Texas-based paytech startup AppBrilliance has bagged $3m seed funding to establish the groundwork for open banking and payments for US businesses.

The funding round was led by Studio VC, under its recently launched Fund II portfolio. Other fintech investors also joined the round.

AppBrilliance’s patent technology and non-custodial Money API enables instant push payments to businesses.

For consumers, it enables real-time payments and contactless checkout experiences both in-app and in-browser.

For businesses, it reduces payment processing costs by at least 75%, noted the firm.

By using its non-custodial technology for open banking and payments, the company aims to disrupt the $4trn payment processing industry.

Using fresh capital, it will fund the expansion of its technology, sales, and engineering teams.

AppBrilliance CEO and co-founder Eric Smith said: “Our patented technology is breaking down barriers in the payments and banking space with far-reaching implications for both.

“With our seamless non-custodial solutions, we enable real-time open-payments ecosystems that allow businesses to move away from expensive debit and credit processors.

“By combining our patented non-custodial technology for real-time payments with deep account control, we enable trusted business to go beyond what is possible today and save up to 75% on payments processing.”

Studio VC partner and CIO Joseph Coyne said: “Prior to making our investment, the Studio VC team reviewed nearly 50 fintech and payments opportunities – AppBrilliance is the type of game-changing technology that our partners at Studio VC hunt for every day.

“We are excited to support Eric and his team of industry veterans as they upend a massive market that has been stagnated for decades.”