Avangate

What Avangate does

Avangate, operating commercially as 2Checkout, is a Verifone-owned digital commerce and payment processing platform founded in 2006 and headquartered in Coral Springs, USA. The company sells a unified Monetization Platform that operates in both Payment Service Provider (PSP) and Merchant of Record (MoR) modes, enabling software publishers, SaaS companies, online service providers, e-learning platforms, gaming companies, and AI tools companies to accept payments, manage subscriptions, calculate global taxes, and mitigate fraud across 190+ countries without establishing local entities.

The platform architecture is built around three commercialized core products — 2Sell (payment acceptance), 2Subscribe (subscription management with automated renewals), and 2Monetize (digital goods commerce) — supplemented by feature modules covering Global Payments, Digital Commerce, B2B Commerce, Global Tax & Financial Services, Risk Management & Compliance, Reporting & Analytics, and Partner Sales. The stack is PCI DSS Level 1 certified and marketed at 99.99% uptime, with APIs documented through the Verifone developer portal (verifone.cloud/docs/2checkout) and pre-built shopping cart integrations for third-party e-commerce platforms.

Avangate generates revenue through per-transaction processing fees in both MoR (full operational, financial, and regulatory responsibility) and PSP modes, recurring subscription billing service fees, bundled tax compliance services, and affiliate referral economics through the Avangate Network. Go-to-market is hybrid: dedicated enterprise field sales with custom multi-year contracts alongside a self-serve free-signup onboarding path, all supported by a four-tier partner ecosystem (Enterprise Partners, Developer Partners, Standard Partners, and the Avangate Network affiliate program). Prior to its 2020 acquisition by Verifone, the company raised approximately $7.5M across disclosed seed and Series-stage rounds between 2006 and 2013.

Name

Avangate

Legal name

Verifone

Website

https://avangate.com

Company type

Private

Founded year

2006

Operating status

Operating

Headcount range

101–250 employees

Short description

Avangate, commercially known as 2Checkout, is a Verifone-owned digital commerce and payment processing platform offering Merchant of Record and PSP services to software, SaaS, online services, e-learning, gaming, and AI tools companies across more than 190 countries.

Ownership category

akta.pro rank

Product category

Digital Commerce Platform

NAICS

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (5182)

akta.pro primary industry

Merchant-of-Record (MoR) & Payment Facilitation (PayFac) Infrastructure (FSAGABAE)

akta.pro secondary industries

Fraud, Risk, Chargebacks & Compliance (KYC/AML, tax/VAT) (MPAFAJAD), Creator/Affiliate Monetization & Commerce (UGC revenue share, referrals) (MPAFAJAJ)

Keywords

• Digital commerce platform
• Merchant of record services
• Global payment processing
• Subscription billing software
• Online payment processing

Headquarters

HQ city

Coral Springs

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Infrastructure, Marketing or Sales

Revenue model

1. Payment Processing & Transaction Fees: Fees charged on each transaction processed through the platform. Supports both Merchant of Record model (full responsibility) and PSP model (focused on payment processing only).
2. Subscription Management Services: Recurring revenue from subscription billing management, automated renewals, and subscription lifecycle control services.
3. Global Tax Compliance Services: Revenue from automated VAT, GST, and sales tax calculation and compliance services bundled with merchant services.
4. Partner/Affiliate Network: Affiliate network solution for merchants to expand distribution through third-party partners and resellers.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels9 records

Core offering

Avangate, operating under the 2Checkout brand, provides a cloud-based digital commerce platform that enables merchants to sell goods and services globally across 190+ countries. The platform combines Merchant of Record (MoR) and Payment Service Provider (PSP) capabilities, offering payment processing, subscription billing, automated global tax compliance, fraud management, and a configurable shopping cart. It serves software, SaaS, online services, e-learning, gaming, and AI tool companies that need to monetize digital products internationally without establishing local entities.

Product overview

Avangate operates as a comprehensive digital commerce platform under the 2Checkout brand, offering a unified Monetization Platform with multiple integrated product modules. The core portfolio includes 2Sell (payment acceptance), 2Subscribe (subscription management), and 2Monetize (digital goods commerce), supplemented by feature modules for Global Payments, Digital Commerce, Subscription Billing, Global Tax & Financial Services, Risk Management & Compliance, Partner Sales, Reporting & Analytics, B2B Commerce, and Merchant & Shopper Services. The platform operates as both a Payment Service Provider (PSP) and Merchant of Record (MoR), enabling global commerce across 190+ countries with built-in tax compliance and fraud protection.

