Alternative Payments, a New York-based fintech startup tackling outdated financial workflows in underserved B2B sectors, has secured $22 million in funding to expand its mission of digitizing and automating payments for industries left behind by traditional fintech.
The round was led by MissionOG and Third Prime, and will fuel product development, go-to-market expansion, and the rollout of autonomous payment solutions tailored to blue-collar, service-based, and operations-heavy businesses.
Bringing Modern Fintech to Forgotten Sectors
While fintech innovation has largely focused on consumer finance and tech-first enterprises, industries like managed services, field operations, logistics, and IT providers remain tied to slow, manual processes—from paper invoices to drawn-out payment cycles.
Alternative Payments is flipping that script with a fully integrated B2B payment platform that automates invoicing, reconciliation, and financing—all from a single interface. The result? Clients see a 40–50% reduction in days sales outstanding (DSO), freeing up working capital and improving operational efficiency.
“We’re not just speeding up payments—we’re transforming the cash flow foundation for businesses that have long been underserved,” said Baxter Lanius, founder and CEO.
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From Investor Insight to Operator Impact
Lanius founded Alternative Payments in 2021 after a decade on the investment side, including leadership roles at Apollo Global Management and Victory Park Capital. His exposure to fintech innovation—and its blind spots—led him to identify a huge gap in modern payment infrastructure for non-tech sectors.
That vision became Alternative Payments: a platform designed from the ground up for industries where legacy systems still dominate.
Purpose-Built for Scale and Simplicity
The company’s platform offers:
- Integrated AR automation across credit card, ACH, and B2B BNPL
- Seamless syncing with ERP and accounting tools
- White-labeled, client-facing portals for flexible financing and checkout
- Tools to eliminate manual reconciliation and improve payment accuracy
Since 2024, Alternative Payments has grown its processing volume by nearly 5x, a signal of its growing traction among mid-market businesses.
Fueling the Next Growth Phase
With fresh capital in hand, the startup plans to:
- Scale its go-to-market team to reach more underserved B2B verticals
- Expand its autonomous payment features
- Deepen integrations with major ERP platforms
- Accelerate geographic expansion and international rollouts
“This is about making modern finance accessible to every business—not just tech-forward ones,” Lanius added. “By automating the payment lifecycle, we’re giving companies the tools to operate faster, more predictably, and with greater resilience.”
Investor Confidence in a $100B+ Opportunity
“Alternative Payments is delivering the kind of automation and insight that legacy providers have failed to offer,” said Rob Metzger, General Partner at MissionOG. “They’re unlocking a huge segment of the B2B economy that’s overdue for disruption.”
As the shift toward automation continues across industries, Alternative Payments is positioning itself as the connective tissue for modern B2B commerce—helping businesses get paid faster, operate leaner, and finally break free from the paper-heavy processes of the past.
