Crezco

High-Level Overview

Crezco is a UK-based fintech company founded in 2020 that provides an API for embedded payments, specializing in open banking-powered account-to-account (A2A) solutions for B2B bill payments, invoicing, and reconciliation[1][2][4][5]. It serves platforms, SMEs, freelancers, and growing businesses in sectors like e-commerce, consulting, real estate, and supply chain by solving high fees, slow processing, and manual reconciliation in traditional card-based payments through real-time, low-cost transfers, automated workflows, multi-currency support, and integrations with tools like Xero[1][2][6]. With over 10,000 active customers as of late 2023 and $18 million raised (including a $12 million Series A), Crezco demonstrates strong growth momentum, expanding its team from 25 to 45 and partnering with Xero to replace Wise for embedded payments[2][3][5].

Origin Story

Crezco was founded in 2020 by Ralph Rogge, previously at YouLend (a merchant funding startup), and Igor Pikovsky from Rogge Global Partners, a $60 billion bond fund[2][5]. The idea emerged from Rogge's experience working with thousands of small businesses, where he observed the persistent friction in B2B invoice payments compared to seamless consumer card checkouts, prompting a solution for cheaper, faster A2A payments without card network intermediaries[2]. Early traction included a £3 million seed round in 2021, followed by a $12 million Series A in 2023 from MMC Ventures and 13books, enabling product expansion and team growth amid rising open banking adoption in the UK[2][5].

Core Differentiators

• API-First Embedded Payments: A single, no-code API powers platforms for bill payments, payroll, expenses, recurring collections, payment links, and splits, with instant notifications and fraud detection, enabling seamless integration without leaving the user's product[2][4][6].
• Cost and Speed Advantages: Leverages open banking for real-time A2A transfers that bypass card fees (often 2-3%), supporting multi-currency cross-border payments and automating reconciliation with accounting software like Xero[1][2][6].
• Automation and Scalability: Handles invoicing, approvals, and real-time matching of payments to invoices, saving businesses 5+ hours weekly and reducing errors, ideal for SMEs scaling from startups to enterprises[1][3][6].
• Developer and User Experience: Simple integration (e.g., via Webpack, Next.js, Grafana in its stack), collaborative values, and partnerships like Xero enhance ease of use and ecosystem fit[2][3][4].

Role in the Broader Tech Landscape

Crezco rides the open banking wave in the UK and Europe, accelerated by PSD2 regulations mandating bank APIs for secure A2A payments, challenging Visa/Mastercard dominance in B2B where fees erode margins[1][2][5]. Timing aligns with post-pandemic digital transformation, rising e-commerce, and global supply chains demanding low-friction cross-border flows, while economic pressures favor cost-saving alternatives amid inflation[1][3]. It influences the ecosystem by empowering platforms (e.g., Xero integration reaching millions of SMEs) to embed payments natively, fostering fintech innovation, faster cashflow for businesses, and broader economic efficiency without legacy intermediaries[2][4][6].

Quick Take & Future Outlook

Crezco is poised to capture more of the $10 trillion+ global B2B payments market by scaling its API across Europe and beyond, leveraging Xero's reach and planned team expansion for payables automation like payroll[2][6]. Trends like real-time payments (e.g., UK's Faster Payments expansion) and AI-driven fraud/recognition will amplify its edge, potentially drawing acquisitions from accounting giants or banks seeking embedded finance. As open banking globalizes via standards like India's UPI or US FedNow, Crezco's influence could evolve from UK disruptor to cross-border enabler, simplifying B2B flows much like Stripe did for e-commerce—starting with the friction it was built to eliminate[1][2].