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:
- PayNearMe is the cash transaction network that makes it easy for payees to accept cash payments quickly and easily through any of 17,000 participating 7-Eleven, Family Dollar, and ACE Cash Express stores nationwide.
- Customers can go to their local 7-Eleven or Family Dollar store at any time of day or night and make a payment in less than 60 seconds according to their website.
- Once the PayNearMe PaySlip is scanned or Card is swiped and payment is made, the merchant is immediately notified that good funds have been received. The transaction is completed at the store register in real time.
- The customer walks away with a receipt that can also contain detailed information such as, purchase details, ticket information.
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.