Modern Treasury expands on demand, readies for FedNow

Modern Treasury has expanded significantly over the past year as demand for its payments software increased, and it has plans for additional growth as it prepares to offer more real-time services, Chief Executive Dimitri Dadiomov said in an interview.

The San Francisco-based company provides software used in payments processing via ACH, wires and real-time payments. It currently caters to customers in the U.S. and Canada, including virtual card company Marqeta, the payroll software business Gusto and expense management firm TripActions.

Last September, the Modern Treasury workforce was about 75 employees. Over the next year, Dadiomov built out the engineering and product departments of the payments software company for a headcount today of about 180 employees, he said.

Now, he’s turning his attention to Modern Treasury’s sales staff. “Over the next 12-18 months, we’re definitely going to plan on building out our sales team,” Dadiomov said in an interview. He expects to hire about another 100 employees in that time period, he added.

The company is trying to position itself for clients’ increased real-time payments needs after the launch next year of the Federal Reserve’s new real-time FedNow network. Currently, corporate real-time payments in the U.S. mainly pass through The Clearing House, which is owned by major banks.

Part of the reason for the expansion is to gear up for providing additional services that will tap the new FedNow instant payment system that has been years in the making.

“We’re trying to invest in real-time payments early to make sure that we can be ready to support corporate clients as they’re ready to engage on FedNow,” Dadiomov said.

Modern Treasury has raised $183 million from venture capital investors, including $50 million in March from SVB Capital and the venture arm of the big sales software company Salesforce, according to a press release.

A spokesperson for the closely-held Modern Treasury declined to provide its annual revenue or profit figures.

Instead, the spokesperson said that customers’ payments flow using Modern Treasury services are about $2.8 billion per month. That’s nearly triple the $1 billion in transactions handled a year ago, the spokesperson said.

“In five years, we hope to be part of the critical infrastructure for a lot of businesses in the U.S.,” Dadiomov said. “Then, we’ll eventually go more international, As we serve larger companies, one of the promises that we sort of embedded within our products is that we can help with the entirety of your business.”