Wellesley based Paydiant has just announced that it has raised $12 million in series B funding. The new round of funding was led by Stage 1 Ventures and also included participation from existing investors North Bridge Venture Partners and General Catalyst Partners. Paydiant has previously raised a $7.6 million series A back in February of 2011.
Paydiant provides banks and retailers with a white label mobile payment solution that enables them to quickly deploy a branded, contactless mobile wallet, mobile payment and cash access platform. The new investment will be used to accelerate product development, sales and marketing.
“Stage 1 Ventures has a number of investments in the retail offers and mobile offers arena,” said David Baum, Managing Director at Stage 1 Ventures. ”We believe that Paydiant’s solution is unique in its ability to deliver integrated mobile payment, offer redemption, and e-receipts today, and have it work with the payment terminals and smartphones available both today and in the future. It’s very well positioned.”
“Consumers want to be able to pay with their mobile phones. It’s a huge market opportunity but the most hyped approaches have some fundamental stumbling blocks,” said Chris Gardner, co-founder of Paydiant. “One, they require merchants to upgrade their point-of-sale infrastructure at a huge cost. Two, they require retailers and banks to share an incredibly valuable asset – their customer transaction data. Paydiant gives retailers and banks control over this critical customer touch point and all the incremental revenue and customer loyalty opportunities that come with it. We believe this approach will accelerate the adoption of mobile payments and offer redemption and all the advantages they offer for consumers and retailers.”