Volume, a one-click checkout company, is partnering with banking infrastructure platform Yapily to limit the amount of “hidden and unnecessary fees at online checkouts.”
The partnership aims to cut out payment processing intermediaries and expensive third-parties by enabling direct account-to-account (A2A) payments via Volume’s ‘Transparent Checkout’.
Merchants pay between 2% – 8% of all sales from card networks, e wallets and Buy Now Pay Later (BNPL) facilitators, according to McKinsey&Company. This then in turn is paid by the customer who is charged with higher prices on products.
These additional hidden fees – totalling up to $100 billion annually – has caused dispute between retailers and card networks, most notably when Amazon threatened to block all UK Visa debit and credit cards as a form of payment.
Simone Martinelli, Co-Founder and CEO at Volume, says: “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 works for everyone.”
Volume will implement Yapily’s open baking technology to form a one-click online payment solution. This is aimed to make direct A2A payments from merchant to customer whilst significantly reducing transaction fees.
As a result of the partnership, Volume believes that transaction fees will drop by 75%, making it three times cheaper than credit and debit cards, and up to ten times cheaper than ewallets.
Stefano Vaccino, CEO and Founder at Yapily, commented: “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.”