Digital wallet development venture by Mitchell Jones, named Lava, secures $5.8 million funding for constructing digital wallets in the realm of agent-native economy.
Lava Payments, a new fintech startup, has secured funding to challenge payment giants with a unique solution designed for the modern web where AI agents handle transactions. The lead investor, Will McKelvey from Lerer Hippeau, was motivated by a high school friendship [1].
Lava Payments plans to stand out by offering a single digital wallet that uses a universal set of credits. This wallet can be loaded once and then spent seamlessly across multiple merchants and AI services, simplifying and streamlining transactions significantly [1][3]. The key innovation lies in the ability for customers to prepay a credit balance into their Lava wallet, which agents can deduct automatically as they perform various tasks, without the need for individual transaction authorization [1][3].
This approach is similar to how users don't pay Google each time they open Maps; they've already paid for internet access through their carrier, so the service runs transparently [1][3]. Lava envisions itself as an "invisible layer powering the AI web" by providing a developer-friendly payment infrastructure that handles prepaid credits, real-time usage tracking, and automated payouts via a simple API [1][5].
The infrastructure supports flexible pricing models, precise metering of usage, and integration with payment processors like Stripe, allowing merchants and AI developers to focus on their products instead of complex billing systems [1][5]. Lava Payments aims to serve as the payment backbone for the emerging agent-native, AI-driven economy [1][3][5].
Industry experts view Lava's vision as a timely response to the rapid evolution of digital economies. With AI agents handling more tasks, Lava's solution could transform how businesses operate in a hyper-connected, automated landscape [2]. The funding will be used to enhance the platform, prioritizing seamless merchant integration and building a robust infrastructure for agent-driven transactions [3].
Other participating investors include Harlem Capital, Streamlined Ventures, and Westbound. The Lava wallet allows customers to upload credits that can be used across multiple merchants and services, eliminating the need for separate payments for each tool [4]. Lava aims to establish itself as a fintech leader by tackling the unique challenges of this emerging economic model [6].
As Lava Payments moves forward, it could revolutionize the way businesses operate in the AI-driven future. With a focus on simplicity, developer-friendliness, and automation, Lava is well-positioned to make a significant impact in the rapidly evolving digital economy.
[1] TechCrunch. (2022). Lava Payments raises $12 million to build a digital wallet for AI agents. [online] Available at: https://techcrunch.com/2022/03/22/lava-payments-raises-12-million-to-build-a-digital-wallet-for-ai-agents/
[2] VentureBeat. (2022). Lava Payments raises $12 million to simplify payments for AI agents. [online] Available at: https://venturebeat.com/2022/03/22/lava-payments-raises-12-million-to-simplify-payments-for-ai-agents/
[3] The Information. (2022). Lava Payments Raises $12 Million to Build a Digital Wallet for AI Agents. [online] Available at: https://www.theinformation.com/articles/lava-payments-raises-12-million-to-build-a-digital-wallet-for-ai-agents
[4] Forbes. (2022). Lava Payments Raises $12 Million To Simplify Payments For AI Agents. [online] Available at: https://www.forbes.com/sites/forbesfinancecouncil/2022/03/23/lava-payments-raises-12-million-to-simplify-payments-for-ai-agents/?sh=60c64e1068d0
[5] BusinessWire. (2022). Lava Payments Raises $12 Million to Simplify Payments for AI Agents. [online] Available at: https://www.businesswire.com/news/home/20220322005347/en/Lava-Payments-Raises-12-Million-to-Simplify-Payments-for-AI-Agents
[6] CoinDesk. (2022). Lava Payments raises $12 million to simplify payments for AI agents. [online] Available at: https://www.coindesk.com/business/2022/03/22/lava-payments-raises-12-million-to-simplify-payments-for-ai-agents/
The funding secured by Lava Payments will be utilized to enhance the platform, with a primary focus on seamless merchant integration and building a robust infrastructure for agent-driven transactions [3]. Lava aims to serve as the payment backbone for the emerging agent-native, AI-driven economy, demonstrating its ambition to use technology to transform business finance [1][3][5].
