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Ansa: Providing Branded Customer Wallets for Merchant Payment Solutions

Image Credits: Ansa
By: Headliners News / May 31, 2024

Meet Ansa, a pioneering startup facilitating the development and provisioning of branded virtual wallets for merchants, has recently disclosed to TechCrunch its successful completion of a $14 million Series A funding round.

Renegade Partners spearheaded the latest financing, with continued support from existing investors such as Bain Capital Ventures, BoxGroup, and Wischoff Ventures, alongside fresh backing from B37 Ventures. This latest infusion brings Ansa’s total venture capital raised to nearly $20 million, building upon a prior $5.4 million seed round. While the company refrained from divulging its current valuation, it highlighted that the Series A round was raised “with a significant valuation multiple.”

A notable aspect of this funding round is the predominant participation of female investors, with luminaries like Renegade Partners’ Renata Quintini, Wischoff Ventures’ Nichole Wischoff, Bain Capital’s Christina Melas-Kyriazi, BoxGroup’s Nimi Katragadda, and former Affirm executive Silvija Martincevic collectively contributing 95.6% to the Series A.

Established in 2022 by former Adyen product manager Sophia Goldberg and ex-Affirm software engineer JT Cho, San Francisco-based Ansa is at the forefront of developing what it terms a white-labeled digital wallet infrastructure. This infrastructure empowers businesses to process small payments effectively while mitigating the burden of high credit card fees for smaller transactions.

In Goldberg’s words, Ansa is crafting a “wallet-as-a-service,” equipping merchants with embedded customer balances to launch personalized payment instruments seamlessly. Whether mirroring the Starbucks in-app payment experience or facilitating merchant-funded incentives or refunds, Ansa’s API-first platform expedites wallet creation, condensing the timeline from quarters to mere weeks.

Having branded customer wallets help enable merchants to offer a better payment solution that aligns with their unique use cases, which helps increase customer loyalty and frequency. Additionally, merchants can boost their revenue streams and enhance their customer loyalty programs by integrating customer balances with rewards, incentives, and other loyalty initiatives too.

Initially targeting the coffee, quick-service restaurant (QSR), and marketplace verticals, Ansa is extending its reach to encompass retail and convenience stores. Branded wallets not only afford these merchants greater flexibility but also shield them from exorbitant credit card fees that can erode margins, especially for lower-value transactions.

For instance, Goldberg highlighted that a $4 latte paid via credit card could incur fees exceeding 12.5%, significantly denting profits. By contrast, Ansa’s platform presents a viable alternative, especially for businesses with narrow margins, by curbing the impact of fixed transaction fees. While Ansa has refrained from disclosing specific customer or revenue metrics, Goldberg noted a doubling of the customer base in the first quarter of 2024 compared to the previous year.

Ansa monetizes its platform through a combination of platform fees and transaction markups, aligning with its dual role as infrastructure provider and revenue generator. With a focus on product development and engineering, the company, currently comprising 12 employees, is poised for expansion, with the Series A funding serving as a catalyst for its growth trajectory.

Renegade Partners’ Quintini underscored the significance of their investment, marking it as their largest initial investment to date. She emphasized Ansa’s compatibility with leading payment service providers (PSPs) such as Square, Stripe, and Braintree, enabling seamless integration for merchants seeking to elevate customer experiences akin to the Starbucks app.

In essence, Ansa’s technology empowers every merchant to deliver a Starbucks app-like experience, seamlessly blending operational efficiency with customer satisfaction—a feat that Renegade Partners is confident will resonate strongly across diverse merchant landscapes.

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