NEW YORK, NY - Aug 06, 2025 (UTC) - Lava Payments, a fintech startup reimagining payments for the AI-driven web, has raised $5.8 million in a seed round led by Lerer Hippeau, with support from Harlem Capital, Streamlined Ventures, and Westbound. Founded by Mitchell Jones, a serial entrepreneur and Y Combinator alum from Lendtable, Lava is building a digital wallet to power seamless transactions for AI agents, tackling inefficiencies in the “agent-native economy.” Announced today, this funding marks a bold step toward making AI-driven commerce frictionless for developers, merchants, and users alike.
The idea for Lava sparked when Jones, frustrated by spending over $400 on redundant subscriptions while prototyping an AI form-filling agent, saw the need for a unified payment solution. Lava’s digital wallet allows users and AI agents to purchase credits that work across a network of merchants and services, including foundational AI models like GPT and Claude, on a pay-as-you-go basis, eliminating repetitive authentications and subscriptions.
How the Funds Will Be Used
The $5.8 million will fuel Lava’s growth, with plans to:
- Enhance the Platform: Expand the digital wallet’s compatibility with more merchants and AI models, prioritizing ease of use and scalability.
- Grow the Team: Hire top talent in engineering and product development to accelerate innovation.
- Build Partnerships: Drive go-to-market efforts by integrating Lava’s wallet with e-commerce platforms, SaaS providers, and developer tools.
- Scale Operations: Prepare for global expansion within the $1.2 trillion digital payments market, focusing on AI-driven use cases.
Pioneering AI Payment Solutions
Lava’s platform addresses a critical bottleneck: AI agents struggle to navigate the web’s fragmented payment systems, often requiring human intervention for approvals or subscriptions. By offering a single wallet with interoperable credits, Lava enables agents to transact effortlessly, much like a universal pass for digital services. Early adopters, including developers and SaaS providers, have tested the platform with over 20 AI models, and Lava is gaining traction in a market where AI agent adoption is projected to reach $47 billion by 2030.
Unlike competitors like Metronome, which focus on subscription-based billing, Lava emphasizes a connected ecosystem where credits flow freely across platforms. This approach mirrors paying for internet access once to use services like Google Maps, rather than per-transaction fees, making it ideal for autonomous agents handling tasks from bookings to data processing.
Leadership with a Personal Mission
Mitchell Jones, a Dayton, Ohio native with a Yale education and experience at Goldman Sachs, Meta, and fintech startups Parable and Lendtable, launched Lava in 2024 to democratize AI access. His high school friend, Will McKelvey of Lerer Hippeau, led the investment, fulfilling a long-standing goal to collaborate. Jones’ vision is rooted in accessibility: “I want Lava to empower anyone, from a kid in Dayton to a global developer, to use AI without financial hurdles.”
Tackling Industry Pain Points
As AI agents become integral to e-commerce, SaaS, and automation, fragmented payment systems create friction. Lava’s wallet removes this barrier, offering a seamless, scalable solution. With the digital payments market valued at $1.2 trillion, Lava’s focus on agent-driven transactions positions it to capture significant market share, especially as AI adoption accelerates.
Voices from the Top
“We’re crafting the payment layer for the AI web,” said Mitchell Jones, Founder and CEO of Lava Payments. “Lava lets agents move and transact without roadblocks, unlocking AI’s potential for everyone.”
Will McKelvey of Lerer Hippeau added, “Lava’s approach to agent-native payments is visionary. It’s solving a real problem for the AI economy, and we’re thrilled to back Mitchell’s team.”
What’s Next
Lava aims to partner with 100 merchants by mid-2026 and boost transaction volume tenfold, with a long-term goal of supporting 1 million monthly active users by 2028. The company is exploring integrations with major e-commerce and SaaS platforms to solidify its role as the backbone of AI-driven transactions.
About Lava Payments
Founded in 2024, Lava Payments is a New York-based fintech startup building digital wallets for the agent-native economy. Its platform enables seamless, usage-based payments for AI agents and users across merchants and services, backed by Lerer Hippeau, Harlem Capital, Streamlined Ventures, and Westbound. Lava is dedicated to eliminating financial friction in AI-driven commerce.
Contact
Mitchell Jones, Founder & CEO
Email: info@lavapayments.com
Website: https://www.lavapayments.com
