Solutions by Text Secures $110m to Expand Platform

Solutions by Text (SBT), a provider of embedded payment solutions through a compliant-first messaging platform, has secured $110 million in growth financing. The funding round was co-led by StepStone Group and Edison Partners, with additional support from Stifel Venture Bank, a division of Stifel Bank, which provided an undisclosed lending facility.

Founded in 2008 and headquartered in Dallas, Texas, SBT brands itself as the world’s first “FinText” company. It offers a platform that integrates messaging and real-time embedded payment services, specifically designed for the consumer finance sector. The platform allows financial services firms to engage with consumers through text messages, sending payment plan reminders and past due notices. Customers can respond to these texts to make payments, streamlining the payment process and enhancing customer interaction.

The company has reported a significant increase in its messaging volume, which grew by 95% in 2023 compared to the previous year. This growth highlights the increasing demand for more efficient and direct communication methods in financial services.

SBT’s CEO, David Baxter, emphasised the need for alternatives to traditional communication methods in the financial industry. “Consumers want an alternative to endless emails, confusing web portals, and lengthy rounds with call centres when engaging their financial providers,” Baxter said.

The new funds will be used to enhance SBT’s AI and payments capabilities and to explore inorganic growth opportunities, positioning the company for further expansion in the financial technology sector.