Paydiant Closes Additional $15M in Funding
Paydiant customer leads investment round, includes participation from all existing investors
WELLESLEY, MA, September 10, 2013 — Paydiant, provider of a cloud-based mobile wallet, cardless ATM access, offer redemption and loyalty platform for retailers, banks and payment processors, today announced that it has closed a $15 million round of funding from North Bridge Venture Partners, General Catalyst Partners, Stage 1 Ventures and two of Paydiant’s customers. The new investment will be used to accelerate product development, sales and marketing.
“One of Paydiant’s Fortune 500 customers decided to pre-emptively initiate this financing because they believe that Paydiant's white-label, open mobile wallet platform and market positioning best serves the needs of the largest financial institutions retailers, and their customers.” said Jim Moran, partner at North Bridge Venture Partners. “Clearly Paydiant’s approach is resonating with their customers and the industry as a whole.”
Paydiant’s platform is currently deployed in partnership with prominent card-issuing banks, retailers, restaurants, merchant processors, debit/ATM networks and POS providers. The company was recently awarded a comprehensive mobile wallet patent for conducting payments in store, online and for pay-at-the-table transactions.
Unlike other mobile wallet solutions that require consumers to buy new phones or retailers to invest in costly new point-of-sale (POS) infrastructure, Paydiant’s white label platform works with existing smartphones, POS systems, and payment terminals, including entry-level countertop devices. It includes an easy to implement application programming interface (API) that enables retailers, payment processors and banks to integrate complete mobile wallet capabilities into their own iPhone® and Android™ applications including contactless mobile payments, e-receipts, offer redemption and cardless cash access on existing payment terminals, point-of-sale (POS) systems, ATMs and online shopping carts. In addition, the solution enables banks and retailers to avoid sharing sensitive customer information with intermediaries, and allows issuers of Paydiant-powered mobile wallets to share in new revenue streams from highly targeted mobile ads and offers.
With Paydiant, retailers and banks can begin signing up consumers today for mobile payments, while having the peace of mind of knowing that the platform works with today's technologies – including multiple smartphone operating systems and smartphone to POS interfaces like 2D codes and NFC – as well as tomorrow's. Paydiant’s patented payment processing method also lowers the risk of fraud by never storing a customer’s actual account credentials on the mobile device itself and giving retailers the option of not passing them through a retailer’s point-of-sale (POS) system. The solution also does not link an actual payment account credential to a 2D code or other tokens which are then scanned at the point-of-sale – a common approach that is highly vulnerable to fraud since a copy or screen grab of the code can be used to make payments.
“The mobile wallet is about far more than mobile payments – it’s a marketing platform,” said Chris Gardner, co-founder of Paydiant. “The market opportunity is huge, but most approaches have fundamental stumbling blocks such as requiring costly new hardware or having security issues. Retailers and banks also have concerns about the risks associated with sharing customer data with third party wallet providers. Paydiant, on the other hand, gives retailers and banks control over this critical customer touch point and all the incremental data, revenue and customer loyalty opportunities that come with it.”
Paydiant is the provider of a cloud-based, white label mobile payment, cardless ATM access, offer redemption and loyalty platform that enables merchants, banks and payment processors to deploy and manage their own mobile payment and ATM access solutions under their own brand and on their own terms. Based on an enterprise-class, cloud-based transaction processing platform, the Paydiant solution enables the key stakeholders in the payments value chain – retailers, banks and payment processors – to control the next generation of payment solutions. Visit www.paydiant.com for more information about the Paydiant solution and and follow us on Twitter@Paydiant.
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