Mobile Payment Platform Paydiant Raises $15 Million in Funding
Paydiant.com, a startup that has developed a mobile payments platform that banks, retailers, and payment processors can implement in their own apps, announced today that it has raised another $15 million in funding. The company has now raised around $35 million.
Paydiant says the round was kicked off by one of its Fortune 500 customers. Existing investors North Bridge Venture Partners, General Catalyst Partners Stage 1 Ventures, and another one of Paydiant’s customers, also participated in the round. Not surprisingly, the company says the funding will be used for product development, marketing and sales.
“Everybody that’s trying to solve the mobile payments problem seems to have Visa envy,” Paydiant co-founder and CEO Chris Gardner told in an interview last year around its last round of funding. “We said, hey, regardless if that becomes a viable model, we believe there’s an opportunity for someone to offer mobile wallets and offers solutions to brands.”
Paydiant’s platform is notable for working with existing point-of-sale terminals, ATMS, smartphones, and other devices, without the need for any new hardware. Instead of betting on near-field communications technology like the mobile-carrier backed Isis, Paydiant lets you scan a barcode with your phone’s camera to process a payment. The company claims its platform also doesn’t make your account credentials available during a transaction, which lowers the potential for fraud.