PayRange, the maker of a small device that enables every MDB vending machine to accept mobile payments, has raised $12 million in Series A funding led by Matrix Partners. The new source of funding will be used to expand the staff and increase the number of PayRange-equipped machines.
The company is working towards saving old vending machines by giving them new lives with its technology. PayRange transforms vending machines to accept contactless payment from a smartphone app. As we live in an evolving world where people prefer to pay with credit cards, the company wants the vending machine to catch up with the times.
PayRange’s device can be used by attaching it to the back of vending machine using a standard port similar to a USB port on a computer. Owners of vending machines can purchase this device at $49 each.
Consumers need to download the PayRange app, link their credit card information and fund an account. At the time of payment, a customer stands near a machine, opens the app, chooses the credit card for payment, and finally selects the machine the consumer is standing next to from the list of nearby machines that show up on the phone’s screen to complete the transaction.
PayRange’s device picks up wireless signals from nearby smartphones by using Bluetooth technology. According to PayRange, no personal information is sent to the machine and credit card numbers are managed by a processor that is compliant with industry security standards.
There are 80 million consumers in the US who make purchases every day from approximately 8 million machines nationwide. Yet 98% of purchases made with vending machines are completed with cash because only 5% of vending machines accept credit and debit cards.
“The expectation of paying by cash and coin is particularly painful for the tens of millions of consumers who use vending machines as their work or school fridge,” said PayRange Founder and CEO Paresh Patel. “These are not casual users. They visit the same machines every day and deserve an easier way to buy their morning coffee, bottled water, sandwich, or afternoon snacks.
“Nearly half the time someone walks up to a machine with the intent to purchase, he or she leaves empty-handed because the buyer simply doesn’t have the right change,” continued Mr. Patel. “This results in billions of dollars in sales lost each year. PayRange solves this problem by offering operators an easy and affordable way to accept any form of payment to capture those lost sales.”
PayRange was founded in 2013 by Paresh Patel in order to provide operators and consumers with the simplest, most accessible and most efficient payment solution ever designed for a machine. Consumers can download the free mobile app from the Apple App Store or the Google Play Store to painlessly make transactions at unattended points-of-sale. PayRange has offices in Silicon Valley and Portland, Oregon, and the company is backed by Matrix Partners, Nyca Partners, Google Ventures and individual investors. Find out more at www.payrange.com or watch this video:
About Matrix Partners:
Matrix Partners backs entrepreneurs with the vision and drive to make a difference in the world. The company’s general partners are experienced entrepreneurs with the resources and commitment to amplify entrepreneurial efforts, helping them succeed. From their beginnings with Apple, Sycamore Networks and Veritas, to recent investments in Oculus VR, Zendesk, Hubspot, JustFab, Gilt, Meteor and more, they have earned the trust of each founder they have supported. Matrix Partners has offices in Palo Alto, Cambridge, Shanghai, Beijing and Mumbai. Find out more at .