Payments start-up Trustap has raised $3.4m in seed funding to boost its growth and develop new features on its transaction service.

The funding round was lead by MiddleGame Ventures with co-investment from Act and Atlantic Bridge. This follows from initial funding from early backers, such as Stripe investor Liam Casey.

Trustap said the latest funding will help with the roll out of new features and extend marketplace partnerships globally to meet increasing customer demand.

The start-up’s platform combines payments (powered by Stripe) with a transaction management system. When a purchase is made with Trustap, the buyer’s money is held in a safe hold account until all transaction milestones are met.

“This fundraise is an important step for Trustap and will enable us to leverage the network and experience of our investor base to accelerate our growth in 2022 and beyond,” Trustap founder Conor Lyden said.

Trustap said that online buyers are reluctant to transact with sellers unknown to them, despite the global rise in e-commerce and digital payments. The start-up said a lack of trust between buyers and sellers can prevent successful transactions.

The former Start-up of the Week said it aims to be a transparent platform for buyers and sellers. The buyer’s funds are kept secure until they are happy with the purchase, while the seller gets transparency over where funds are being sent and the buyer’s identity.

“The reality is that the money is only ever half of any transaction between two parties,” Lyden said. “The other half is usually a product that has to be delivered or a service that has to be completed.

“Rather than just holding the money, we manage the entire transaction from start to finish to ensure each milestone is successfully completed,” Lyden added.

The Cork-based company has seen rapid growth over the last year, as it more than tripled its workforce and is currently live in more than 40 countries worldwide. It also partnered with large marketplaces such as Mudah, a massive marketplace in Malaysia.

“The company is well positioned to play an integral role in unlocking friction around marketplace transactions by providing confidence to both sellers and buyers,” Middlegame Ventures co-founder Patrick Pinschmidt said.

“In competitive online markets with thin margins, the Trustap platform differentiates itself by reducing the incidence of abandoned transactions and offering revenue opportunities from successful transactions, as well as better data tools for business customers,” Pinschmidt added.

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