FinTech: Wells Fargo Invests $10M In Cloud Payments Provider Volante
Wells Fargo made the investment through its arm Wells Fargo Strategic Capital.
Volante Capital, a provider of cloud payment services and financial messaging, announced Wednesday an investment of $10 million by Wells Fargo Strategic Capital. Wells Fargo joins Wavecrest Growth Partners, BNY Mellon, Citi Ventures, PostePay and Visa Inc, the investors in Volante’s previous $35 million round held in August 2020. (Volante)
The August funding round represented Volante’s first outside investment after nearly two decades of strong organic growth and profitability. In fact, the company pioneered real-time payments in the U.S. and cloud technology in financial services.
“While innovation has accelerated in customer-facing fintech applications, legacy core payments infrastructure has been slower to adopt new technologies due to its complex messaging standards and mission-critical environments,” said Basil Darwish, managing director for Wells Fargo Strategic Capital. “Volante solved such challenges by offering a modern cloud-native payments platform that minimizes the complexity while accelerating its customers’ payments modernization efforts.”
The current investment by Wells Fargo brings the total institutional investment into Volante to $45 million.
Last month, Volante announced ISO 270[01:20]13 certification combined with SOC 1/SOC 2 and PCI DSS compliance across its cloud and payments solutions and operations, becoming the first cloud payments provider to achieve these accreditations.
Banks and financial institutions would therefore be assured of the highest standards of resiliency, security, and data privacy for their payments operations.
Wells Fargo migrated recently to the ISO 20022 financial messaging standard across its global payments operations, for which it selected Volante for ISO 20022 Migration and Modernization.
Furthermore, in 2020, Volante doubled its net new logo signings from the previous year. It also closed 50 sales transactions with big-name customers including multinational banks, global asset managers, stock exchanges and payment networks.
“If banks can launch payment products in months versus years, then that’s a win for everyone,” said Vijay Oddiraju, CEO, in a statement. “Beyond digital banks and financial institutions, we also want to bring the value of our solutions directly to business and consumer brands.”
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