Cozy, a platform to streamline interactions between property managers and renters, just secured what it hopes is its last round of funding, an $8.5 million Series B led by American Family Ventures. The four-year-old company strives to make the renting process between independent landlords and renters simple, secure and intuitive.
In three years Cozy has worked with three payment processors –BancBox, Balanced Payments, and currently Stripe–and vice president of engineering Rob Galanakis shared on this week’s paymentfacilitator.com podcast the company’s trials and tribulations with the churn and the decision whether to become a payment facilitator.
Cozy is content to not be right now but Galanakis says it’s a conversation the executives have every six months. Cozy is processing several hundred million dollars per year mostly ACH.
“We are not directly a PayFac; we process our payments through Stripe, but sort of act as a PayFac for our customers — we have a merchant account with Stripe, but we also manage Stripe merchant accounts on behalf of our landlords through a product they have called Stripe Connect,” Galanakis says. “There are certainly some lessons there having to do with folks integrating with other payment processors.”
Galanakis says that Cozy’s fraud situation is sort of unique in online payments.
“Especially because so much of online payments fraud detection has to do with ecommerce, and rent payments are a totally different profile, we’ve had to use a few different services and develop some in-house tech, and some great employees, and lose almost no money to fraud,” he says.