Volante Secures $66 Million to Enhance Payment Technologies for Financial Institutions

Volante Secures $66 Million to Enhance Payment Technologies for Financial Institutions

Amidst a gradual digital shift within the financial sector, Volante Technologies emerges as a beacon of innovation with a substantial $66 million funding boost to revolutionize legacy payment systems for banks and financial entities.

Transaction Snapshot

  • Deal value: $66 million
  • Investors: Led by Sixth Street Growth, alongside Wavecrest Growth Partners and Wells Fargo Strategic Capital.
  • Company: Volante Technologies provides pivotal low-code cloud payment services, streamlining operations for over 150 prominent banking and financial organizations.

Company Snapshot

Volante Technologies, a New Jersey-based fintech firm, offers innovative payment processing solutions aimed at modernizing traditional banking systems. The fresh capital will propel their expansion into international markets and cater to mid-sized banks.

Volante Technologies has successfully completed a funding round, raising $66 million to fuel the enhancement of their payments technology aimed at banking and legacy financial operators. Sixth Street Growth spearheaded the funding efforts, supported by Wavecrest Growth Partners and Wells Fargo Strategic Capital. While specific details regarding equity and debt proportions remain undisclosed, Volante's cumulative funding has reached $116 million.

The investment will bolster Volante's international service offerings and help the company reach out to mid-tier banks, augmenting the large client base already in place. CEO Vijay Oddiraju plans to use the investment to accelerate their product roadmap, focusing on global real-time payments, the UK's New Payments Architecture, and modernizing domestic and cross-border payments in line with ISO 20022 standards.

Volante's comprehensive suite of services includes real-time payments, payment as a service, wire transfers in the U.S., and corporate-to-bank integrations. With a robust customer list that includes seven of the top ten U.S. banks, major card networks, and leading banks in Switzerland, Volante processes 66% of all U.S. commercial deposits.

The company's strategic position enables it to tackle the growing need for legacy banks to adopt modern services to remain competitive with fintech challengers. Volante's cloud-based services allow for seamless integration without overhauling existing banking infrastructure.

While Volante is a key player in this field, it faces competition from other fintech firms targeting legacy financial institutions, such as FintechOS, 10x, and Thought Machine. However, the market is still ripe for innovation, with many companies making only gradual changes due to budget constraints and a cautious approach to replacing established systems.

Accenture's report highlights that although many companies have embarked on modernization, only a fraction fully embrace comprehensive digital transformation. Volante's strategy aligns with this trend, focusing on delivering targeted services rather than overhauling entire platforms.

As financial institutions increasingly prioritize payment modernization and partnerships with fintech companies, Volante's latest investment positions it well to expand its reach and stay ahead of competitors. Nari Ansari of Sixth Street Growth affirms their investment reflects confidence in Volante's competitive edge and future growth potential.

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