By Daniel Lanyon on Tuesday 22 December 2020
Billing itself as a ‘Fitbit for Carbon’, Yazy wants to turn payments data into environmental impact offsetting.
Consumer-consciouness around climate change is a rapidly growing trend. Yayzy, a London-based fintech startup, has launched an app to help users off-set their emissions using open banking-enabled payments data.
Users connect their bank accounts, debit cards and credit cards to its app via open banking and Yayzy says it can estimate the carbon impact for each item of users spending in real-time.
Mankaran Ahluwalia, co-founder and CEO of Yayzy, told AltFi that the app can also guide users into making better purchases, from a carbon perspective, by suggesting alternatives but its long term hope is to provide the service for digital banks and other fintechs.
“We’re using payment data and get that we use open banking. Once we get this data we extract the payments data from it and use the carbon intensity [metrics] we have gathered with world leading scientists to arrive at our calculations,” he said.
“We are making it super simple, effortless,” he added.
In the short term, Yazy is selling carbon off-setting services directly as its prime monetisation strategy with a flat fee of £1.5 per carbon tonne offset. In the future, it is hoping that through APIs it can partner with other banks and fintechs to offer the service to other firms.
“We want to help other institutions help their customers understand their carbon footprints,” he said.
Ahluwalia says the fintech is looking at further integrations with third parties to deepen the reach of its data gathering.
“We’re getting more and more data into the app to make it more accurate and the evolution in technology is also helping us."
He says the firm is already talking to a number of banks interested in using the tech as well as having a new B2B customer.
Founded in London in 2019, it has to date secured just under £900,000 in financial backing from Antler Venture Capital, Seedrs (a crowdfunding round) and the CoreAngels Impact Fund.