Driving payment fees to zero. Our investment in Volume
December 17th, 2024
Every major shift in payment technology has given rise to $10B+ companies, and we believe Volume can be one of them. We are excited to have led their $6 million funding round, joined by Fabrick—the open finance platform under the Sella Group—and existing investors Firstminute Capital, SeedX, and Haatch. Having processed over $126 million in annualized Gross Merchandise Value (GMV) within just eight months, Volume is scaling operations across the UK and Europe to eliminate payment fees for businesses and consumers.
Simone Martinelli and Krzysztof (Chris) Tarnawski are tackling the high transaction fees charged by traditional payment providers like PayPal, Apple Pay, and Stripe. Businesses lose up to $135 billion annually to fees ranging from 2% to 8%, often passed on to consumers. Volume’s Account-to-Account (A2A) payment solution reduces these fees to below 1%, bypassing costly card networks and benefiting businesses and consumers.
Volume’s innovative platform delivers faster, cheaper, and more secure payments. Its software development kit seamlessly integrates with e-commerce platforms, offering features like streamlined payment processing, cash flow dashboards, payment links, refunds, and forex capabilities.
We invested in Volume for several reasons. First, the founders bring over a decade of combined experience in payments and Open Banking, showcasing a unique ability to attract top talent (with recent key hires from Curve, iZettle, and Luno) and execute their vision effectively. Second, the market demand for lower transaction fees and faster, more secure payment options is undeniable. Merchants are eager for solutions that reduce costs, while consumers value improved checkout experiences. Global A2A transaction value surpassed $525 billion in 2022 and is projected to grow at a 13% CAGR through 2026. Third, Volume has delivered a market-ready product with advanced features, positioning it as a substantial payment landscape competitor and scaling GMV by 163x in just one year. Lastly, regulatory tailwinds, such as the EU’s PSD2, enable direct bank-to-bank payments, reduce fees, and accelerate settlement times. With nearly 70 real-time payment schemes globally, A2A payments are becoming the norm.
Volume’s scalable technology leverages multiple Open Banking networks for easy cross-border expansion. Its one-click checkout system enhances user experience by automatically identifying a payer’s bank, increasing merchant adoption, and reducing reliance on costlier alternatives.
The payments industry has evolved in waves: from card networks like Visa and Mastercard, to cloud platforms such as Adyen and Stripe, to mobile payments like CashApp and Apple Pay. We believe Open Banking is driving the next wave, eliminating the need for physical or online cards.
With an established product-market fit and a strong management team, Volume is on the path to profitability. It is uniquely positioned to lead the next wave of payment innovation, driven by its laser focus on Open Banking rails and commitment to lowering costs for businesses and consumers. Their advanced checkout technology and exceptional execution have helped them carve out a distinct place in the market. The team is also working toward FCA regulation in the UK and planning European expansion through a new license. This funding will accelerate their growth across the UK and Europe while positioning them to capitalize on potential regulatory shifts, such as opening access to NFC technology currently controlled by Apple.
Congratulations to Simone, Chris, and the entire Volume team. We proudly welcome you to the United Ventures portfolio and look forward to supporting your transformative journey.
