Real-time payments platform Volt has obtained an Electronic Money Institution (EMI) licence from the Financial Conduct Authority in the UK.
This licence marks a step forward for Volt as it enables the evolution of its cash management product, Connect. Under the new licence, virtual accounts will be issued to merchants, facilitating account-to-account payments from their customers. These virtual accounts offer real-time payment confirmation, granting merchants enhanced visibility and control throughout the payment process.
Additionally, Volt will now be able to offer virtual accounts as a standalone product. These accounts cater to enterprises requiring fund management and complex reconciliation processes, particularly those not in need of payment initiation functionality at checkout. Examples include global online travel agents managing bulk payouts to local suppliers across various jurisdictions.
The official press release cites research conducted by Bottomline in 2023, which revealed that 50% of businesses in Great Britain identified insufficient control over payment processing and a lack of payment visibility as their top challenges in executing payments. With Volt's solution, merchants can track payment statuses, addressing challenges and delays not typically managed with traditional bank transfers.
Representatives from Volt talked about these new developments and emphasised their significance for the company's expansion efforts in the UK and Europe. They also highlighted the licence's role in widening Volt's product set and enhancing its commercial offering, citing benefits already observed by key customers.
Established in 2019, Volt is focused on building the infrastructure for global instant payments. Its open payments gateway facilitates secure transactions between accounts held at over 5,000 banks in the UK, EU, and Brazil. Volt's unique aggregation model ensures extensive open payments reach while maximizing transaction speed, security, and resilience.
In February 2024, Volt announced a partnership with Bumper in order to provide Open Banking services to major car dealerships in the UK and Europe. Following this announcement, customers and clients gained the ability to use Open Banking and real-time payments in order to pay for vehicle deposits, repairs, parts, and solutions, as well as purchase vehicles outright.
The strategic deal also addressed an important pain point for dealerships by eliminating frictions caused by slow settlement times. As customers are provided with the freedom of knowing that payments are settled instantly, dealerships gain improved control over their cash flow and inventory. Volt’s integration is available for customers and partners in the region of the UK, with plans to launch in more European countries in the future, as part of Bumper’s European expansion strategy.
For more information about Volt, please check out their detailed profile in our dedicated, industry-specific Company Database.
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