Magic
Magic is a fintech company specializing in ACH payments, offering a platform that enhances revenue by reducing processing fees and card-related costs.
Company Overview
Magic is a fintech company in the payments sub-industry, founded in 2010. The company is headquartered in the United States and currently employs 50 people. Magic provides a platform for ACH payments, facilitating seamless and secure bank payments. The company claims to offer solutions that can add 5% to annual revenue by cutting out expensive card fees through their low-rate pay-by-bank feature.
ACH Payment Platform
Magic provides an enterprise-grade ACH payment platform designed to guarantee funds and launch quickly, offering seamless integrations with accounting and other systems. The platform aims to help customers reduce processing fees by 80%, fraud and chargebacks, subscription churn by 50%, and payment failures by 70%. The platform uses Dwolla for payment functionality, requiring customers to open a Dwolla Account, and Plaid for linking bank accounts securely.
Funding and Growth
Magic has raised $10 million in funding and has grown to serve 100,000 customers. Despite its relatively small team of 50 employees, the company has made significant strides in the fintech payments space, leveraging investments to scale its operations and expand its customer base.
Y-Combinator and Remote Work
Magic participated in the Summer 2022 batch of Y-Combinator, a well-known startup accelerator. The company operates with a flexible work environment, accommodating both fully remote and partly remote team configurations.
Customer Benefits
By eliminating credit card fees, chargebacks, and churn, Magic aims to offer significant cost savings to their customers. The company highlights that customers can achieve up to a 5% increase in annual revenue by opting for their bank payment solutions. It also focuses on reducing subscription churn by 50% and payment failure by 70%, alongside a promising 80% reduction in processing fees and fraud and chargebacks.