Layer2 Financial , a Canada-based regulated payments infrastructure company, has secured USD 10.7 million in a Series A funding round. The round was led by Galaxy Ventures with significant participation from Accomplice.

The funds will be allocated towards product development, market expansion, technological infrastructure, and talent acquisition. Layer2 Financial operates a global platform that facilitates cross-border money transfers. The company's multi-partner platform provides businesses with compliant payment solutions for various currencies through a single API, offering services such as collections, payouts, and foreign exchange.

Layer2 Financial's customer base includes non-bank financial institutions, traditional banks, neobanks, enterprise organisations, and other payment companies. Layer2 Financial in the context of cross-border payments Layer2 Financial was founded in 2021 to address inefficiencies in cross-border payments. The company has since grown to become a significant player in the fintech industry, known for its approach to simplifying international money transfers.

The cross-border payments market has been experiencing rapid growth, driven by globalisation and increased international trade. According to a report by Allied Market Research, the market is expected to reach USD 356.5 trillion by 2032, with a CAGR of 7.3%. This growth is fueled by the rising demand for faster, more secure, and cost-effective payment solutions.

Regulatory compliance is a critical aspect of the cross-border payments industry. Companies like Layer2 Financial must navigate a complex landscape of international regulations to ensure their services meet legal standards in multiple jurisdictions. This has led to the development of sophisticated compliance frameworks and partnerships with regulatory bodies.

Technological advancements, particularly in blockchain and digital currencies, are also shaping the future of cross-border payments. Innovations in these areas promise to further reduce transaction times and costs, making global commerce more accessible.Layer2 Financial's recent funding round positions it well to capitalise on these trends and continue its growth trajectory in the competitive fintech landscape. .