The $22M Funding Surge: How Alternative Payments is Revolutionizing B2B Financial Workflows
2min read The B2B payments sector has long been a neglected frontier in fintech innovation, overshadowed by the rapid evolution of consumer-facing financial tools. However, Alternative Payments, a startup redefining how businesses manage financial workflows, has just secured $22 million in total funding through rounds led by MissionOG and Third Prime. This infusion of capital signals a turning point for industries such as IT services, managed service providers (MSPs), and blue-collar sectors, which have historically relied on outdated systems for accounts receivable and payment processing.
At the core of Alternative Payments’ value proposition is its autonomous payment infrastructure, designed to automate invoicing, reconciliation, and cross-border transactions. The platform’s integration with enterprise resource planning (ERP) systems like ConnectWise and Autotask eliminates manual processes, reducing days sales outstanding (DSO) by 40–50% for customers. This efficiency has already driven a 500% surge in transaction volume since 2024, with the company now processing over $500 million annually across 600 clients.
The Problem: A $15 Trillion Market Overdue for Innovation
CEO Baxter Lanius, formerly of Apollo Global Management, identifies a stark contrast between the $15 trillion B2B services market and the consumer fintech sector. While apps like Venmo and PayPal have modernized peer-to-peer transactions, businesses continue wrestling with fragmented systems, paper-based invoicing, and delayed settlements. For MSPs and IT providers, manual financial tasks consume time and resources that could be redirected to client growth. Alternative Payments’ platform addresses this by embedding automated financing options, such as “B2B buy now, pay later” (BNPL), and advanced analytics to optimize cash flow.
The Funding Play: Scaling Automation and Embedded Finance
The $22 million funding—spanning seed and Series A rounds—will fuel three priorities:
1. Global Market Expansion: Targeting underserved regions with high B2B transaction volumes.
2. Deepening Automation: Enhancing AI-driven processes like auto-reconciliation and cross-border settlements.
3. Embedded Financing Solutions: Scaling BNPL options and flexible payment terms to boost client retention.
This strategic focus aligns with a market projected to exceed $30 trillion by 2025, per recent estimates. Meanwhile, Alternative Payments’ 500% YoY transaction growth outpaces even the fastest-growing fintech peers, such as Stripe or Adyen, which typically see 20–30% annual expansion in mature markets.
The Competitive Edge: SaaS Model and Integration Ecosystem
The company’s SaaS model charges monthly fees plus transaction-based rates for credit card, ACH, and BNPL services, creating recurring revenue streams. Its partnership with SecOps Cloud Platform further automates tasks like notifications and collections, reducing operational friction for clients. For example, an MSP using Alternative Payments can now offer clients flexible payment plans while receiving upfront settlements, directly addressing a pain point that costs businesses $1.3 trillion annually in delayed cash flow.
Risks and Considerations
While the opportunity is vast, challenges remain. Regulatory hurdles in cross-border payments, cybersecurity risks, and competition from legacy providers like FIS (FIS) or Worldpay (WP) require vigilance. However, Alternative Payments’ focus on niche verticals—where 80% of businesses still use manual invoicing—creates a defensible moat.
Conclusion: A Pivotal Moment for B2B Fintech
Alternative Payments stands at the intersection of automation and financial innovation, tackling a market ripe for disruption. With a 500% transaction growth rate, a platform that cuts DSO by nearly half, and a mission to unlock $15 trillion in untapped B2B efficiency gains, this startup is well-positioned to capitalize on its $22 million funding.
Investors should note the network effects at play: as more businesses adopt the platform, the data-driven insights and integrated ecosystem become harder to replicate. With a customer base expanding at 33% quarterly growth and a runway to scale globally, Alternative Payments isn’t just modernizing payments—it’s redefining what’s possible in B2B finance.
This funding round isn’t just a milestone; it’s the catalyst for a new era in enterprise financial workflows.
