Mercury

Mercury provides banking services via a web portal to SMEs, with a specific focus on startups. The company offers checking accounts, savings accounts, and debit cards. The platform also facilitates payments and money transfers, both domestic and international, at no added cost. In addition, the company does not charge monthly or overdraft fees and, therefore, mainly generates its revenue from interchange and transaction fees.

It also launched a new product called Vault (in March 2023) that offers FDIC insurance up to USD 3 million to customers with more than USD 3 million in their accounts. It will invest customer funds in US government-backed securities held in the customer’s name and also spread the deposit among 12 different banks to reduce risk.

In addition to banking products, the company also offers company tools such as team management tools and bookkeeping services via its platform. The platform also enables integrations with external software solutions and also provides API access. For instance, it integrates with accounting software such as Xero and Quickbooks and HR software such as Gusto and Deel.

The company offers its product free of charge and requires no minimum balance requirements. In addition, the company also offers a package called ‘Tea Room’, which is also offered free of charge, but requires a minimum deposit of USD 250,000 and offers automatic cash management facilities in addition to unique features such as rewards schemes and exclusive events.

Key customers and partnerships

Mercury provides its services under the banking license of Evolve Bank & Trust and Choice Financial. As of March 2023, the company served over 100,000 customers and claimed that 50% of Y Combinator cohorts choose Mercury as their preferred banking partner.

Funding and financials

In July 2021, the company raised USD 120 million in Series B funding at a valuation of USD 1.6 billion; the round was led by Coatue. The fresh funds were earmarked to develop new products and expand its workforce.

It reported that its operations have been profitable since August 2022, and that it has processed more than USD 50 billion in transactions in 2022, compared to USD 23 billion in 2021.