IVP, a Silicon Valley-based firm with a 40-year track record of backing firms like as Coinbase, Slack, and Klarna, led the funding round. CommerzVentures, a new investor, is joining existing funds such as EQT Ventures, Augmentum Fintech PLC, and Fuel Ventures in this Series B investment.
The funds will be used to grow into new foreign markets such as APAC and the Americas, as well as to assist product development in Europe, the UK, and Brazil.
Volt, which is now accessible in the UK, Europe, and Brazil, intends to introduce its real-time payments technology to APAC, with an Australian market entrance scheduled for later in 2023, as well as the US. To continue developing for clients, the firm intends to use this Series B investment to expand its acceptance network and worldwide reach, extend its product suite to include cash management, and considerably strengthen its product and technical teams.
Volt is a worldwide real-time payments provider that is paving the way by connecting new generation account-to-account (A2A) payments infrastructure to a single point of access. Volt's recent successes include a global relationship for real-time payments with Worldpay from FIS and partnering with Shopify to become the commerce platform's first Open Banking supplier.
The series of partnerships follows rising merchant demand for Open Banking technology and reflects recent numbers indicating that Open Banking usage in the UK has reached a milestone of seven million consumers and SME customers. Businesses seeking lower payment infrastructure costs, low-to-no fraud rates, real-time settlements, and the ability to provide clients with a high-quality user experience are driving growing merchant adoption.
Volt takes a customer-first approach, designing solutions to unique company requirements and providing personalised assistance throughout the collaboration. This guarantees that organisations obtain tailored solutions that meet their specific needs, resulting in increased efficiency and effectiveness.
With the growth of Open Banking efforts and regulatory frameworks, a favourable environment for A2A payments has emerged. Financial organisations are obligated under Open Banking to securely exchange consumer data and encourage interoperability. This ecosystem may be used by A2A payment providers to build novel payment solutions, improve consumer experiences, and form strategic collaborations with banks and fintech businesses.
Furthermore, A2A payments have the potential to disrupt established payment incumbents and capture a sizable market share. Companies that provide A2A payment services may challenge the dominance of legacy players by delivering better ease, lower prices, and higher security as the digital transition continues to redefine the payments sector. This disruptive potential can position A2A payment firms for long-term success while also providing investors with attractive returns.
As a result of the growing need for quicker, more efficient payment solutions, as well as the legislative drive toward Open Banking, A2A payment providers have the ability to prosper and challenge established payment systems, giving them an intriguing investment option.
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