Search
Close this search box.

New Funding of Six Million Positions Volume to Challenge Established Players in Digital Payments

Introduction

The payments fintech startup, Volume, has raised $6 million in a round led by United Ventures. Fabrick, the open finance platform part of the Sella Group, and existing investors Firstminute Capital, SeedX, and Haatch, who doubled down on their support, also participated. The company is transforming online payments with account-to-account (A2A) technology. Volume has successfully achieved product-market fit and processed over $126 million in annualized Gross Merchandise Value (GMV) in under eight months. Currently, the company is concentrating on expanding its operations in the UK and Europe, in order to continue its mission to eradicate payment fees for both businesses and consumers.

Traditional payment companies, including PayPal, Apple Pay, and Stripe, impose transaction fees that typically are transferred to end users. These fees range from 2% to 8%. Small and medium-sized enterprises (SMEs) are particularly affected by this phenomenon, as larger companies are granted preferential agreements with providers such as Visa and Mastercard. Although account-to-account (A2A) payments have the potential to eliminate these fees, its adoption by end users has been sluggish due to the necessity of providing essential services such as refunds and multi-currency support, as well as technical integration challenges. Additionally, consumers have a strong preference for card-based methods. The potential to transition from debit card payments, which presently generate $17.84 trillion in global GMV, to real-time payment networks is substantial. However, A2A payments have only processed $525 billion in GMV thus far, indicating that there is substantial potential for growth.

Volume’s solution resolves these obstacles by offering a one-click transaction that is integrated with all banks worldwide, thereby eliminating complexity and delivering a top-tier user experience. Volume’s embeddable widget necessitates only five lines of code to be integrated, thereby expediting and simplifying the enrollment process for businesses and platforms, including Know Your Business (KYB) processes. This simplifies the adoption process for businesses. It addresses critical sore points for both consumers and platforms, offering a secure and intuitive payment process for users. Ultimately, this leads to substantial cost savings for both merchants and consumers.

Volume’s technology guarantees a payment experience that is both instantaneous and seamless for both consumers and platforms. Users can pay directly from their bank accounts on any device by integrating with Volume, and the entire process can be completed in under one second. Through its infrastructure partner, Yapily, Volume employs open banking rails to establish connections with thousands of institutions, thereby facilitating instant account-to-account (A2A) payments. Payments are securely completed without the necessity of user IDs, passwords, or cards through biometric authentication in the user’s banking app. The low, flat-rate pricing model of Volume simplifies payment processing and eliminates costly intermediaries, resulting in a significantly cheaper and quicker alternative to traditional methods.

Key industry executives have been recruited by Volume to facilitate growth. Justin Sebok, who was previously the Head of Product at Curve, has joined in order to improve the product and operations. Richard Frenken, who was instrumental in PayPal’s acquisition of iZettle for $2.2 billion, has been appointed as the Vice President of Revenue. He brings a wealth of experience in the expansion of PayPal’s business in the small and medium-sized enterprise (SME) sector. Shannon Krishna has joined Volume to further enhance the regulatory capabilities of the company, having previously led compliance initiatives at Luno and WorldRemit.

Volume is on the verge of profitability and is striving to secure FCA regulation in the United Kingdom. The company has also identified product-market fit and has established a robust management team. Additionally, Volume has plans to expand into Europe through a new license. The funding will facilitate the expansion of operations in the United Kingdom and Europe, while also enabling Volume to capitalize on potential opportunities that may arise if regulators are successful in granting access to NFC technology that is presently under Apple’s control.

Read: Transform Your B2B Strategy with Innovative Invoicing Solutions

Industry Comments

Simone Martinelli, founder and CEO of Volume, said: “Open banking has laid the groundwork to reduce payment costs by creating the necessary conditions, but most A2A payment companies haven’t been able to leverage this potential. At Volume, we’ve cracked the problem. We’re solving the adoption challenges of account-to-account payments by focusing on the user experience for both businesses and consumers, offering a faster, more secure solution that puts both parties first. Our traction shows that pay-by-bank can be a scalable business model, and we’re close to profitability with a clear product-market fit in cross-border payments. Like Stripe did with the shift from cash to card, we’re leading the transition from debit cards to bank payments in open banking, while growing sustainably. If widely adopted, Volume could save businesses up to $44 billion per year.”

Paolo Gesess, Founder & Managing Partner at United Ventures, said: “Volume stands out not only because of the exceptional leadership from Simone and Chris, but also because of the top-tier hires they’ve made, bringing in deep expertise across the fintech and payments landscape. Their ability to grow GMV by 163x over the past year validates the enormous opportunity ahead. While some players in the space have encountered bottlenecks, Volume’s combination of a strong team and cutting-edge technology positions them to scale sustainably. We see tremendous potential for Volume to reshape how transactions are handled globally.”

FAQs

1. What makes Volume’s payment solution unique? Volume’s payment solution simplifies account-to-account (A2A) transactions by integrating seamlessly with banks worldwide. Its embeddable widget requires just five lines of code, allowing businesses to adopt it quickly and efficiently. By addressing key issues like refunds and multi-currency support, Volume provides an intuitive and secure user experience. Additionally, payments are authenticated biometrically and processed in under a second, ensuring speed and security. This innovative approach eliminates costly intermediaries, resulting in significant savings for merchants and consumers alike.

2. How does Volume address challenges faced by traditional payment systems? Traditional payment systems impose fees of 2% to 8% on transactions, disproportionately affecting small and medium-sized enterprises (SMEs). Volume eliminates these fees through real-time A2A payments, bypassing intermediaries like Visa and Mastercard. Its low, flat-rate pricing model ensures cost efficiency. The platform’s integration process is streamlined, and its secure payment system guarantees user convenience. By leveraging open banking rails and biometric authentication, Volume offers a cheaper, faster, and more reliable alternative to card-based payments.

3. What are Volume’s plans for expansion? Volume is focusing on expanding its operations in the UK and Europe. The company aims to secure FCA regulation in the UK and obtain a new license to support its European growth. With plans to capitalize on opportunities arising from regulatory advancements, including potential access to Apple’s NFC technology, Volume is positioned to scale its operations. The recent $6 million funding round will further support these expansion efforts, enabling Volume to enhance its infrastructure and grow sustainably.

4. Who are the key industry experts driving Volume’s growth? Volume has brought in top talent to accelerate its growth. Justin Sebok, former Head of Product at Curve, focuses on improving product and operations. Richard Frenken, with experience in PayPal’s acquisition of iZettle, serves as Vice President of Revenue. Shannon Krishna, with expertise in compliance from Luno and WorldRemit, enhances the company’s regulatory capabilities. Together, these executives bring a wealth of knowledge and experience, positioning Volume for sustained success in the fintech space.

Read: AI in Insurance

Conclusion

Volume’s innovative account-to-account (A2A) payment solution is set to revolutionize the fintech landscape. By eliminating intermediaries and transaction fees, Volume provides a faster, more cost-effective alternative to traditional payment systems. Its cutting-edge technology ensures seamless integration and a superior user experience, benefiting both businesses and consumers.

The company’s focus on growth is evident through its recent funding success, strategic hires, and expansion plans in the UK and Europe. With a mission to transform online payments, Volume is addressing critical pain points in the industry and paving the way for widespread adoption of A2A payments. The team’s expertise and commitment to innovation position Volume as a leader in the transition from card-based to real-time bank payments.

As Volume moves closer to profitability and secures regulatory approval, its impact on the payments industry will undoubtedly grow

To participate in our interviews, please write to us at news@intentamplify.com

Top Fintech Stories:

 

 

 

Share With
Contact Us