Bolt's Ryan Breslow Launches New Payments App to Rival Coinbase, Zelle & PayPal

Ryan Breslow Returns with New Fintech “Superapp”

Ryan Breslow has formally resumed his position as CEO of Bolt, the one-click checkout company. He is simultaneously launching a new application intended to signify his leadership and a renewed direction for the fintech firm.

A Unified Platform for Crypto and Payments

Breslow characterizes the new product as a comprehensive platform facilitating “one-click crypto and everyday payments.” This vision was shared in an exclusive discussion with TechCrunch.

Past Controversies and Current Challenges

The entrepreneur previously stepped down from his role at the San Francisco-based company, which he founded in 2014 after leaving Stanford, in January 2022.

In subsequent years, Breslow encountered legal challenges from investors and accusations of misleading statements and security law violations related to inflated metrics during prior fundraising efforts.

Breslow openly acknowledges that Bolt’s revenue performance has been underwhelming in recent times. However, he anticipates a turnaround with the introduction of this new consumer application.

Competition and Differentiation

The app directly competes with established players like Coinbase, Zelle, and PayPal. Breslow asserts its key advantage lies in consolidating the functionalities of these platforms into a single mobile experience.

Cryptocurrency Capabilities

Users will be able to buy, sell, send, and receive prominent cryptocurrencies, including Bitcoin, Ethereum, USDC, Solana, and Polygon, directly through the app.

An on-chain balance, powered by Zero Hash, will provide users with real-time visibility into their holdings, according to Breslow.

Reviving the Original Vision

“I founded Bolt 11 years ago with the goal of creating the most user-friendly app for cryptocurrency transactions. I maintain that this remains an underserved area,” Breslow stated. “Today represents a pivotal moment: the revival of that initial concept.”

He describes the app as “Coinbase for the 99%,” designed for individuals who may lack extensive technical expertise but still wish to engage in cryptocurrency trading. (Bolt acquired cryptocurrency payments company Wyre for $1.5 billion in 2022, initially focused on simplifying crypto transactions before shifting its focus to one-click checkout.)

Peer-to-Peer Payments and Zelle Alternative

Breslow also aims to fill the void left by Zelle’s discontinuation of its standalone app. Bolt’s new offering enables users to execute peer payments “with a single click” within the application.

Unlike Zelle, which restricts payments to peers through banking apps, Bolt’s solution operates independently.

Debit Card and Rewards Program

Bolt has partnered with Midland States Bank to introduce a debit card featuring a rewards program. This includes up to 3% direct cash back on qualifying purchases and up to 7% in store credits at Love.com.

(Love.com, a health and wellness startup founded by Breslow in 2023, continues to have him as its CEO.)

Users will need to transfer funds from an existing bank account to fund purchases made with the debit card, as Bolt does not provide banking services.

Additional Features

The new app also incorporates real-time order tracking, a feature also found in applications like Klarna.

Availability

The application is currently available on iOS and will soon be released on the Google Play Store. Users who download the app will be placed on a waitlist, with iOS users prioritized for access.

Rapid Development of Bolt’s New “Superapp”

According to Ryan Breslow, the development of the new “superapp” was completed in a remarkably short timeframe of six months. The initial groundwork for this application was undertaken by Justin Grooms, Bolt’s president and previously acting CEO, and Kartik Ramachandran, the company’s chief product officer, prior to Breslow’s return to the company.

Breslow provided guidance to Grooms and Ramachandran throughout the period leading up to his reinstatement. He stated, “Our team has been dedicating evenings and weekends to ensure its timely completion.” Currently, Bolt maintains a workforce of approximately 140 employees.

User Growth Despite Revenue Challenges

Despite experiencing slower revenue growth, Breslow asserts that Bolt has successfully expanded its user base. The company now boasts a two-sided network encompassing tens of millions of shoppers in the U.S., alongside a merchant base including prominent brands like Revolve and Kendra Scott.

Financial reporting from Newcomer indicates that Bolt’s Annual Recurring Revenue (ARR) reached $28 million, with a gross profit of $7 million, as of March 2024.

Addressing Past Performance and Future Strategy

Breslow acknowledged a period of limited revenue growth prior to his return, stating, “Prior to my return, our revenue did not grow much and we haven’t closed as much business as we’d like.” He expressed a commitment to improving operational efficiency.

