Marketplace transaction service Trustap has raised $5.5 million in a Series A funding round led by TX Ventures, which it says it will use to leverage recent partnerships and introduce new product features.

Ireland-based Trustap acts as a merchant of record for marketplaces, managing payments, logistics and customer support on their behalf.

It describes itself as “a secure payment gateway that allows you to transact without the risk of being scammed … Our Escrow-Style payment solution was designed to cater to the needs of both online and face-to-face users, providing complete peace of mind each time they engage in a transaction.”

Using Stripe’s secure payment technology, Trustap keeps the buyer’s money in an account until all the transaction milestones are met and the complaints period has elapsed. The money is then released to the seller.

“Users of these platforms can pay and ship to each other safely and the marketplaces themselves can offer these secure transactions without having to do any of the technical heavy lifting on their end,” according to the company.

Welcoming “new investors to our cap table who bring with them a wealth of experience in our core markets,” Trustap CEO Conor Lyden commented: “Our plan is to invest in our GTM [go to market] to ensure we make the most of some of the recent partnerships we have established. We’ll also look at adding further product features to cater for the wide range of use cases we deal with across both c-to-c and b-to-b marketplaces.”

“We have ambitious plans to become the market leader in trusted transactions worldwide, ensuring all users on Trustap-powered marketplaces can transact safely and efficiently.”

“Our initial focus is on continuing to partner with the marketplaces that have the biggest market share in our supported geographies, whilst aiming to cater for the longer tail of the market in the medium term.”

Trustap’s client roster includes marketplaces in Europe, the U.S. and Asia, such as Mudah in Malaysia, PreLoved in the U.K. and Student Seats in the U.S.

The company covers more than 135 countries and has partnerships in 27, serving marketplaces in domains from electronics and tickets to vehicles and luxury goods.

The company added that it had closed a deal with a clothing marketplace in the past week, adding another five countries from Central Eastern Europe to its total.

The funding round was led by TX Ventures, a fintech venture capital fund focused on Europe. New investors SeedX, Partners Resolute, Aperture and existing shareholders MiddleGame Ventures, ACT VC, Atlantic Bridge and FurthrVC also participated.

“Our view is that within the near- to midterm, marketplaces will have to offer trusted payment solutions; otherwise they will miss out on new business,” said Krzysztof Bialkowski, managing partner of TX Ventures.

“Trustap, by providing escrow-like payment options and by lifting the operational burden off the shoulders of marketplaces, offer just that. The product is immensely scalable, which is proven by the global presence of clients and the numerous categories Trustap facilitates among buyers and sellers.”

“The easy-to-implement solution, the underlying trends in the marketplace industry and the execution-driven team will play a pivotal role for Trustap to become the leading infrastructure provider for trusted payments around the globe. It is a special addition to our fintech portfolio.”

Meanwhile, Trustap has appointed Ovidiu Solomonov as chairman, according to the latter’s LinkedIn post. Solomonov is a former COO of European markets at Adevinta.

Founded in 2017 and headquartered in Cork, Trustap also has offices in Croatia, the U.K. and the U.S. It raised $3.4 million in seed funding in 2022.

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