Background
Powered by open banking, account-to-account (A2A) payments enable consumers to make real-time payments directly from their bank account to another, eliminating the risk of card fraud for the consumer and reducing costs and lengthy settlement times for the merchant. With no middlemen, no card rails, and no unnecessary fees, this has huge potential to transform the retail payments landscape in particular.
Currently, merchants have to pay between 2% and 8% of every sale to card, e-wallet and BNPL facilitators — costs that are ultimately paid by consumers in higher prices. The impact of these high transaction fees on merchants, totalling $100 billion annually according to McKinsey, recently took centre stage in a public dispute when Amazon warned it would stop accepting UK-issued Visa credit cards at its checkout unless Visa lowered its fees. Despite reaching an eleventh-hour solution, the initial rejection from the retail giant only signals the current direction of travel: a shift away from card-on-file towards account-on-file transactions.
How are we working together?
Yapily Payments is enabling Volume to facilitate direct A2A payments between consumers and merchants through the power of open banking. Using Volume’s online payment solution, Transparent Checkout, shoppers are relayed to their banking app’s biometric authentication check, and the money is instantly settled with the merchant.
By partnering with Yapily, Volume is helping to eliminate fees based on a percentage of the total basket and drive online transaction costs close to zero.
“We want to do for ecommerce payments what Transferwise and WorldRemit did for currency exchange. Today’s online shopping experience is broken for merchants and their customers. Only last week Mastercard and VISA announced they are raising fees for merchants. By partnering with Yapily, Volume is slashing the cost of doing business online and creating a transparent, inclusive and financially sustainable way of enabling payments that work for everyone.” - Simone Martinelli, co-founder and CEO at Volume
“Volume is solving payment pain points for merchants in the UK and across Europe. We’re delighted to support this community and help Volume to deliver the benefits of open banking to businesses as they continue to grow.” - Stefano Vaccino, CEO and Founder at Yapily
Who is Volume?
Volume is a London-based payments fintech startup on a mission to create a universal checkout experience that works for both consumers and merchants alike. Volume was founded in May 2021 by Simone Martinelli and Krzysztof Tarnawski, who spent the last 10 years in fintech organisations such as Level39, Mastercard, and HSBC.
