One of these is Y Combinator alum Fintoc, a B2B fintech startup that has raised a $7 million Series A round of funding to consolidate its presence in its home country, Chile, and in Mexico, where it expanded one year ago. Fintoc's product is an API that lets online businesses accept instant payments coming directly from the customer's bank account. Known as accounts to accounts, or A2A, this method offers an alternative to credit card transactions, with fewer intermediaries. For end users, A2A can be as frictionless as an online credit card payment. Instead of entering card details, they can just pick their bank and securely facilitate their bank credentials. But the main selling point is to businesses, which pay a lower commission than the usual credit card transaction fees. Many countries now facilitate A2A, which has created tailwinds for open banking companies such as Plaid, Visa-owned Tink, TrueLayer and Volt. More generalist fintech players like Adyen and Stripe have also...
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