- The volume aims to put an end to the “hidden Internet tax”, which is 2% -8% that debit and credit card facilitators, ewallets and BNPL take for every online transaction
- Volume is the first to leverage the variable recurring payment mandate to significantly accelerate open banking-enabled online account-to-account (A2A) payments and eliminate those 2% -8% costs
- The end-to-end checkout process is a seamless, personalized checkout experience that cuts down on steps in the checkout process and takes less than a second, making it five times faster than traditional e-commerce payments
LONDON, UK (May 3, 2022) – Volumethe transparent checkout startup, closed a $ 2.4 million pre-seed round, in an over-underwriting deal led by capital of the first minute and joined SemeX And Haath Ventures. Other attendees include angels Christian Faes (LendInvest), Russ Carroll (ex-Klarna), as well as angels of MADE.COM, Mastercard, Visa and American Express. The volume enhances current open banking capabilities to reduce the lengthy checkout process while eliminating the hidden fees charged by payment intermediaries.
Current online payment methods are expensive and outdated, holding back the growth of the $ 5 trillion e-commerce market. Today, merchants pay between 2% and 8% of each sale to debit and credit card facilitators, ewallets and BNPL. This ultimately affects the final consumers who end up paying higher prices. In addition to a generally flawed checkout experience, today’s complex, slow, and wary payment technology contributes to an overall 69% cart abandonment rate.
Volume radically improves today’s disrupted customer experience by creating a more transparent payment infrastructure that brings transaction costs down to zero. At the same time, it offers a seamless checkout experience for online shoppers. Volume is the first to leverage the variable recurring payment mandate to significantly accelerate account-to-account (A2A) online payments enabled for open banking. In addition to eliminating the need for payment processing intermediaries and expensive third parties, it eliminates a number of steps in the payment process. The volume detects the preferred bank shoppers they pay with and forwards them to a biometric security check in their banking app to finalize the purchase. The end-to-end checkout process is a personalized checkout experience that takes less than a second, making it five times faster than traditional e-commerce payments.
Simone Martinelli, founder and CEO of Volume, says: “Instead of yet another one-click checkout, Volume is building the world’s first transparent checkout. E-commerce has a “hidden fee” in the form of payment fees on cards and e-wallets, and consumers are unaware that this ultimately affects the prices they pay. We want to finally bring transparency to this huge market and kill all the hidden fees. What Transferwise has done for cross-border payments, we will do for online payments. We estimate that if every merchant implemented our solution, the e-commerce industry could save $ 800 billion in commission. “
For merchants, the integration with the Volume solution is simple and instant. Once integrated, Volume allows consumers to pay online from any device directly from their bank accounts. After the biometric check, the payment is instantly settled with the merchant, without the need for a card, user ID or password. The innovative low-cost flat rate model for online payments replaces commissions based on a percentage of the total basket. To do this, it leverages the open banking rails provided by its infrastructure partner Yapilywhich allows connectivity to thousands of banks.
Volume was founded by fintech veterans Simone Martinelli and Krzysztof Tarnawski, who have spent the past 10 years working at Level39, Mastercard, HSBC and WorldRemit. The startup has already engaged more than 50 retail traders, food delivery and digital markets in the UK. Fintech will use the new funding to expand its UK business before looking to the rest of Europe and North America. Volume is headquartered in London and an office in Krakow, Poland.
Arek Wylegalski, Partner of firstminute Capital, comments: “Volume is seizing the opportunity created by open banking to enable a new, improved e-commerce payment experience. The high interchange fees that have long been considered normal in this $ 5 trillion market are finally disappearing. Having supported Revolut at a similar stage in the past, I believe in Krzysztof and Simone’s unique mix of fintech know-how, technical talent, relentless customer focus and ambition to get the job done. Operating between London and Krakow, they can tap into the world-class fintech talent London is renowned for as well as excellent engineering talent in Poland. We are excited to play a role in enabling their future success. “
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Notes to editors
Speaking of volume
Volume is a London-based payments fintech startup with a mission to create a universal internet payment experience that is transparent and fair and works for both consumers and merchants. The volume aims to fundamentally improve today’s disrupted customer experience at online checkouts and eliminate hidden fees that inflate prices and curb the e-commerce industry. Building on open banking, its online payment solution, Transparent Checkout, facilitates direct account-to-account payments between the bank accounts of online merchants and shoppers, eliminating middlemen and reducing transaction fees by up to 75%.
Contrary to card-based payment methods such as PayPal, Fast.co, Bolt, ShopPay, Volume is leveraging open banking infrastructure to unlock further growth in e-commerce constrained by traditional card-based payment infrastructure.
Introductory video: https://www.youtube.com/watch?v=8cKEvOY_2vI
About the capital of the first minute
firstminute Capital is a $ 315 million AUM venture fund that invests in seed stage technology companies. firstminute is industry independent and invests in the UK, Europe and the US. Backed by over 120 unicorn founders and founded by Brent Hoberman (founder of lastminute.com, made.comFounders Forum) and Spencer Crawley (Goldman Sachs, DMC Partners) in 2017, firstminute invested in over 100 companies.
Seed X Liechtenstein is a European-focused venture capital with roots in Liechtenstein. They help startups grow by providing a powerful network of experienced entrepreneurs and industry leaders. In addition, they combine comprehensive technological, financial and industrial know-how which they pass on to their founders.
Haatch is an investment business that supports digital companies focused on early stage growth. Founded by Scott Weavers-Wright and Fred Sonaya in 2013 as an angels co-investment joint venture under the “Haatch Angel” brand. Haatch Ventures was born in September 2018 and was thrilled to welcome Simon Penson (founder of Zazzle Media) and Mark Bennett (VP for Android GTM for Google) as partners. It has since successfully launched Haatch EIS Funds in 2018 and Haatch SEIS Funds in 2021.
Volume Payments secures £ 1.92 million Pre-Seed investment led by firstminute Capital – UK Tech Investment News
Source link Volume Payments secures £ 1.92 million Pre-Seed investment led by firstminute Capital – UK Tech Investment News