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Startups Hangout

Introducing Formance

Founder: Clément Salaün

Co-Founder: Anne-Sybille Pradelles

"Formance is fintech startup created in 2021 by Clément Salaün and Anne-Sybille Pradelles. Our company’s mission is to redefine the way fintechs, platforms and marketplaces move money. We have been growing a fantastic team to empower developers of money-moving companies to build and track custom money flows on a reliable and solid foundation. Back in April 2021, our founder, Clément Salaün was still working at Selency, the leading European Marketplace for preloved furniture. For five years, he was in charge of building and scaling their payment infrastructure, dealing with complex payment flows and real-time money-movement systems. He realised how challenging, time-consuming and error-prone it was, yet absolutely critical. Few months later, he took on the mission to launch Formance, to lift that weight so that any other engineering and payment team won’t have to. Platforms, marketplaces and fintechs are facing fierce competition, and payments have become a key source of differentiation.

To stand out from competitors and improve economics, it is essential for these businesses to lock in the most valuable sellers, gain margin points, increase conversion rates, and offer more transparency to sellers. This challenges come with an evolution of payment infrastructure that brings lots of complexity. They need to: - Process an exponentially increasing volume of transactions - Manage an growing variety of payment service providers (PSPs) - Implement innovative payment scenarios, which can become very complex (e.g. multiple commission models, custom payout schedules, internal wallet, fractional shares, etc.) This whole architecture between pay-ins and pay-outs is built in-house by engineering and product team. Our mission is to free money-moving companies from such complexity by providing them with an off-the-shelf toolkit to build and track custom money flows. The Formance solution is based on four products designed to improve your economics, save time, and limit costly errors:

  • A simple and open-source programming language for money: This low-code language designed for engineering teams enables the creation of reliable and unique payment scenarios in a few hours, rather than days, without any particular technical expertise related to payments.

  • Pre-built and extendable use-case templates: These templates let you quickly implement new business strategies or product features.

  • In-app Wallets: Create a closed-loop economy within your platform with in-app wallets (coin system with expiry date, pay-out to wallet, refund to wallet, etc.) to improve your customer retention, merchants experience and reduce your processing fees.

  • An open-source financial ledger: Working in tandem with Numscript and designed for reliability, Formance Ledger is an immutable system-of-record that enables tracking financial flows that move value through merchants, intermediaries, parties and data extract for business analysis and decision-making.

  • Connectors: Integrate your whole payment stack to Formance with existing connectors or create your own in minutes thanks to our open source framework.

  • Real-time transaction tracking tools: Designed for finance and operations teams, Formance Cloud enable the reconciliation of pay-ins and payouts, and the identification of issues related to transactions."