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(This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/04\/26\/founded-by-adyen-and-affirm-alums-ansa-aims-to-help-merchants-create-virtual-wallets-for-customers\/<\/a><\/br> Having the ability to load up a digital wallet to pay for goods and services at businesses you frequent, and then earn rewards for those purchases, would be convenient and well, rewarding.<\/span><\/p>\n But as of now, few merchants outside of retail giants such as Starbucks offer that ability.<\/span><\/p>\n Ansa<\/a> is a startup emerging from stealth today that wants to change that.<\/span><\/p>\n Founded last year by former Adyen product manager Sophia Goldberg and ex-Affirm software engineer JT Cho, San Francisco-based Ansa is building what it describes as a white-labeled digital wallet infrastructure to help businesses process small payments and offset high credit card fees for smaller transactions.<\/span><\/p>\n Or as Goldberg describes it, Ansa is building a \u201cwallet-as-a-service,\u201d or embedded customer balances to let any merchant launch a branded flexible payment instrument.<\/span> \u201cThat can look like the Starbucks in-app payment experience where a customer loads funds, it can also allow a merchant to fund with incentives or refunds,\u201d she told TechCrunch. \u201cThe why of this is that it can really reduce costs, increase revenue and drive loyalty.\u201d<\/p>\n Initial customers are quick-service restaurants (QSRs) and coffee shops, but the founders\u2019 goal one day is to serve enterprise customers as well.<\/span><\/p>\n Goldberg, who penned \u201c<\/span>The Field Guide to Global Payments\u201d<\/span> and was previously on Hillary Clinton\u2019s finance team during her campaign, said she was driven to build Ansa in part because of what she described as \u201cinflexibility in payments in the U.S. today.\u201d<\/span><\/p>\n \u201cEspecially during the pandemic heyday of the creator economy, I saw some companies launching not great monetization experiences, and I thought you know for these small transactions, it should be a closed loop wallet on your platform, then you\u2019re able to get away from barriers to entry with card cost of payments today,\u201d she said. \u201c<\/span>Your most loyal customers shouldn\u2019t cost you the most.\u201d<\/span><\/p>\n So how does offering prepayments help save money for merchants? Besides paying interchange fees for any credit or debit card purchase, merchants also pay other fees for every transaction. Card fees, particularly for micropayments, can represent well over 12.5% of the transaction, notes Goldberg. But if a consumer prepays, they\u2019re making fewer transactions overall. This means that a merchant then pays lower fees on the transactions being made by what Goldberg calls \u201chabitual use, low transaction\u201d (or HULT) customers.<\/span><\/p>\n Ansa claims that by using its API-first platform, a merchant can create a wallet \u201cwithin weeks rather than quarters.\u201d<\/span><\/p>\n It\u2019s live with its first pilot customers and plans to charge customers a monthly recurring fee.<\/span><\/p>\n Bain Capital Ventures led Ansa\u2019s $5.4 million seed round last year and notably, partner Christina Melas-Kyriazi actually introduced Goldberg to Cho, who had moved on from Affirm to Google.<\/span><\/p>\n \u201cSophia and JT are fintech veterans with a similar mindset around product and culture,\u201d <\/span>Melas-Kyriazi told TechCrunch. \u201c<\/span>Having worked with JT at Affirm, I knew he would be an ideal technical partner for Sophia\u2019s product-minded payments experience.\u201d<\/span><\/p>\n She added: \u201cIt\u2019s completely counterintuitive that the most frequent customers at many small businesses are also the least profitable. Sophia\u2019s expertise in payments and deep knowledge of the customer\u2019s pain points make her the ideal founder for a company dedicated to making it easier to attract, retain and reward those loyal customers profitably. Ansa will bring the virtual wallets used by the Starbucks of the world to every local coffee shop and quick service restaurant.\u201d<\/span><\/p>\n Ansa\u2019s other backers are a mix of institutions and angel investors: <\/span>Nimi Katragadda at Box Group, Nichole Wischoff at Wischoff Ventures, Cambrian Ventures, the Fintech Fund, Susa Ventures and angels such as Plaid co-founder and CEO Zach Perret, Gokul Rajaram and the founders of Alloy, among others. Notably, female investors contributed over 75% of the funding round.<\/span><\/p>\n Want more fintech news in your inbox? Sign up <\/span><\/i>here<\/span><\/i><\/a>.<\/span><\/i><\/p>\n Got a news tip or inside information about a topic we covered? We\u2019d love to hear from you. You can reach me at maryann@techcrunch.com. Or you can drop us a note at tips@techcrunch.com. Happy to respect anonymity requests. <\/span><\/i><\/p>\n<\/p><\/div>\n <\/br><\/br><\/br><\/p>\n
\nFounded by Adyen and Affirm alums, Ansa aims to help merchants create virtual wallets for customers<\/br>
\n2023-04-26 21:55:00<\/br><\/p>\n
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