Why fight to rule the mobile payments landscape when you can empower others?
Paydiant, 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 and General Catalyst Partners Stage 1 Ventures also participated in the round as well as another one of Paydiant’s customers. 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 cofounder and CEO Chris Gardner told VentureBeat 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 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.