‘We Aim To Be The Financial Technology Backbone For MSPs’

‘Many MSPs, especially smaller ones, struggle with finance and accounting,’ says Alternative Payments CEO Baxter Lanius. ‘The’re either managing books in-house or using outsourced accountants unfamiliar with the MSP model. There’s also a disconnect between PSA and accounting software data. We aim to align those systems, reduce manual work and give MSPs more visibility into their financial health.’

MSP-focused Alternative Payments has bold ambitions to modernize the B2B payments landscape.

“We’re here to make online payments seamless and powerful for MSPs,” Baxter Lanius, Alternative Payments CEO, told CRN. “Everything we build is with them in mind. We’re not just a tech company, we’re a partner to help MSPs scale faster, smarter, and more securely.”

Founded officially in 2021 but rooted in a private equity journey dating back to 2014, Alternative Payments has grown from a one-person operation to a 45-person team serving more than 500 MSPs. Now, the New York-based company is processing nearly $1 billion in annualized payments.

The idea for Alternative Payments emerged while Lanius was investing in IT services companies through a private equity fund. Watching the rise of fintech giants, he noticed a gap, one that specifically affected the MSP sector.

“Many MSPs, especially smaller ones, struggle with finance and accounting,” he said. “They’re either managing books in-house or using outsourced accountants unfamiliar with the MSP model. There’s also a disconnect between PSA and accounting software data. We aim to align those systems, reduce manual work and give MSPs more visibility into their financial health.”

With $22 million in fresh funding led by MissionOG and Third Prime, the company is charging into its next growth phase. The capital will be used to expand beyond payment automation, scale its go-to-market teams and enhance customer success operations.

“The first key component of the fundraise is product development,” Lanius said. “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 major investment area, Lanius added, is customer success infrastructure: “We want to offer the best support in the market, and we’re investing in that.”

By the end of the year, Alternative Payments plans to grow its team from 45 to 80 employees. The company also plans to increase investments in community-building, live events and educational resources tailored to the MSP sector.

“We see this as more than just a product. It’s a movement to bring modern, intuitive financial solutions to an underserved segment,” Lanius said. “We want to be the go-to financial platform for every MSP.”

CRN spoke further to Lanius about the company, its competition and what MSPs can expect from Alternative Payments over the next one to two years.

What problem is Alternative Payments solving for MSPs?

We address both accounts receivable and accounts payable inefficiencies. Many MSPs still rely on checks or disconnected systems, leading to manual workloads and inconsistencies. Our software automates payment workflows and ensures integration between their PSA (professional services automation) tools and accounting systems. The end goal is to bring all payments, online and offline, into one streamlined, intelligent platform.

What makes your solution stand out from others in the market?

We differentiate ourselves in three main ways. We have all-in-one payments where we support credit card, ACH (Automated Clearing House) and financing options. The second is automation and flexibility. Our UI/UX is modern and customizable and MSPs can adjust schedules, send auto-reminders and track client payment behavior without paying for extras. Third is customer support: Unlike competitors with three-day ticket responses, we reply within 10 minutes. We’ve even hired consultants for clients to ensure proper system integrations.

What’s on the roadmap for the next two to three years?

In the short term, we want to finalize our AR product. We then want to launch an AP solution to help MSPs automate payments to vendors with rule-based workflows and approval systems. And then in the long-term, we plan to introduce financial tools like business bank accounts and credit cards tailored for MSPs.

What trends are you seeing shape the future of B2B payments?

The decline of check usage, which is still 30 percent of B2B payments, will continue. Check fraud is up and automation is in. Within two to three years, I see most B2B payments handled by AI-enhanced systems that automate wires, ACH and credit card transactions, freeing finance teams to focus on strategy rather than clerical tasks.

What’s your long-term vision for Alternative Payments?

We aim to be the financial technology backbone for MSPs. By simplifying how money moves in and out of their business, we free them up to focus on what they do best, serving clients. If we succeed, finance becomes less about manual entry and more about strategic reporting.

You’re looking into expanding to new markets as well. What’s the timeline for launching in Canada and the UK?

Canada is up first. We’re aiming for an early Q3 launch there. The UK will follow in mid-Q3. We’re excited to bring our offerings to these new markets and help MSPs accelerate their payment cycles abroad.

What innovations are most exciting to you in the alternative payments market?

I’m particularly excited about combining autonomous money movement with AI agents. For example, instead of static email reminders, AI can tailor follow-ups based on each client’s payment history. We’re building tools that not only manage when clients pay but also how, and adapting communication and payment options accordingly. We’re also working on dynamic checkout flows. If a client typically pays by credit card, we prioritize that method to speed things up. This personalization leads to faster payment cycles cutting the average MSP invoice collection time from 36 days to around 18 to 19. And as we keep innovating, we think that could drop to 15, even 10 days.

With security being a major concern, how does Alternative Payments ensure customer data is safe?

Security has been a priority since day one. We’re SOC 2 Type 2 compliant and working toward PCI (payment card industry) compliance even though we don’t handle card data directly, everything is tokenized. We’re proactive about education too. We teach clients about ACH whitelisting, blocking and risks around check fraud. MFA (multi-factor authentication) is required across our platform to prevent account takeovers. Plus, we have both internal and external teams dedicated to infrastructure security.

What are the biggest challenges you’re facing as CEO?

Culture is one. Scaling from a 45-person team while keeping our values intact is critical. Culture drives performance, not just software. The second is the MSP market itself. MSPs are demanding, they want high-quality services but are price-sensitive. So we’re investing heavily in support. We now have the largest support team in the MSP-focused fintech space, with 10 full-time members. That commitment helps us grow without compromising on service.

Are you open to collaborating with other vendors in the space?

Absolutely, but it’s been harder than expected. Many vendors seem hesitant to partner. We believe collaboration is the future, especially for smaller vendors. Bundled offerings like quoting plus payments can offer great value. We’re building a dedicated partnerships team and actively looking for opportunities, even if success has been limited so far.

What can MSPs expect from Alternative Payments throughout the rest of 2025?

More innovation, more support and a relentless focus on helping MSPs grow. We’re committed to getting your clients to pay faster, boosting your cash flow so you can reinvest. We pride ourselves on accessibility and our whole team, including myself, is always open to feedback. This is just the beginning of what we’re building for the channel.