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Volt collapse hits fintechs with butterfly effect

Volt’s collapse is sending shockwaves through the fintech sector as startups closely associated with the neobank, such as Parpera, rush to regroup.

The fintech partnered with Volt for banking services, meaning its 500+ small business customers have lost banking, payment and card functions until a new bank employee is found.

In a message to customers and investors, Parpera founder and CEO Daniel Cannizzaro explained that until alternative arrangements were made, they would not be able to onboard new members and will continue to provide services for existing Volt-powered customers. bank account will stop on July 5, in accordance with the neobank shut down.

“We are working with our other partners and are taking steps to find alternative options to resume our services to our members as soon as possible,” Cannizzaro wrote.

“Our priority now is to make sure your money is returned to you quickly and easily. We kindly request that you use your Parpera app to transfer your balance to a designated bank account at another financial institution before July 5, 2022.”

Access to the Parpera Business Debit Mastercard has also been discontinued.

Cannizzaro told Startup Daily 24 hours after the show news that they were “overwhelmed by the positive and kind words of support from our members, investors and the wider community”.

‍ “I am proud of the professionalism and swift action that our team has taken to act in the best interests of our members by supporting them, in line with our values, at a very difficult time for everyone involved,” he said.

“June was our best-performing month in member satisfaction and growth, further confirming the need for Parpera and why our solution should continue to exist.

“Our team is focused on rebuilding and rehabilitating to better serve the needs of our members and the wider Australian business community in the near future.”

Parpera is an all-in-one business money platform for sole traders, freelancers and entrepreneurs, seeing 80% month-over-month growth to 500 companies within 3 months of the corporate debit card launch. Cannizzaro wants to raise money for the next phase of growth for its fintech. He raised $1.3 million in October last year as he prepared to launch Parpera.

Shreya has been with australiabusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider australiabusinessblog.com, Shreya seeks to understand an audience before creating memorable, persuasive copy.

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