Magic Analysis: $4M Raised
What is Magic?
Magic provides pay by bank infrastructure for merchants accepting online and subscription payments. Its product uses bank authentication, ACH rails, and a proprietary settlement model that analyzes more than 1,000 risk factors. The company positions the system around lower processing fees, fewer chargebacks, and fewer failed payments.
Location
580 California Street, Floor 12, San Francisco, California 94104, United States
Employees
11-50
Founded
2022
Revenue
$97.9M
Product Features & Capabilities
- Link your bank, Pay with Magic, Earn Rewards, Earn up to 20% store credit, Secure linking using Plaid, One-click checkout, No fees, Fraud protection, Free rewards program, Instant credit after purchases, Simple sign-up process.
Pricing
- 0.65% charged on every transaction processed via Magic Checkout as added pricing.
- Standard payment gateway pricing applies on the underlying payment.
How much Magic raised
1 - $4M
May 29, 2020Lead Investor: Placeholder, Lightspeed Venture Partners, and 9 more.
Who are the founders of Magic
CK
Chetan Kulhari
Founder
RM
Renasha Mishra
Founder
HQ Full Address
580 California Street, Floor 12, San Francisco, California 94104, United States
Market Focus
Magic primarily focuses on the e-commerce and fintech industries, providing a checkout platform that helps consumers save money while shopping by eliminating credit card fees and offering store credit as rewards.
Business Model
Business model eliminates credit card fees; revenue from store credit rewards.
Investors
- PayPal Ventures (lead investor)
- Cherubic
- Synchrony
- KX
- Northzone
- Volt Capital
Competitors Overview
The main competitors of Magic in the checkout platform market include:
-
Shopflo:
- Features: Offers a super-fast checkout process, reducing cart abandonment. It integrates quickly with platforms like Shopify and allows customers to save their payment information for future purchases.
- Advantages: Focuses on enhancing the customer experience with a streamlined checkout process and analytics features to optimize conversions.
-
Razorpay Magic Checkout:
- Features: Provides a seamless checkout experience with options for both prepaid and cash-on-delivery transactions. It supports diverse payment methods and aims to reduce cart abandonment.
- Advantages: Known for its efficiency and user-friendly interface, Razorpay Magic Checkout enhances conversion rates and offers robust support for merchants.
Notable differences include Shopflo's emphasis on analytics and integration capabilities, while Razorpay focuses on a broader range of payment options and a smooth user experience.
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