PayNearMe has closed $20 million in funding. GSV Capital led the round with participation from August Capital, Khosla Ventures, Maveron and True Ventures. Based in Sunnyvale, Calif., PayNearMe is an electronic cash-transaction network.
PayNearMe, a start-up that lets Americans make purchases online and then pay with cash in real-world stores, has raised $20 million in a funding round led by GSV Capital. August Capital, Khosla Ventures, Maveron and True Ventures also participated in the round.
While Silicon Valley heavyweights and start-ups are scrambling to develop the latest, coolest mobile-based payments systems, PayNearMe is targeting the tens of millions of underbanked Americans who still need, or prefer, to pay with cash.
Companies such as online retailers, property management firms, utilities, and auto-lenders can join the PayNearMe network, providing customers with a code at the checkout.
The customer then takes the code – either printed out, on a card, or on a mobile app – to participating retail locations, including 7-Eleven stores nationwide, and pays with cash at the register.
Danny Shader, CEO, PayNearMe, says: “At PayNearMe, we have made it a priority to level the playing field by making it easy for every consumer to participate in the digital economy, even if they prefer to pay for goods and services with cash.”
In addition to the latest funding, PayNearMe also revealed today that it has struck a deal with the Family Dollar chain of stores, bringing its total network to 17,000 locations throughout the US.
Having seen its payment volume triple in 2013, the company says that it will use the new funding to expand in existing markets while also targeting new areas such as self-storage, healthcare and online entertainment.