He further noted, “We don’t think the company was run as well as it could have been. And that’s something I’m going to change very quickly.” Despite these challenges, the platform continued to attract users.

Breslow highlighted significant growth in the shopper network, increasing from 10 million at the time of his departure to 80 million within the U.S., with an even larger global presence.

Monetization Plans

Bolt intends to leverage its extensive network to generate revenue through multiple streams. These include earning interchange fees on debit card transactions and implementing charges for cryptocurrency purchases and sales.

Data Verification is a key asset for Bolt. “We already have a large trove of data users have provided that has been verified and charged successfully,” Breslow explained. This pre-verified user data is expected to facilitate these new revenue-generating initiatives.

Resolution of Legal Disputes

Last year, the financial technology firm reportedly attempted to secure $450 million in funding through a uniquely structured agreement, potentially valuing the company at $14 billion. This proposed deal sparked scrutiny regarding the utilization of $250 million in marketing credits and the misidentification of a key investor.

Legal action was initiated by several of Bolt’s investors, notably BlackRock and Hedosophia, aiming to halt the funding round, as detailed by Forbes. However, Bolt subsequently announced in March that all parties had voluntarily dismissed the lawsuit.

Currently, Bolt is engaged in preliminary discussions regarding a new funding round, with CEO Ryan Breslow anticipating a potential closure “in the mid to near future.”

Previously, a lawsuit was filed against Breslow by former investor Activant Capital concerning a $30 million loan personally obtained by the founder. Activant asserted that Breslow incurred $30 million in debt for the startup, subsequently defaulting on the loan and utilizing company assets for repayment.

This dispute was ultimately resolved through a settlement, wherein Bolt agreed to repurchase Activant’s shares for $37 million last year.

During a presentation at Fintech Meetup in Las Vegas in March, Breslow addressed the loan, characterizing it as a demonstration of commitment to Bolt, rather than the alleged self-dealing outlined in the Activant lawsuit.

He stated to TechCrunch: “Over the past three years, I have faced significant challenges and have been working to regain the confidence of judges, investigators, and our team. It has been an incredibly difficult, yet profoundly educational experience.”

Breslow further elaborated: “Despite these difficulties, I am incredibly optimistic about the opportunities ahead and deeply thankful that our company has successfully navigated these turbulent times.”

Bolt, a provider of checkout acceleration software for retailers, has secured approximately $1 billion in venture funding and once held a valuation of $11 billion. Its investor base includes prominent firms such as funds and accounts managed by BlackRock, Schonfeld, Invus Opportunities, CreditEase, H.I.G. Growth, and Moore Strategic Ventures.

Details of Past Litigation

A funding attempt of $450 million, with a potential $14 billion valuation, faced challenges last year for the fintech company. Concerns were raised about the application of $250 million designated for marketing credits and an incorrectly identified lead investor.

Investors including BlackRock and Hedosophia initiated legal proceedings to prevent the completion of this funding round, as reported by Forbes. However, Bolt announced in March that the case had been dismissed by all involved parties.

The company is now in the initial stages of exploring a new funding round, which Breslow believes could be finalized relatively soon.

A prior legal dispute involved a $30 million loan taken out by Breslow, with Activant Capital alleging that the founder had burdened the startup with debt. The claim was that the loan was defaulted on, and company funds were used for repayment.

Ultimately, a settlement was reached, resulting in Bolt repurchasing Activant’s shares for $37 million the previous year.

At the Fintech Meetup in Las Vegas, Breslow defended the loan, presenting it as a loyal act towards Bolt, contrasting the accusations of self-dealing made by Activant Capital.

He shared with TechCrunch: “The last three years have been marked by considerable adversity, and I’ve been focused on rebuilding trust with judges, investigators, and our team. This has been a remarkably valuable learning journey.”

He continued by saying: “Despite the challenges, I am incredibly enthusiastic about the opportunities that lie ahead and grateful that our company has overcome these obstacles.”

Bolt, specializing in software designed to streamline the checkout process for retailers, has raised around $1 billion in venture capital and was once valued at $11 billion. Key investors include BlackRock, Schonfeld, Invus Opportunities, CreditEase, H.I.G. Growth, and Moore Strategic Ventures, among others.