
s and
e-commerce
E-commerce (electronic commerce) refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile co ...
merchants.
The initial funding was provided by Blumberg Capital.
By 2014, the company received nearly $130 million in venture funding from Blumberg Capital, FTV capital and other investment firms.
In 2010, the company was licensed to operate under the EU
Payment Services Directive
The Revised Payment Services Directive (PSD2, Directive (EU) 2015/2366, which replaced the Payment Services Directive (PSD), Directive 2007/64/EC) is an EU Directive, administered by the European Commission (Directorate General Internal Market) t ...
(PSD). In 2014, it obtained commercial banking license in
Japan
Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
and in 2015, the company received a commercial banking license in Malta allowing it to operate within the European Union.
Processing a volume of over $4.3 Billion in 2019.
In March 2022, Finaro announced its acquisition by US payments company Shift4 in a deal valued at USD 575 million. The deal took some time to get approved by the required institutions, after which the acquisition was completed on October 26, 2023.
On November 13, 2023 Finaro announced that it was rebranding as Shift4 and was operating under the Shift4 brand name from that day onwards.
Services
In technological terms, Finaro is both an acquiring merchant bank and a payment processing provider (PSP), via its
payment gateway
A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payment processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. The ...
technology, Source, which facilitates multi-channel payment processing, fraud and risk management services.
According to a Nilson Report, in 2019 Credorax introduced bank account facilities for its clients.
References
2023 mergers and acquisitions
Payment service providers
Merchant services
Financial technology companies
Financial services companies established in 2007
Financial software companies
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