back Back

Atoa Payments raises $2.2m to challenge Visa and Mastercard

By Gloria Methri

November 25, 2022

  • Atoa Payments
  • Card Payments
  • FinTechs
Share

Atoa Payments, a UK start-up using open banking to offer payment services to merchants, has raised $2.2 million in a pre-seed funding round.

The funding was led by Leo Capital and Passion Capital with participation from angel investors such as GoCardless co-founder Matt Robinson and Moon Capital Ventures.

Atoa states that Mastercard and Visa payment rails have an effective duopoly in the market which enables them to get away with net margins as high as 51% at the expense of small merchants and their customers. Aiming to take on the card giants, the start-up has invited small businesses to use the Atoa app to connect their merchant bank accounts.

The setup takes about five-minute, after which merchants can accept payments via SMS, Pay-by Link, or QR code. Customers do not need to download a separate app. They can simply scan the QR code or click on the link sent by the merchant, select their bank, and are then redirected to their bank app to approve the payment.

Sid Narayanan, Co-Founder of Atoa Payments said, “At a time of record inflation and amid a cost-of-living crisis, UK’s small and medium merchants are struggling to contain their costs, provide great service to the customers, and maintain profit margins. Atoa is here to empower merchants and to improve their cash flow and bottom line.”

Atoa claims that its Instant Bank Pay system slashes the cost of accepting payments by 70% and ensures instant payment rather than having to wait for one to two days for debit cards. Atoa also eliminates the binding contracts and charges no hardware fees or chargeback fraud risk. All payments are approved via the bank app and have Strong Customer Authentication.

Previous Article

November 25, 2022

Paysera expands to Georgia

Read More
Next Article

November 25, 2022

Beyon money remittance services are now available on BenefitPay

Read More






IBSi Daily News Analysis

Data privacy

July 16, 2024

Atoa Payments

Rise in sophisticated attacks, state-level threats, and increased ransom DDoS Incidents

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

July 17, 2024

SWiM PAY launches new instant digital payments feature

Read More

July 17, 2024

Mangopay & ManoMano simplify payments for marketplace sellers

Read More

July 17, 2024

Digital banking glitches drive younger generations away from traditional banks

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q2 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2024