Volume Secures $6 Million To Boost A2A Payment Services
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Payments startup Volume has raised $6 million to expand its account-to-account (A2A) payment services. The funding round was led by United Ventures, with support from Fabrick and existing investors like Firstminute Capital, SeedX, and Haatch.
These investors showed their confidence by increasing their support. Volume reported that it now processes over $126 million in annualized Gross Merchandise Value (GMV) in less than eight months and aims to grow its services across the UK and Europe.
Volume Aims To Cut Fees And Boost Bank Payments
Volume explained that traditional payment services like PayPal, Apple Pay, and Stripe charge fees between 2% and 8%. These fees often affect small and medium-sized businesses (SMEs) the most.
Larger companies can negotiate lower fees with payment providers like Visa and Mastercard. Volume’s goal is to remove these fees for businesses and consumers through A2A payments.
However, Volume noted that A2A payments face challenges. These include technical issues, customers’ preference for cards, and the need for refunds and multi-currency support.
The company pointed out that debit card payments handle $17.84 trillion in global GMV, but only $525 billion of that comes from A2A payments. This shows a large potential for growth.
Volume’s founder and Chief Executive Officer, Simone Martinelli, said that while open banking has created the conditions to lower payment costs, many A2A companies have struggled to use this opportunity.
Martinelli explained that Volume has solved this by improving the experience for both businesses and consumers. He added that Volume’s system is faster, safer, and focuses on both sides.
He also stated that Volume’s progress proves that bank payments can succeed as a business model and that the company is close to being profitable.
Martinelli compared Volume’s growth to Stripe, which helped move businesses from cash to card payments. He said Volume aims to lead the shift from card payments to bank payments and believes businesses could save up to $44 billion each year if more people use Volume’s services.
Payments Startup Volume Delivers Fast, Safe, And Low-Cost Bank Transactions
The company’s technology offers a smooth payment process for both businesses and users. Volume reported that its one-click checkout works with thousands of banks worldwide. Payments are completed in less than a second.
Users pay directly from their bank accounts using biometric authentication, without needing cards, user IDs, or passwords. Volume said this method is simpler, safer, and cheaper compared to traditional payment services.
Paolo Gesess, Founder and Managing Partner at United Ventures, praised Volume’s leadership team, mentioning Simone Martinelli and Chris for their clear vision. He also highlighted the company’s ability to grow GMV by 163 times in one year.
Gesess said Volume’s strong team and advanced technology put it in a good position to keep growing and changing how payments work globally.
Volume recently added key experts to its team. Justin Sebok, who previously worked at Curve, joined to improve product and operations.
