High-Level Overview
Forage is a mission-driven payments infrastructure company that enables businesses to accept government benefits, primarily EBT SNAP payments, through a single, unified API. Its core product simplifies the complex regulatory and technical challenges merchants face when integrating government assistance payments into their online and in-store checkout processes. By doing so, Forage expands access to groceries for over 42 million Americans relying on programs like SNAP, while helping merchants grow their sales by 15% or more. This infrastructure supports retailers, grocery stores, and online merchants, fostering a more inclusive digital commerce ecosystem that addresses food insecurity and promotes equitable access to essential goods.
From an investment perspective, Forage operates at the intersection of fintech, govtech, and payments, focusing on government benefits modernization—a sector with significant social impact and growth potential. Its technology-driven approach and USDA approval position it as a key enabler in the startup ecosystem, helping accelerate digital acceptance of public benefits and supporting underserved populations.
Origin Story
Forage was founded by Victor Fimbres (Co-Founder and CTO) and Ofek Lavian (Co-Founder and CEO), with a background rooted in payments technology and social impact. The idea emerged from recognizing the significant barriers merchants faced in accepting government benefits online, especially SNAP EBT, which traditionally required complex compliance and technical integration. Early traction came from securing USDA approval as a third-party payment processor and rapidly growing the number of SNAP households using online benefits from 35,000 in 2019 to over 12 million today. This growth reflects pivotal moments such as partnerships with grocery retailers and collaborations with platforms like eGrowcery, as well as proactive responses to federal funding uncertainties, including temporary relief programs during government shutdowns.
Core Differentiators
- Unified API for Government Benefits: Forage abstracts the complexity of integrating EBT SNAP payments, enabling merchants to onboard quickly and securely.
- USDA-Approved Third-Party Processor: The only USDA-approved third-party payment processor offering best-in-class software combined with dedicated service.
- Operational Support: Guides retailers through USDA authorization and compliance, reducing friction in merchant onboarding.
- Growth Impact: Enables merchants to increase sales by 15%+ by opening access to SNAP recipients.
- Mission-Driven Focus: Beyond payments, Forage aims to support overall health and wellness by broadening benefit acceptance to nutritious food and health essentials.
- Collaborative Ecosystem: Partners with grocery platforms (e.g., eGrowcery) and payment networks to expand reach and flexibility.
- Agility in Regulatory Environment: Maintains technological adaptability to navigate government program volatility and regulatory changes.
Role in the Broader Tech Landscape
Forage rides the trend of digital transformation in government benefits and social assistance programs, a sector historically underserved by modern fintech solutions. The timing is critical as online grocery shopping and digital payments have surged, especially among low-income populations relying on SNAP. Market forces such as increased federal focus on food security, the growth of ecommerce, and the need for inclusive financial infrastructure favor Forage’s model. By bridging public benefits with private commerce, Forage influences the broader ecosystem by enabling merchants to serve a large, often overlooked customer base, while pushing the payments industry toward greater inclusivity and compliance with government programs.
Quick Take & Future Outlook
Looking ahead, Forage is poised to expand beyond SNAP to support a wider range of government benefits related to health and wellness, potentially integrating other assistance programs into its platform. Trends shaping its journey include increasing digitization of public benefits, growing demand for online grocery access, and evolving regulatory landscapes. Forage’s influence is likely to deepen as it continues to innovate payment rails and partnerships, helping to ensure that government assistance programs remain accessible and effective in a digital-first economy. This positions Forage not only as a payments infrastructure provider but as a critical enabler of social equity through technology.
