US-based payout solutions provider Verituity has secured $18.8m in a funding round led by Sandbox Industries and Forgepoint Capital.

The financing round also saw the participation of Ardent Venture Partners and MTech Capital.

Sandbox Industries co-CEO and managing partner Chris Zock said: “Verituity is a perfect example of the types of companies we seek to partner with that provide meaningful innovation to insurers and healthcare companies.

“From agent and broker payments to claims, Verituity’s unique approach to embedding verification into payouts and handling the complexity of connecting legacy treasury systems to digital payments is transformative for the industry.”

Verituity will utilise the new capital to expedite its growth in banking and insurance. In addition, the payout solutions provider intends to expand into new markets, including mortgage servicing and energy.

The latest investment will also allow Verituity to advance its innovation of its machine learning and artificial intelligence (AI) models that are essential for the company’s Zero Trust Payout Verification and intelligent payments.

Based in Virginia, Verituity offers a payout platform that facilitates smart and verified business-to-business (B2B) and business-to-consumer (B2C) payout solutions for banks and enterprises.

The platform ensures on-time digital payments to the correct payee and payment account from the appropriate funding account by verifying every payer, payee, account, and transaction. This approach adds intelligence to each disbursement, minimising risks, and optimising payout economics consistently.

Verituity CEO Ben Turner said: “Verituity orchestrates billions of dollars in verified B2B and B2C payouts by empowering businesses and banks to deliver trusted and intelligent payments on-time to known individuals and businesses.

“I look forward to working with our investors as we continue our journey to finally eliminate checks and embed intelligent, verified payouts into the fabric of business disbursements.”

Verituity’s funding announcement follows the company’s recent partnership with Mastercard Move, aimed at providing a white-label solution for commercial banks and payers to transform their disbursements and remittances.

According to Verituity, the integration will facilitate secure, verified, and near real-time payments that better address customer requirements and are more cost-effective than conventional methods.