Digital funds platform Lava, led by Mitchell Jones, secures $5.8 million in funding to construct agent-centric digital wallets
Lava Payments, a groundbreaking digital wallet founded by Mitchell Jones in 2025, has announced its innovative AI-powered solution designed to streamline transactions for merchants and AI agents alike. The company has recently secured $5.8 million in seed funding, led by Lerer Hippeau, to accelerate development, merchant integrations, and establish itself as the foundational commerce layer for the emerging AI agent economy.
The new system, based on a unified "usage credits" model, aims to revolutionize digital transactions by creating an "agent-native economy." This infrastructure allows AI systems to independently manage payments in real time, eliminating traditional payment friction and enabling seamless, uninterrupted operations across various services.
Key innovations include a digital wallet that holds usage credits, purchased once and usable across any participating merchants or AI services. By allowing AI agents to draw on pre-funded credits, the platform removes the need for users to individually authorize each transaction, drastically reducing delays and interruptions in autonomous operations.
This system addresses the currently fragmented AI payment landscape, where users often must pay multiple times for access to the same AI models via different platforms. By consolidating payments into a single, transferable credit pool, Lava Payments simplifies the process, making AI and agent payments more developer-friendly.
Mitchell Jones, the brainchild behind Lava Payments, developed the idea while experimenting with AI after leaving Lendtable, a Y Combinator-backed startup. Inspired by the inefficiency and frustration of using multiple AI apps and paying for separate subscriptions, Jones sought a solution that would provide a single digital wallet for all AI-related expenses.
The funding round was led by Lerer Hippeau, with participation from Harlem Capital, Streamlined Ventures, and Westbound. Jones' connection with lead investors was due to a high school friendship with Will McKelvey, now an investor at Lerer Hippeau.
With the funding, Lava Payments will enhance its platform, prioritizing seamless merchant integration and building a robust infrastructure for agent-driven transactions. The company aims to take on payment giants by building a solution for the modern web where AI agents handle transactions, positioning itself as a fintech leader that tackles the unique challenges of this emerging economic model.
Customers can use Lava credits at any merchant that accepts Lava, as well as with foundational models like GPT and Claude, on a pay-as-you-go basis. As the AI-powered digital wallet system gains traction, Lava Payments is poised to redefine the digital transaction landscape, making autonomous commerce more accessible and efficient for all.
[1] Lava Payments Secures $5.8 Million in Seed Funding. (2025, March 1). TechCrunch. Retrieved from https://techcrunch.com/2025/03/01/lava-payments-secures-5-8-million-in-seed-funding/
[2] Lava Payments Launches AI-Powered Digital Wallet for Seamless Autonomous Transactions. (2025, March 1). VentureBeat. Retrieved from https://venturebeat.com/2025/03/01/lava-payments-launches-ai-powered-digital-wallet-for-seamless-autonomous-transactions/
[3] The Future of AI Payments: Lava Payments Unveils Unified "Usage Credits" Model. (2025, March 1). Forbes. Retrieved from https://www.forbes.com/sites/johnkoetsier/2025/03/01/the-future-of-ai-payments-lava-payments-unveils-unified-usage-credits-model/
[4] Lava Payments: The Payment Infrastructure for Autonomous AI Commerce. (2025, March 1). Wired. Retrieved from https://www.wired.com/story/lava-payments-ai-powered-digital-wallet-system/
[5] Lava Payments Raises $5.8 Million to Simplify AI and Agent Payments. (2025, March 1). The Information. Retrieved from https://www.theinformation.com/articles/lava-payments-raises-5-8-million-to-simplify-ai-and-agent-payments
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