Australian real-time merchant payments (A2A) platform Zepto on Monday said it had raised A$25 million Series A (about $18.8 million) led by AirTree Ventures and Decade Partners.
The Instant Payment Platform allows merchants to make, manage and receive secure payments by directly connecting between the payer’s bank and the merchant’s bank.
Series A funding comes after a 10x year-over-year revenue growth in the four years since its launch in 2018. The company, which did not provide baseline data for this development and its valuation, says it is facilitating more than $4 billion in payments. It is expected to handle over $50 billion per month and payments this year.
More than 100 Australian organizations, including banks, fintech companies and credit unions, use nuclear plant (new payment platform), Australian open access infrastructure for faster payments, according to the NPP website. nuclear plant to pay is a new digital tool for merchants and businesses to initiate real-time payments from customer bank accounts.
Zepto becomes the first non-bank Approved as an NPP partner in October. This means that Zepto can directly connect its customers to the PayTo NPP service, which will be launched in mid-2022.
“Real-time data rich payments is how we do direct transactions between bank accounts and Australian politicians have recognized this with the rollout of Payto NPP which will replace direct debit in about 3-5 years. , CEO of Chris Jewel Zepto. “The payment preferences of merchants and consumers are moving away from costly legacy payment methods like credit cards and the slow, blind traditional direct debit.”
There will be a whole generation of consumers who will never have a credit card or purchase approval, pay later, but bank accounts are ubiquitous and direct payments among them are a simple, clean and efficient way to pay for things,” continued Jewell. .
Real-time payments through Australian NPPs accounted for 31% of all payments between accounts in October 2021, according to Jewel. He said the total cumulative value of NPP payments since its launch in November 2017 was about $2.6 billion.
Jewel said account-to-account (A2A), which refers to a transaction between bank accounts, does not require a card or PIN. While debit cards are usually managed by Visa and MasterCard, A2A cuts them off as an intermediary.
according to this FIS Global Payments Report A2A payments will account for 20% of all e-commerce payments by 2020 and will surpass credit and debit cards by 2023.
Zepto serves hundreds of Australian businesses including lenders, merchant/crypto platforms, third party processors, technology companies, travel and travel companies. Binance Australia, Superhero, Novati Group, Nimble, Powerpay, Till Payments, Bluestone, Rentbetter, Biz Pay and Get Blys are among its clients.
Jewel said the startup will use the latest funding to scale its functionality on top of the Peto NPP infrastructure and accelerate its international expansion starting in New Zealand, driven by growing demand for Zepto infrastructure in the region. Zepto wants to enter the US after New Zealand
“The global payments landscape is undergoing one of the biggest upheavals in decades as open banking and real-time interbank payments are changing the way we pay and pay,” said James Cameron, partner at Airtree Ventures. “With Open Banking and NPP, Australia is at the center of this breakthrough and Zepto is a leading innovator in this area. Through companies such as Afterpay, Athena and Airvolex, Australia has shown that we can bring fintech innovation to the world. Presses on us.”