PaymentWorks
PaymentWorks is a Waltham, MA-based SaaS company that automates vendor onboarding, identity verification, sanctions compliance, and B2B payments for enterprise, government, and higher education customers, with built-in payment-fraud indemnification up to $2M per event.
- Company typePrivate
- Founded2014
- HeadquartersWaltham, United States
- Headcount101–250
- GTM typeB2B
- OfferingSoftware
What PaymentWorks does
PaymentWorks is a private, Delaware-incorporated vendor management SaaS company founded in 2014 and headquartered in Waltham, Massachusetts. The company sells a unified platform that automates vendor onboarding, identity and bank-account verification, continuous sanctions and compliance monitoring, vendor risk management, B2B electronic payments, and payment-fraud indemnification. Its core differentiator is the inclusion of up to $2M in payment-fraud indemnification on ACH payments processed through the platform, extendable to $5M through an exclusive supplemental insurance arrangement with Lockton Companies. A wholly-owned subsidiary, PaymentWorks Acquisition Company LLC, operates the EarlyPay Program with Mitsubishi HC Capital America as third-party purchaser, allowing vendors to receive accelerated payment on approved invoices at a discount.
The platform is modular and serves three primary verticals: enterprise organizations, government entities (municipalities, counties, cities), and higher education institutions, with a secondary focus on mid-market finance teams. Customers cited publicly include Portland State University, Ryan LLC, Cabarrus County NC (recovering from a $2.5M vendor impersonation scam), City of Vista, and the University of Tennessee. The company distributes through a direct enterprise field sales motion complemented by a self-serve vendor registration portal, a partner referral program, and event-driven community initiatives such as Vendor Management Appreciation Day. Marketing emphasizes content (blog, podcasts, case studies, video library) and vertical thought leadership.
The revenue model combines SaaS subscriptions (annual billing, pricing not publicly disclosed), transaction-based fees on ACH payments, transaction-based spread on EarlyPay receivables purchases, and referral economics on supplemental insurance. The company has raised approximately $20M cumulatively across rounds in 2014, 2016, 2017, 2020, and 2022 (including an SEC-exempt offering of $17M filed in 2022), operates with 101-250 employees, and serves customers only in the United States. Operating geographies and ownership/investor identities are not publicly disclosed beyond the Delaware corporate structure.
PaymentWorks firmographics
Firmographics- Name
- PaymentWorks
- Legal name
- PaymentWorks, Inc.
- Website
- https://paymentworks.com
- Company type
- Private
- Founded year
- 2014
- Operating status
- Operating
- Headcount range
- 101–250 employees
- Short description
- PaymentWorks is a Waltham, MA-based SaaS company that automates vendor onboarding, identity verification, sanctions compliance, and B2B payments for enterprise, government, and higher education customers, with built-in payment-fraud indemnification up to $2M per event.
- Ownership category
- akta.pro rank
PaymentWorks industry classification
Industry- Product category
- Vendor Management Software / B2B Payment Fraud Protection
- NAICS
- Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232), Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320), Activities Related to Credit Intermediation (5223)
- SIC
- Miscellaneous Business Credit Institution (6159), Finance Services (6199), Services-Computer Programming, Data Processing, Etc. (7370)
- akta.pro primary industry
- Bill Pay, Invoicing & Payables Platforms (BPAMAFAF)
- akta.pro secondary industry
- Integrated Payment Processors (PSP/Acquirer) (FSAMABAA)
Keywords
Where PaymentWorks is headquartered
LocationHeadquarters
- HQ city
- Waltham
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
PaymentWorks business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure
Revenue model
- SaaS Platform Subscription: Subscription-based access to the PaymentWorks vendor management platform. Organizations pay for vendor onboarding, verification, compliance monitoring, and fraud protection capabilities.
- ACH Payment Processing: Transaction fees associated with processing domestic ACH payments through the platform. Payments are indemnified up to $2M as part of the service offering.
- EarlyPay Program Fees: Fees charged to vendors for early payment on approved invoices. Vendors sell receivables at a discount to receive payment before the due date. EarlyPay Fee Percentage determined by fee schedule agreed upon enrollment.
