The rules of global commerce have never changed faster — or punished merchants more harshly for failing to keep up. Into that environment steps Outpost, a London- and New York-based fintech that has just raised $17.5 million (£13 million) in a Series A funding round to scale its AI-powered platform for cross-border payments and compliance. The round was led by Ribbit Capital, the firm behind some of the most consequential fintech bets of the past decade, and joins a growing wave of investor conviction that the infrastructure underpinning global trade is long overdue for a rebuild.
The investment follows a $3 million seed round less than a year ago, also led by Better Tomorrow Ventures, and includes angel backing from senior executives at Revolut, Uber, Affirm, Airwallex, and Checkout.com. The speed of the progression from seed to Series A signals both strong early commercial traction and the urgency that investors are attaching to the problem Outpost is solving.
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A Record-Breaking Trade Landscape — and a Fragmented One
The backdrop for Outpost’s raise is a global trading environment hitting simultaneous peaks and fault lines. According to UNCTAD’s December 2025 Global Trade Update, global trade surpassed $35 trillion in 2025 for the first time — a 7% increase that added roughly $2.2 trillion to global economic activity. It marked a reversal of the stagnation seen in 2023 and 2024, with East Asia, Africa, and South–South trade corridors as the primary growth engines.
But that headline figure obscures a turbulent operating reality for the merchants powering it. Even as volumes climbed, the regulatory and geopolitical environment shifted dramatically beneath them. The World Economic Forum’s year-end trade review described 2025 as a year of “profound contradiction” — record-setting trade volumes sitting alongside what it called “tariff turmoil” and the accelerating fragmentation of trade alliances.
The trigger for much of that disruption came from Washington. In April 2025, the Trump administration announced sweeping changes to US import policy, introducing what it called “Liberation Day” tariffs — a baseline 10% duty on all imports, with higher country-specific rates targeting approximately 60 nations. The administration also ended the de minimis exemption for shipments from China, removing the $800 duty-free threshold that had underpinned a significant share of cross-border ecommerce. According to reporting by Digital Commerce 360, analysts at McKinsey estimated the US weighted-average tariff rate jumped from approximately 2% to over 20% following the April 2025 announcements.
The downstream effects were immediate. Merchants sourcing from China, Mexico, and Canada faced cost increases ranging from 10% to 34% almost overnight. Customs clearance slowed. Payment failures spiked at borders where paperwork requirements changed without warning. And governments worldwide, emboldened by the political normalisation of protectionism, began updating their own indirect tax regimes with increasing frequency. Today, there are more than 20,000 indirect tax jurisdictions actively monitoring and updating rates globally — a figure that makes any manual compliance strategy essentially untenable at scale.
Why Compliance Is Now a Revenue Problem
For most merchants, the instinct is to think of tax and regulatory compliance as a back-office concern. Outpost’s pitch is that this is a category error — that in a world of constantly shifting rules, compliance failures translate directly into lost revenue, not just penalties.
The mechanism is straightforward. When a transaction is processed across borders rather than through a local entity, payment approval rates fall. Issuing banks flag cross-border transactions at higher rates as potential fraud. FX markups erode margins silently. And where tax classifications are incorrect, goods can be held at customs — costing merchants both revenue and customer trust. Outpost claims merchants typically see approval rates increase by 10% when transactions are routed through domestic entities rather than processed cross-border, a figure it attributes to its model of operating dedicated local entities in each target market.
Will Mahon-Heap, CEO and founder of Outpost, is well-placed to articulate this problem. He joined Revolut in its earliest days — when the company fit inside a single coworking space in London — and was still there when it had grown to more than 3,000 employees globally. In that time, he led Revolut’s international expansion, launching its first overseas market in Australia before rolling out operations across Brazil, India, the Philippines, and others. He oversaw 22 licence applications, including three full banking licences. He subsequently served as Chief Business Officer at Wayflyer, where the company deployed over $1 billion in revenue-based financing. That combination of regulatory depth and commercial scale informs how Outpost was designed from the ground up.
“Brexit, shifting tariffs, and regulatory fragmentation have made cross-border commerce more hostile than at any point in the last two decades,” Mahon-Heap said. “Merchants are forced to choose between spending millions on consultants and local entity setup, or carrying enormous risk on payments and compliance. Outpost exists to eliminate that trade-off.”
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The Architecture of the Platform
At its core, Outpost operates as a legally liable intermediary. Rather than providing software that helps merchants manage their own compliance obligations, it assumes those obligations entirely on their behalf. This is a meaningful distinction. The Merchant of Record model, which Outpost employs as its primary commercial structure, places the platform as the legal seller for all transactions — meaning Outpost, not the merchant, is exposed to audit risk, penalties, and liability if something goes wrong.
The practical infrastructure supporting this model relies on two layers. The first is a proprietary AI engine trained on millions of pages of trade regulation. The system monitors over 20,000 tax rates in real time, automatically applying the correct tax treatment and customs classification to every transaction. When a government updates its VAT rate, or a new tariff tier comes into effect, the engine updates accordingly — without the merchant ever having to intervene.
