BuyBox enables social payments, gets $2.3 Mn funding

BuyBox is a French cloud based company established in 2010 that develops social payments solutions. BuyBox also allows online stores to collect group payments for things such as birthday presents. The solution is offered by BuyBox as a white label, enabling e-merchants to integrate group payment functionality into their existing e-commerce processes.

Founded in 2010, in Toulouse, France, BuyBox has grand plans. It has a France based holding company Oonetic and is currently headed by Marc Guedj (CEO-Founder) and Aria Ardalan as the CMO. The company acquired $2.3 Mn Venture funding in January, 2013 through French investors Iris Capital and Midi Capital. Distribution partners such as Atos Worldline and Laser help integrate BuyBox’s offerings into that of their own to e-merchants.

The business model of the firm is to offer a simple SaaS platform for groups and social payments. It allows e-merchants to easily collect added value payments, from sharing purchase of an expensive item to issuing their own merchant social gift cards. Revenue is generated by providing service to large # of sites - through cost effective plans. End users are e-merchants’ customers such as those of Celio, and Micromania (gaming). Buybox has been targeting e-merchants who have a defined social commerce strategy. BuyBox provides solutions worldwide. According to Loic Blanc (Head of Communication, BuyBox) the company has some pilot projects lined up with customers in Germany and Belgium.

There is competition from both B2B payment solution providers and from B2C providers who offer group payment solutions directly to users through their own websites e.g. Leetchi, another French company. Leetchi is a group payment application that allows users to collect and manage money for a group. The company has raised around $8 million with high-profile investors including 360 Capital Partners, Oleg Tscheltzoff (Fotolia), Jeremie Berrebi (Kima Ventures) and IDinvest (formerly AGF Private Equity).

According to Loic Blanc, some of the recent developments from BuyBox include:

  • Small Businesses can tie up with BuyBox from 24,90 euros/month to offer services to their users: for example, each e-merchant can deploy his own social gift card like 'Amazon Birthday Gift'...
  • BuyBox offers full access to their API that allows developers to develop Social Payment applications for their customers.
  • The team at BuyBox is developing Facebook application: this will be rolled out next week.

LTP View: BuyBox can be directly implemented on e-merchant sites and it is a white label solution (customizable). What I liked was that it enables consumers to invite friends to pool together in order to buy goods, holidays, and gift cards. The concept is not new but applies to many situations in real life like birthdays, parties and marriages. With new players coming up each day in the payments vertical, BuyBox will have to continuously innovate itself to stay in tune with industry.