Volt, a real-time payments platform based in the UK, introduces support for the Romanian currency.
Get ready to dive into the exciting world of open banking expansion! The UK's real-time payments platform, Volt, has taken a significant leap forward, extending its reach to Romania, embracing the local currency, the leu (RON). This move marks another milestone in Romania's integration into the burgeoning open banking scene.
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Volt's impressive network now covers over 2,500 banks in 31 markets, enabling speedy domestic and cross-border account-to-account payments across the UK, EU, Brazil, and Australia.
The growing fascination with open banking is evident in the surging numbers. With an estimated 11.4 million users in the UK and 63.8 million in Europe, it's predicted that an astonishing 11 million users are harnessing the power of open banking services in Central and Eastern Europe. Notably, Romania, being a significant player in the market, is alive with the buzz.
Currently, nine major Romanian banks and financial institutions ensure open banking connectivity. These include Alpha Bank, Banca Transilvania, BCR, CEC, Raiffeisen Bank, BRD, Unicredit, ING Bank Romania, Libra Bank, and Revolut.
According to the press release, Volt caters to a diverse clientele in Romania, with the highest adoption across sectors like wealth tech, e-commerce, and i-gaming. The company partners with notable payment service providers such as Worldline, Worldpay, and Pay.com.
Established in 2019, the rapidly growing Volt is one of the frontrunners in open banking and account-to-account payments. With a whopping USD 60 million Series B funding raise in 2023, the company boasts influential investors, including IVP (known for backing companies like Coinbase, Slack, and Supercell), CommerzVentures, EQT Ventures, Augmentum Fintech PLC, and Fuel Ventures.
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Beyond Volt: The Larger Open Banking Scene in Romania
The open banking landscape in Romania has witnessed remarkable growth, primarily due to the European Payment Services Directive 2 (PSD2). This directive mandates secure API usage to facilitate the sharing of customer financial data between financial institutions, fostering competition and innovation in the financial services sector.
Key Players and Initiatives
- Finqware and similar fintech companies are driving the open banking revolution in Romania, offering platforms like FinqTreasury that enable seamless real-time cash management, payments, collections, and financial reporting through connections with multiple European banks.
- Garanti BBVA Romania is another player that recently upgraded its instant payment capabilities via Allevo's FinTP-Instant solution. This integration allows the bank to connect to Romania's Sistemul Electronic de Transfer Național (SENT) for instant payments across various financial instruments.
- Regulatory Bodies in Romania work under the guidance of European directives like PSD2 to ensure compliance and security in open banking practices, paving the way for real-time, account-to-account payments.
- Volt's expansion into Romania, with support from major banks like Alpha Bank, Banca Transilvania, and Raiffeisen Bank, is a significant stride in the country's growing open banking scene under the influence of the European Payment Services Directive 2 (PSD2).
- In line with Volt's entry into the Romanian market, local fintech companies like Finqware are flourishing, offering platforms that facilitate seamless real-time cash management and payments through connections with multiple European banks.
- Beyond Volt, Garanti BBVA Romania has recently upgraded its instant payment capabilities, leveraging Allevo's FinTP-Instant solution, allowing connections to Romania's Sistemul Electronic de Transfer Național (SENT) for instant payments across various financial instruments.
- The Romanian open banking landscape is also witnessing the growth of technology-driven companies, with influential investors such as IVP, backing innovators in the space, empowering businesses in sectors like wealth tech, e-commerce, and i-gaming.
