PayNearMe Raises $10 Million Led By August Capital
PayNearMe is a startup that has raised $10 million in Series D funding led by August Capital. Other investors that participated include Khosla Ventures, Maveron, and True Ventures. PayNearMe recently launched a new product called PayNearMe Express. The company has a cash-based payments platform that lets businesses sign up to accept cash payments from PayNearMe customers.
Formerly known as “Kwedit,” PayNearMe’s alternative payment services works with businesses online and offline. The company provides consumers with a payment slip that they can print out or access from their mobile phones. The payment slip has a barcode or a numerical code that merchants can scan or key in at the point-of-sale. Some large PayNearMe users are 7,000 7-Eleven stores and 1,600 ACE Cash Express stores. The company will be adding two more major retailers in the first half of this year.
PayNearMe Express is tailored for property managers, daycares, collection agencies, and lending companies. The company’s volume has tripled year-over-year between 2011 and 2012. Their biggest limitation is the technical integration that the company requires. Fortunately PayNearMe Express requires much less technical integration.
One major advantage of using PayNearMe is that lenders and property managers have an alternative to touching cash or money orders. Cash and money orders do not have a trace on it.
“If I paid you with a check and you credited the amount, I could show you the cancelled check. But if you entered the wrong amount or you credited the wrong account [with cash or a money order, e.g.], we’ve got a conflict and there’s no way to resolve it,” stated PayNearMe CEO Danny Shader in an interview with TechCrunch. “Cash is a security risk.”
Going forward, the company will focus on bringing their payment system to smaller merchants like online stores. The company may even launch a widget for online stores.