Alternative Payments Raises $22M To Help ‘MSPs Automate All Money Movement’

‘The MSP market has been massively underinvested in when it comes to payments. We’ve built the biggest financial services team in the space because we believe the opportunity is massive, and our clients are hungry for better tools,’ says Alternative Payments CEO Baxter Lanius.

Alternative Payments has secured $22 million in funding, fueling the company’s mission to bring cutting-edge automation and global accessibility to underserved B2B industries.

The New York-based B2B payments vendor plans to use the capital to expand the product suite beyond core payment automation as well as scale its customer success and go-to-market teams. The funding was led by MissionOG and Third Prime.

“The first key component of the fundraise is product development,” CEO Baxter Lanius told CRN. “We’re not staying stagnant on just accounts receivable and payments. We’re building a broader financial services platform that allows MSPs to automate all money movement. The second is really doubling down on our sales and customer success infrastructure. We want to offer the best support in the market, and we’re investing in that.”

The funding will also go towards growing the 45-person team to about 80 by the end of the year, according to Lanius (pictured above). Additionally, the company will be ramping up investments in community-building, live events and educational support for MSPs of all sizes.

“The MSP market has been massively underinvested in when it comes to payments,” Lanius said. “We’ve built the biggest financial services team in the space because we believe the opportunity is massive, and our clients are hungry for better tools.”

Since 2024, the company has grown its total processing volume by nearly five times and its platform has been credited with reducing days sales outstanding (DSO) by as much as 50 percent for its clients. Lanius attributes this impact to both technology and tailored support.

“It’s not just about software, it’s about adoption,” he said. “We don’t just give MSPs tools. We go to war with them. We help them move from 10 percent online payment adoption to 80 percent and that drives real results.”

Ryan Huneidi, founder and CTO of Edwardsville, Illinois-based MSP Huneidi Services LLC, said Alternative Payments has been an integral part of his business for so long.

“When I first signed up, the setup was seamless, they had everything up and running in under two hours,” he told CRN in an email. “My clients adopted the platform quickly and effortlessly, which made the transition even smoother. I highly recommend Alternative Payments to any MSP. It has truly transformed the way I get paid, both in terms of speed and efficiency.”

The company’s long-term goal is to become the category-defining fintech for IT services. In the near term, the focus is to expand its footprint internationally with launches in Canada and the UK planned by year’s end.

And with more product launches on the horizon and a growing partner ecosystem, Lanius said the company is just getting started.

“We’re seeing huge demand globally, but we’re being intentional about where we expand. For us, it’s all about sustainable growth and maintaining world-class support,” he said. “The future of B2B payments is rules-based, automated and intelligent. We’re building toward a world where businesses can manage all payments, receivables and payables, without lifting a finger.”