- Supplemental Insurance: Optional Supplemental Social Engineering Fraud Insurance through Lockton Companies providing $1-3 million in additional coverage on top of included $2M indemnification. Additional revenue share or referral arrangement with Lockton Companies.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | Base platform with fraud indemnification included |
| Subscription | Annual | Supplemental Social Engineering Fraud Insurance |
Go-to-market motion3 records
Distribution channels3 records
Marketing channels10 records
PaymentWorks product offering
Product offeringCore offering
PaymentWorks provides a vendor management platform that automates supplier onboarding, identity and bank account verification, continuous sanctions and tax compliance monitoring, and B2B electronic payments processing, with up to $2 million in built-in ACH payment fraud indemnification. The platform is targeted at enterprise finance/procurement teams, government entities, and universities managing vendor risk across the procure-to-pay lifecycle.
Product overview
PaymentWorks is a vendor management platform built as a unified system with multiple integrated modules. The core offering centers on Vendor Onboarding Software, which connects to Vendor Compliance (continuous monitoring), Vendor Verification (banking authentication), Vendor Identity (identity management), Vendor Risk Management, and Vendor Fraud Protection. Additional modules include B2B Electronic Payments, Nacha ACH Rules Change guidance, the EarlyPay add-on for early invoice payments, and Supplemental Social Engineering Fraud Insurance (offered through Lockton Companies). The platform provides indemnification up to $2 million for ACH payments and automates sanctions screening, tax ID validation, and compliance workflows.
Differentiator
Problem solved
Functional benefit
Brands
- PaymentWorks EarlyPay Program: A program that allows vendors to receive early payment on approved invoices at a discounted rate.
Products and services
- Vendor Onboarding Software Core platform module that automates vendor onboarding workflows, collecting required documentation (W-9, insurance, certifications), verifying vendor information, and managing the vendor lifecycle from invitation through active status, for enterprise, government, and education organizations.
- Vendor Compliance Continuous vendor compliance monitoring service that automates tax ID and address validation, sanctions list screening (OFAC, EU, UN, debarred parties), and ongoing compliance with regulatory requirements for organizations managing large vendor populations.
- Vendor Verification Automated vendor authentication service that verifies vendor banking account ownership, business legitimacy, and payment credentials through secure verification processes designed to prevent fraudulent ACH payments.
- Vendor Identity Identity management module that establishes, validates, and continuously maintains authenticated vendor identities including ownership verification and beneficial ownership compliance under FinCEN guidelines.
- Vendor Risk Management Module for assessing and managing vendor-related risks including financial stability, cybersecurity, and operational risk factors throughout the vendor lifecycle.
- Vendor Fraud Protection Payment fraud protection service that indemnifies organizations against vendor impersonation and social engineering fraud, providing up to $2 million in coverage for ACH payments processed through the PaymentWorks platform.
- B2B Electronic Payments Module that facilitates electronic payment methods for B2B transactions, helping organizations convert vendors from paper checks to electronic payment formats and integrate payments with their broader payables strategy.
- Nacha ACH Rules Change Solution Compliance guidance and tooling for organizations to adapt to Nacha ACH rules changes, helping maintain compliant electronic payment processing within the PaymentWorks platform.
- PaymentWorks EarlyPay Program Early payment program that enables vendors to receive payment on approved invoices before the standard due date at a discounted rate, operated through the company's PaymentWorks Acquisition Company LLC subsidiary with Mitsubishi HC Capital America purchasing the receivables.
- Supplemental Social Engineering Fraud Insurance Optional supplemental insurance offering $1-3 million in additional fraud protection beyond the base $2 million indemnification, underwritten and delivered through Lockton Companies for organizations seeking higher per-event coverage.
Quantifiable outcome
- Indemnifies vendor payments up to $2M for ACH payments processed through the platform
- +3 more outcomes
Companies that use PaymentWorks
Customer profileNamed customers5 records
Segments4 records
Ideal customer profiles4 records
PaymentWorks technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability3 records
Feature6 records
PaymentWorks partnerships and signals
Strategic signalScale indicators5 records
Recent moves6 records
Expansion highlights6 records
PaymentWorks competitors and assessment
Company assessmentDirect peers
- Tipalti: Tipalti is a direct competitor offering end-to-end AP automation including vendor onboarding, tax compliance, global payments, and reconciliation — overlapping with PaymentWorks on supplier management and B2B electronic payments for mid-market and enterprise.
