Burbank, a Cardiff-based payments technology company, has raised £5 million in a seed funding round. The investment was led by Mouro Capital, with additional backing from Anthemis (supported by Foxe Capital) and Portfolio Ventures. The company aims to enhance online transaction security by introducing a method that treats online payments as if they were made in person. With fraud concerns rising in digital payments, this development seeks to provide businesses with a more secure and efficient transaction process while maintaining user convenience.
Similar funding rounds in the payments industry have often focused on improving transaction security and efficiency. Other firms have previously attempted to reduce fraud risks associated with online payments, but many solutions required additional authentication steps or hardware. Unlike these approaches, Burbank’s system integrates directly into mobile applications, allowing consumers to verify payments using familiar tap-and-PIN authentication. This method aligns with existing payment behaviors, aiming to enhance transaction accuracy while minimizing processing costs for merchants.
How does Burbank’s payment authentication work?
Burbank’s payment verification system uses a tap-and-PIN method, which is incorporated into its Card-Present over Internet (CPoI) solution. This allows online transactions to be processed similarly to in-store payments, reducing fraud risks and chargebacks associated with Card-Not-Present transactions. By embedding this technology in mobile applications, Burbank offers a scalable solution that integrates with existing payment infrastructures on both iOS and Android devices.
Consumers can complete transactions by tapping their card on a mobile device and entering their PIN, making online payments function similarly to physical point-of-sale interactions. This adjustment enhances security while ensuring a familiar user experience. Merchants benefit from lower processing costs and reduced fraudulent activity, strengthening their payment systems.
How will the funding be used?
The investment will support the launch and international expansion of Burbank’s CPoI payment platform. The company plans to scale its operations and refine its technology to accommodate wider adoption across various industries.
“We are extremely excited to bring this evolution in payments to the world. The payments experience should be the same for everyone, regardless of channel,” said Justin Pike, founder and CEO of Burbank.
“CPoI is the first protocol that legally shifts liability away from the merchant. It’s a massively scalable approach, with global demand,” stated Ruth Foxe Blader, General Partner at Foxe Capital.
Burbank’s approach comes at a time when digital payments continue to evolve, with increasing emphasis on security and user convenience. Traditional online transactions often involve additional verification steps, leading to potential delays and abandoned purchases. By integrating a familiar payment method, the company aims to simplify authentication while maintaining stringent security standards for businesses and consumers alike.
Adoption of tap-and-PIN authentication in online payments represents a shift in how transactions are processed. Businesses could see reduced costs and improved fraud prevention, while consumers may experience a more seamless purchasing process. The success of this model will depend on its acceptance by financial institutions, merchants, and regulatory bodies. If widely implemented, it could influence future payment authentication standards, shaping the way digital transactions are conducted globally.
