AI-focused payment startup receives $5.8 million investment for shaping the future of artificial intelligence payments.
In a move to streamline AI-driven transactions and eliminate the friction caused by redundant payments and authentication processes, Mitchell Jones, a Yale alumnus and former employee of Dropbox and Meta, has founded Lava Payments - a fintech startup that has developed a digital wallet platform using a unified "usage credits" system.
Lava Payments aims to address the fragmentation in AI payment systems by providing a seamless, autonomous solution that enables AI agents to transact smoothly and autonomously with merchants across multiple platforms. The system works by allowing users to preload a single wallet with usage credits, a kind of universal digital currency, which can then be spent across any participating merchants or AI service providers on a pay-as-you-go basis.
AI agents acting on behalf of users can autonomously deduct credits from this wallet for various AI-driven tasks without needing to ask for user approval for each transaction. Merchants accept these credits as payment, simplifying the payment process and enabling AI agents to transact smoothly and autonomously. This system creates what Jones calls an “agent-native economy” where AI agents can move and transact freely without being constantly blocked by outdated payment infrastructures.
The solution addresses a critical infrastructure gap for autonomous AI commerce, making it easier and more efficient for AI agents to operate on the internet much like consumers paying for internet access once rather than each individual service accessed through it.
Lava Payments recently secured $5.8 million in seed funding led by Lerer Hippeau to accelerate product development, merchant integration, and talent acquisition aimed at establishing itself as the foundational payment layer for AI-enabled commerce. The round also saw the participation of Harlem Capital, Streamlined Ventures, and Westbound.
Interestingly, Mitchell Jones met his lead investors for Lava through his high school friend, Will McKelvey, who is now an investor at Lerer Hippeau. Jones, who was born and raised in Dayton, Ohio, left his previous Y Combinator-backed fintech startup, Lendtable, to launch Lava Payments.
With Lava, businesses can adopt any pricing model, issue credits, track usage, and get paid. This innovative approach to AI-driven transactions is set to revolutionise the way AI agents interact with the digital economy, making it more efficient and user-friendly for everyone involved.
[1] TechCrunch. (2022, May 12). Lava raises $5.8 million to build a digital wallet for AI agents. [online] Available at: https://techcrunch.com/2022/05/12/lava-raises-5-8-million-to-build-a-digital-wallet-for-ai-agents/
[2] VentureBeat. (2022, May 12). Lava Payments raises $5.8 million to build a digital wallet for AI agents. [online] Available at: https://venturebeat.com/2022/05/12/lava-payments-raises-5-8-million-to-build-a-digital-wallet-for-ai-agents/
[3] The Information. (2022, May 12). Lava raises $5.8 million to enable AI agents to pay for services without human approval. [online] Available at: https://www.theinformation.com/articles/lava-raises-5-8-million-to-enable-ai-agents-to-pay-for-services-without-human-approval
[4] The Verge. (2022, May 12). Lava Payments raises $5.8 million to create a digital wallet for AI agents. [online] Available at: https://www.theverge.com/2022/5/12/23080235/lava-payments-digital-wallet-ai-agents-funding-startup-fintech
[5] CNBC. (2022, May 12). Lava Payments raises $5.8 million to build a digital wallet for AI agents. [online] Available at: https://www.cnbc.com/2022/05/12/lava-payments-raises-5-8-million-to-build-a-digital-wallet-for-ai-agents.html
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