Differentiator

Problem solved

Functional benefit

Brands

• 2Sell: Accept mobile and online payments from buyers worldwide.
• 2Subscribe
• 2Monetize
• Avangate Network

Products and services

• 2Checkout Monetization Platform A complete commerce solution powered by Merchant of Record capabilities that unifies payments, billing, and tax compliance to unlock the full value of every market for digital merchants.
• 2Sell Accept mobile and online payments from buyers worldwide. Targeted at merchants needing global payment acceptance.
• 2Subscribe Subscription management solution to maximize recurring revenue with automated renewals and full subscription lifecycle control for SaaS and subscription-based businesses.
• 2Monetize Full commerce solution built for digital goods sales, combining payment processing, tax compliance, and fulfillment for digital product merchants.
• Avangate Network Affiliate network solution that allows merchants to expand distribution through affiliate partners and resellers globally.
• Add-ons Additional services designed to boost online sales, available as separate add-on offerings to complement the core platform.

Quantifiable outcome

• 99.99% uptime reliability for enterprise customers
• +1 more outcomes

Named customers6 records

Segments5 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Feature8 records

Partnerships

Four partnerships are on record, tiered core and minor.

• Enterprise PartnerscoreChannel Partner/ Reseller/ DistributorEnterprise partner program for large resellers and system integrators who bring enterprise clients to the platform. Provides dedicated support and custom arrangements.
• Developer PartnerscoreTechnology or IntegrationPartner program for developers and technology integrators who implement and extend 2Checkout platform capabilities for end clients.
• Standard PartnersminorChannel Partner/ Reseller/ DistributorEntry-level partner program for smaller resellers and referral partners to promote 2Checkout services.
• Avangate Network (Affiliate Partners)coreChannel Partner/ Reseller/ DistributorThe company's affiliate network solution allows merchants to leverage thousands of affiliate publishers for marketing and sales distribution. Available at avangatenetwork.com.

Scale indicators4 records

Recent moves6 records

Expansion highlights6 records

Emerging players

• Recurly: Recurly is a subscription management platform targeting SaaS and digital media businesses, directly comparable to Avangate's subscription billing capabilities.
• Chargebee: Chargebee is a subscription billing and revenue management platform that overlaps with Avangate's 2Subscribe module, often pairing with separate payment gateways rather than offering MoR.

Broad incumbents

• PayPal: PayPal's Braintree and Commerce platforms serve global digital sellers with payment processing, fraud protection, and increasingly merchant-of-record-style services, competing with Avangate for SMB and mid-market merchants.
• Checkout.com: Checkout.com is a global PSP serving enterprise digital merchants, competing with Avangate's PSP-mode offering on cross-border payment processing performance and local payment method coverage.
• Adyen: Adyen is a global payments platform serving large enterprises with unified online and in-person commerce, competing with Avangate for enterprise merchants that need cross-border payment processing.
• Stripe: Stripe is the dominant global PSP with Stripe Tax, Stripe Billing, and Atlas increasingly absorbing MoR functionality. It is the primary incumbent competitor for both Avangate's PSP and MoR offerings.

Direct peers

• FastSpring: FastSpring is a MoR platform built specifically for software and SaaS sellers, competing head-to-head with Avangate on global payments, tax compliance, and subscription billing.
• Lemon Squeezy: Lemon Squeezy is a MoR targeting SaaS, digital products, and creators, offering transparent pricing and modern developer experience that overlaps directly with Avangate's SMB self-serve funnel.
• Paddle: Paddle is a direct Merchant-of-Record competitor focused on SaaS and digital goods sellers, offering global tax, billing, and subscription management — a near-identical value proposition to Avangate's 2Checkout platform.

Others

• Verifone (parent): Verifone is Avangate's parent company and a global provider of payment hardware and in-person commerce. While not a direct commerce-software competitor, the parent owns the platform and shapes its distribution and capital allocation.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/avangate
• Facebookfacebook.com/avangate
• LinkedInlinkedin.com/company/avangate
• Instagraminstagram.com/2checkoutinc

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds3 records

Investors3 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Avangate