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Zepto closes $19Mn Series A round, aims at international expansion

Zepto closes $19Mn Series A round, aims at international expansion
Zepto closes $19Mn Series A round, aims at international expansion

Australian instant payments platform, Zepto, has reportedly raised A$25 million ($19 million) in its Series A round. The startup will be using its latest funding to advance its services and fuel expansion plans.

Zepto is a real-time A2A (account to account) payments platform that allows merchants to send, receive, and manage payments by directly connecting their bank to the payer’s bank.

The round was co-led by Australian investment firm Decade Partners and venture capital firm AirTree Ventures. The investment comes after a ten-fold year-over-year revenue growth since the startup was established in 2018.

The platform stated that it processes payments worth over A$4 billion ($3 billion) in volume monthly and expects to process over A$50 billion ($37 billion) this year.

Several Australian organizations, such as banks, credit unions, and fintech firms, are using NPP (new payments platform), an open-access infrastructure in Australia for quick payment. NPP’s PayTo is a novel digital tool with which businesses and merchants can initiate real-time payments from their customer’s bank accounts.

In October, Zepto became the first non-bank that was approved to be an NPP-connected institution, which means that its clients will be directly connected to NPP’s PayTo services that will be rolled out around the mid of this year.

The startup will be utilizing the fresh capital in enhancing its framework for NPP’s PayTo and will enter New Zealand under its expansion plan, with the region seeing a growing demand for its infrastructure, followed by the U.S.

Chris Jewell, CEO, Zepto, stated that the future of transactions is real-time payments made directly between bank accounts, as payment preferences of merchants and consumers have shifted from costly legacy payments, such as credit cards, and traditional direct debit.

Jewel added that with banks being present everywhere, payments between them offer a simple and efficient way for consumers to pay for things, and he explained that A2A transactions do not require a card or PIN, cutting out intermediaries like Visa and Mastercard that power debit/credit cards.

Zepto’s customers include Binance Australia, Novatti Group, Rentbetter, Bluestone, Superhero, Till Payments, and Biz Pay, among various corporations, lenders, crypto platforms, and even travel operators.

Source credit: https://techcrunch.com/2022/03/27/australian-fintech-zepto-raises-25m-series-a-to-enhance-payment-infrastructure/

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Aakriti Rao

Aakriti Rao

Aakriti Rao has always had a flair to pen down crisp and quirky content. A qualified English Literature graduate, Aakriti’s forte lies in creating content for varied genres in an utmost interactive way. Presently, she works as a content developer and writes articles spanning the latest business trends, market research, and industry news for Cue Report.