PayNearMe scores $10 funding round
23 January 2013 | 1349 views | 0
PayNearMe, the cash transaction network, today introduced PayNearMe Express, a self-service system that dramatically expands the range of businesses that can leverage the PayNearMe service.
PayNearMe Express makes it possible for any business to accept cash remotely for goods or services from consumers via more than 8,600 local 7-Eleven® and ACE Cash Express® stores throughout the U.S. Today, PayNearMe Express supports payments for rent, collections, lending, and education with additional applications to be released in the coming months.
PayNearMe also announced that it has closed $10 million in additional funding led by August Capital with participation from existing investors Khosla Ventures, Maveron, and True Ventures.
PayNearMe Express is the first offering of its kind, enabling almost any business to welcome cash payments from consumers, 24 hours a day, seven days a week, throughout the U.S. This capability is especially valuable to businesses with a limited physical presence. The new self-service offering does not require any changes to a merchant's existing infrastructure, and the online sign-up process can be completed in minutes.
Like the existing PayNearMe service, PayNearMe Express eliminates the need for additional resources often required to accept and handle cash or cash equivalents, yet it allows businesses to serve the 25% of households that are un- or under-banked; those among the remaining 75% who are reluctant to use credit or debit cards; and teens, 95% of whom prefer to pay with cash.
"PayNearMe Express makes accepting cash as easy and convenient as accepting plastic," said PayNearMe CEO, Danny Shader. "It allows businesses that cannot accept cash in-person because they lack a local presence to serve significantly more consumers. Plus, for local service-oriented businesses like lenders and property managers, it removes the hassle, resource drain, and transactional headaches associated with on-site cash payments."
Cash Payments Made Easy for Both Merchants and Consumers
Once businesses complete the easy online sign-up process, they can accept cash payments immediately by directing consumers to http://www.paynearme.com. There, consumers print a unique barcoded PaySlip or send it to their mobile phones. Then they present their printed or mobile PaySlips and cash at a local 7-Eleven or ACE Cash Express. The transaction takes less than 60 seconds, and payees are notified in real-time. Transactions are 100% guaranteed good funds with no risk of chargebacks or NSFs (bounced checks), which are common problems with credit cards, ACH, and checks.
"We have never accepted cash payments from our tenants because of the security risks and handling issues involved, and cashier's checks and money orders are a big hassle for our renters," said Bob Abbott, owner of Alarca Realty, the Charlotte area's income property experts. "With PayNearMe Express, we save time and reduce resource requirements. Tenants can pay the way they want at a location that's convenient to them -- even after work or on weekends when our offices are closed. We couldn't ask for a better way to collect rent and serve our tenants."
New Funding Supports Further Cash Payment Innovation
PayNearMe also announced that it has closed a $10 million investment round led by August Capital. The funds will be used to continue expanding the PayNearMe platform and further scaling the business.
"PayNearMe excels at doing what no one else in the payments landscape has attempted - innovating with cash," said David Hornik, general partner at August Capital and PayNearMe board advisor. "We enthusiastically support the PayNearMe team as they scale and continue to help the millions of Americans who are unbanked or underbanked plus those who simply prefer to pay with cash."