ZeroRisk has raised $4 mn in a funding round led by Elkstone. The company will use the financing to expand its US operations, where it already works with several Tier 1 acquiring banks.
Founded in 2023, ZeroRisk develops merchant risk and compliance software for financial institutions. Its technology is used by acquiring banks, payment service providers and digital sellers to manage merchant portfolios and regulatory requirements.
The company’s Merchant Management platform combines multiple risk and compliance processes within a cloud-based system. It supports standards including the Payment Card Industry Data Security Standard and the NIST Cyber Security Framework.
ZeroRisk also provides real-time analytics and dynamic risk scoring based on merchant data. The software is designed to identify potential vulnerabilities and cyber risks while automating parts of the compliance process.
The platform includes automated workflows and access to a marketplace of security and compliance services. ZeroRisk said these functions are intended to reduce manual work and give users more current information when assessing merchant risk.
ZeroRisk’s platform sets a new standard for merchant risk management at acquiring banks, expanding beyond cybersecurity and compliance to address broader merchant risks and other compliance standards.
Gary Nolan, Co-Founder and CEO of ZeroRisk
Gary Nolan said the financing will support international expansion and further product development.
The company is targeting a payments sector facing higher cybersecurity and regulatory demands. ZeroRisk cited industry data indicating that 80% of global companies fail to meet PCI compliance standards, with smaller businesses accounting for a significant share of the compliance gap.
Its platform is designed to provide small and mid-sized merchants with security and compliance tools typically used by larger organizations. Acquiring banks and other payment companies can apply those tools across larger merchant portfolios through the same system.
ZeroRisk plans to expand globally, with particular emphasis on the US. The company is also hiring for 40 positions across data science, product and engineering, alongside user experience and commercial roles.
The additional staff will support product development and delivery for acquiring banks, independent sales organizations and merchants. ZeroRisk said the new hires will also support further work on real-time risk information and automated compliance tools.
Niall McEvoy, Head of Venture at Elkstone, said ZeroRisk is positioned to help acquiring banks manage increasingly complex merchant portfolios. He also pointed to the company’s use of AI and scalable software in payment risk management.
The funding gives ZeroRisk additional capital to expand its presence in the US payments market and develop its merchant management software. The company will continue focusing on compliance, cyber risk assessment and portfolio monitoring for financial institutions.
