February 7, 2014
According to Estimates from FDIC, 10 million American households don’t have bank accounts and 24 million are underbanked, representing 8.2 percent and 20.1 percent respectively. PayNearMe’s solution enables people to buy products and make payments online, using cash. On 6th February 2014, the company announced that it had raised another $20 Mn in funding.
PayNearMe was founded in March 2009 by Danny Shader (CEO). The company has received a total funding of $56.5 Mn through investors True Ventures, Kapor Capital, Fenwick & West, Endeavor Partners, Floodgate, Maveron, Khosla Ventures, August Capital and GSV Capital.
PayNearMe (previously Kwedit) based in California allows its users to pay or receive cash through payment outlets setup in the neighborhood. PayNearMe has partnered with 7-Eleven and Ria Financial Services to pay and wire funds through cash. Through PayNearMe’s services a user can make travel reservations, shop online or pay bills. All this can be done by walking in to any of the 50,000 7-Eleven outlets across USA. PayNearMe also has business partnerships lined up with Amazon, Greyhound and Sochitel UK. PayNearMe’s business concept gives a direct competition to established companies like Western Union.
This video gives you an overview of their platform:
Danny Shader, CEO of PayNearMe acknowledges the latest $20 Mn funding as a ‘real game changer’. 'It's great to have the financing and the ability to expand our footprint. We've made it a priority to level the playing field by making it easy for every consumer to participate in the digital economy,' he said.