The second layer is Outpost’s network of dedicated local entities. Rather than processing transactions cross-border, the platform routes payments through its own country-specific legal entities, giving merchants access to domestic payment rails, local acquiring relationships, and alternative payment methods that would otherwise require years of entity setup to unlock. In Brazil, for example, a marketplace client processed transactions through Outpost’s local entity to gain access to Pix, the country’s instant payment system, and simultaneously remove cross-border surcharges — recovering 14% of gross revenue that had previously been lost to card declines, FX markups, and local payment method gaps.
Outpost offers this infrastructure through two distinct products. Its Merchant of Record service creates a dedicated local entity for each merchant, rather than pooling multiple clients under a single corporate vehicle. This matters commercially: merchant category codes are optimised per client, and approval rates are not diluted by the transaction profiles of other businesses on the platform. Its Tax of Record service goes further, assuming full liability for VAT, GST, and sales tax globally — including registration, calculation, filing, and remittance — while also absorbing all audit risk and penalties. The latter is a model that payments compliance experts describe as a significant departure from traditional approaches, which typically require merchants to either self-manage or hire in-market specialists.
The Investors and Their Conviction
Ribbit Capital’s decision to lead the round is noteworthy. The firm, founded by Micky Malka, has spent more than a decade backing companies that have gone on to define categories in financial services: Revolut, Coinbase, Robinhood, Nubank, and Credit Karma among them. Nick Shalek, General Partner at Ribbit, described Outpost’s model as more than an incremental improvement on existing payment infrastructure.
“Cross-border commerce represents a massive, multi-trillion dollar opportunity that has been historically held back by fragmented infrastructure,” Shalek said. “Outpost isn’t just offering a better payment gateway; they’ve introduced a novel model that fundamentally changes how merchants access global markets. By absorbing the operational and compliance burdens that stifle expansion, Outpost is building a category-defining platform for the next era of global trade.”
Better Tomorrow Ventures, the New York and San Francisco-based early-stage fund that manages approximately $450 million in AUM and previously led the seed round, reinforced that view. Nihar Bobba, Partner at BTV, pointed specifically to Outpost’s full-stack approach as the strategic differentiator: “While other players are building incremental tools, Outpost has attacked the problem with a full stack model that other providers simply can’t match.”
The angel roster — drawing on operators from Revolut, Uber, Affirm, Airwallex, and Checkout.com — also signals a level of domain conviction that goes beyond financial return. These are individuals who have spent careers navigating exactly the regulatory complexity Outpost is designed to abstract away.
What Customers Are Actually Experiencing
The clearest test of any infrastructure claim is how the merchants using it describe the difference. Outpost’s early customer base spans multiple sectors — subscription platforms, consumer software companies, and physical goods brands — each with different exposure to the regulatory problems the platform addresses.
Welltech, a global mobile app studio taking payments in over 100 countries, described its pre-Outpost compliance operations as “a constant drain” — managing tax registrations across dozens of markets manually, consuming team bandwidth that would otherwise be directed at growth. Since migrating to the platform, the company reports faster expansion into new markets and measurably improved payment approval rates.
For Swans UK, a physical goods brand selling into European markets, the problem was more visceral. Post-Brexit, European customers were receiving unexpected VAT charges at their door — a customer experience failure that directly depressed repurchase rates. After integrating Outpost with its Shopify store, VAT registration, calculation, and collection became fully automated at checkout, with Outpost assuming liability for any errors. The company’s founder, Jess Thorpe, described the result as making European selling feel equivalent to domestic selling once again — and noted the forward-looking value of having a platform that will automatically handle anticipated changes to EU de minimis rules without any internal effort.
The Market Opportunity and the Road Ahead
The structural case for what Outpost is building is difficult to argue against. Cross-border ecommerce is not a niche. It is the default mode of operation for any software company, subscription platform, or direct-to-consumer brand with international ambitions. And the cost of managing compliance in-house — which can exceed $2 million per market in local entity setup costs alone, taking over two years to execute — is prohibitive for all but the largest companies.
The problem has historically driven businesses toward one of two inadequate responses: either under-investing in compliance and accepting legal and financial risk, or over-investing in specialist consultants and local infrastructure that takes years to build and ages quickly as regulations shift. Outpost’s argument is that neither response is necessary when a platform is able to absorb the liability and automate the execution entirely.
Over the coming months, the Series A proceeds will be directed toward accelerating product development, expanding jurisdictional coverage, and growing the team to meet rising demand. The company currently supports merchants across Europe, North America, Latin America, and Asia — a geographic footprint it intends to extend as more markets impose stricter enforcement of indirect tax obligations on international sellers.
The trajectory from seed to Series A in under a year, backed by investors whose track record includes the most successful fintech companies of the last decade, suggests that Outpost is building something the market has been waiting for. In a trading environment where the rules change faster than any compliance team can manually track, the case for outsourcing that burden entirely — to a platform with legal skin in the game — may be the clearest value proposition in global commerce infrastructure today.
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By: Montel Kamau
Serrari Financial Analyst
11th March, 2026
