Japanese Shipping Company Expands Fintech Services
The Japanese shipping company, Nippon Yusen Kabushiki Kaisha (NYK Line), has acquired Kadmos, a German salary payment platform for seafaring workers. This move is part of NYK’s plan to expand its fintech services in the maritime sector.
What is Kadmos?
Kadmos was founded in 2021 by MIT alumni Justus Schmueser and Sasha Makarovych. The platform provides businesses, including shipowners and ship management companies, with affordable and transparent options for transferring salaries internationally, specifically for seafaring workers.
NYK’s Fintech Services
In 2019, NYK launched a financial services platform called MarCoPay in Manila, the Philippines. MarCoPay offers loans and insurance for Filipino seafaring workers and their families. Since its launch, NYK has collaborated with shipowners and ship management companies and has acquired an Electronic Money Issuer (EMI) license from the Philippine central bank.
Acquisition and Expansion Plans
NYK approached Kadmos for the acquisition as part of its plan to grow its digital payment business beyond the Philippines. The company plans to incorporate the Kadmos platform into MarCoPay, providing payroll solutions to seafaring workers of all nationalities. Kadmos also plans to expand its capabilities beyond payroll to offer cross-border B2B payments and corporate cards.
Future Plans
Kadmos intends to expand its remit to also service the cruise industry and wants to offer additional financial services for shipping companies and seafarers through a partnership with NYK. The company’s team will stay with Kadmos, with slight adjustments to the management structure.
What Sets Kadmos Apart?
There are several digital payment platforms available for maritime companies, such as MarTrust, ShipMoney, and Brightwell. However, Kadmos stands apart due to its end-to-end reach, featuring virtual point-of-sale devices and peer-to-peer transfers. The company’s cards are non-personalized and have the widest acceptance, allowing companies to roll out Kadmos to their ships quickly without complicated card logistics.
Competitive Advantage
Kadmos pricing is built in an extremely flexible way, allowing companies to cover fees for their crew in a very personalized way while staying compliant with regulations by the Maritime Labor Convention. This sets Kadmos apart from its competition, which simply charges a monthly SaaS fee.
Funding and Growth
Kadmos most recently raised a $29.5 million Series A round in 2022, bringing its total capital raised to $38 million. The company now has more than 40 enterprise customers.
Conclusion
The acquisition of Kadmos by NYK Line marks a significant expansion of the company’s fintech services in the maritime sector. With its unique features and flexible pricing, Kadmos is well-positioned to provide payroll solutions to seafaring workers of all nationalities. As the company continues to grow and expand its capabilities, it is likely to play a major role in shaping the future of digital payments in the maritime industry.