- AvidXchange: AvidXchange automates accounts payable workflows including vendor onboarding, invoice processing, and electronic B2B payments, competing head-to-head with PaymentWorks' payables and payment automation capabilities.
- Bill.com: Bill.com provides B2B payments and AP/AR automation for SMB and mid-market, addressing similar vendor onboarding and electronic payment use cases that PaymentWorks targets.
- Stampli: Stampli offers AP automation with vendor management and electronic payment capabilities, competing directly in mid-market and enterprise AP workflows where PaymentWorks also operates.
- MineralTree: MineralTree provides AP automation and B2B payments, including vendor management and electronic payment enablement, directly overlapping with PaymentWorks' procure-to-pay platform.
- Airbase: Airbase delivers AP automation, corporate cards, and vendor payment workflows with built-in controls and approvals — comparable to PaymentWorks' procure-to-pay focus for mid-market organizations.
Broad incumbents
- Coupa Software: Coupa is a broader spend management platform with vendor master, supplier risk, and payment capabilities that can subsume much of what PaymentWorks offers as a dedicated module within a wider business spend suite.
- SAP Ariba: SAP Ariba is the incumbent procurement and supplier management suite used by large enterprises, providing vendor onboarding, compliance, and B2B payment functionality at scale that competes with PaymentWorks at the high end.
Emerging players
- Mesh Payments: Mesh Payments focuses on B2B payments orchestration and automated vendor payouts, partially overlapping with PaymentWorks' electronic payments and vendor risk capabilities.
- Resolve: Resolve offers B2B payments and AP automation with a focus on automated supplier onboarding and electronic payments, representing a partial functional overlap with PaymentWorks' platform.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks1 record
Key highlights6 records
Customer concentration
PaymentWorks social profiles
Digital presencePaymentWorks financial estimates
Financial estimateRevenue estimate
Valuation estimate
PaymentWorks leadership team
Management profileNumber of profiles
Profiles6 records
PaymentWorks subsidiaries and ownership
Company hierarchySubsidiaries1 record
PaymentWorks funding detail
Funding detailFunding overview
Funding rounds5 records
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
PaymentWorks M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about PaymentWorks
What does PaymentWorks do?
PaymentWorks provides a vendor management platform that automates supplier onboarding, identity and bank account verification, continuous sanctions and tax compliance monitoring, and B2B electronic payments processing, with up to $2 million in built-in ACH payment fraud indemnification. The platform is targeted at enterprise finance/procurement teams, government entities, and universities managing vendor risk across the procure-to-pay lifecycle.
Is PaymentWorks a public or private company?
PaymentWorks is a private company. It is classified as venture growth investor backed and is currently operating.
When was PaymentWorks founded?
PaymentWorks was founded in 2014. It employs 101 to 250 people.
Where is PaymentWorks based?
PaymentWorks is headquartered in Waltham, United States, in the North America region.
How does PaymentWorks make money?
Four revenue lines are on record. SaaS Platform Subscription is the primary driver. The others are ACH Payment Processing, earlyPay Program Fees and supplemental Insurance.
Who are PaymentWorks's main competitors?
Direct peers on record are Tipalti, AvidXchange, Bill.com, Stampli, MineralTree and Airbase. Broad incumbents are Coupa Software and SAP Ariba. Emerging players are Mesh Payments and Resolve.
Does PaymentWorks have an API?
No public API is recorded for PaymentWorks.
What industry is PaymentWorks in?
PaymentWorks's product category is Vendor Management Software / B2B Payment Fraud Protection. Its primary akta.pro industry code is BPAMAFAF, Bill Pay, Invoicing & Payables Platforms, with a secondary code of FSAMABAA, Integrated Payment Processors (PSP/Acquirer). Its NAICS code is 52232 and its SIC code is 6159.