Payfone Receives $23 Million in Funding from Synchrony Financial

Digital identity authentication company, Payfone raised $23 million today. This Series F round brings the company’s total funding to $93.6 million.

Payfone will use the financing to expand its user experience by enhancing security services in retail, insurance, and healthcare. The round was led by an institutional investor with participation from Synchrony Financial, MassMutual Ventures, as well as individual investors Anil Aggarwal, Jonathan Weiner, and Andrew Prozes.

In a press release, Rodger Desai, founder and CEO of Payfone explained that consumers will increasingly expect that transactions are mobile-first, secure, and fast. He added, “The days of using quizzes, questions and one-time codes to verify identity are numbered. Payfone is ushering in a new world where authentication is instant, passive and continuous using the most advanced cybersecurity. Our mission is to help clients across the financial, retail, insurance, healthcare, and technology industries use authentication to not only thwart fraud but drive revenue.”

Payfone, which was founded in 2008 as a mobile payments company, demoed 1-Touch Checkout at FinovateFall 2012. The New York-based company has since pivoted to focus on authentication solutions.

Among Payfone’s product offerings are Instant Authentication for Mobile, a frictionless two-factor authentication solution, and Instant Authentication for Voice, an API that uses the caller’s phone number to authenticate them. The company also offers a Trust Score that provides a measurement of the reliability and risk of each mobile device.

Managing director at MassMutual Ventures, Eric Emmons, said, “Payfone enables service providers across the financial, retail, insurance, healthcare and technology sectors to offer a frictionless mobile and online experience to their customers, which substantially improves conversion rates and dramatically reduces the cost of call center operations.”

Payfone, whose technologies are currently used by six of the top 10 U.S. banks, processes millions of signals per day to authenticate and score transactions; the company currently authenticates 10 million transactions per day. Earlier this year, Payfone partnered with O2, a U.K.-based mobile network operator, in an effort to protect mobile users from digital fraud. Last spring, the company announced it would power mobile ID authentication for Zelle.

Finovate Alumni News

On Finovate.com

  • Payfone Receives $23 Million in Funding from Synchrony Financial.
  • Clinc Tops $4.5 Million in Annual Revenue; Hires Helen Yu as Chief Growth Officer.
  • Payworks Completes $14.5 Million Series B Round.
  • Bankjoy Brings New Online and Mobile Banking System to SafeAmerica Credit Union.
  • Placecast Acquired by Ericsson’s Emodo.

Around the web

  • GreenKey Technologies to release its voice API through OpenFin’s plugin architecture
  • TipRanks offers stock tracking tool to manage investments and maximize returns.
  • Worldline selects VMware to accelerate innovation and time to market.
  • Japanese personal care company selects Top Image Systems’ eFLOW Extract accounts payable solution.
  • Kestra Financial to offer eMoney Advisor’s financial planning platform to its advisors.
  • TIBCO ranked first in Dresner Advisory Services 2018 Location Intelligence Market Study.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Payfone Teams Up with U.K. Mobile Network Operator

Digital identity authentication company Payfone has partnered with O2, a U.K.-based mobile network operator. The initiative aims to protect mobile users from digital fraud, including cyber-hacks, account takeover attacks, SIM swap attacks, and other forms of fraud.

The two are collaborating on Payfone’s Instant Authentication for Mobile, a behind-the-scenes, identity verification solution that enables enterprises to authenticate their clients quickly and securely by using a Trust Score that is generated by analyzing millions of digital signals against multiple authentication factors. One of those factors is real-time authentication from O2, which relies on a mobile phone and does not require the user to switch between channels, such as in two-factor authentication.

Payfone CEO Rodger Desai said, “Payfone is already on track to authenticate 50,000,000 transactions per day in the United States, and extending our capabilities into the United Kingdom is a major milestone for us as we continue our expansion into 35 worldwide markets.”

Originally a mobile payments company, Payfone was founded in 2008. The New York-based company has since pivoted to focus on authentication solutions, adopting the motto, “Delight users. Defeat hackers.” Payfone, whose technologies are currently used by six of the top 10 U.S. banks, processes millions of signals per day to authenticate and score transactions; the company currently authenticates 10 million transactions per day. Last spring, Payfone announced it would power mobile ID authentication for Zelle.

Finovate Alumni News

On Finovate.com

  • Japanese Telecom NTT to Distribute Trusona Technology in Japan.
  • RealtyMogul Introduces new President, Aaron Halfacre.
  • Tradeshift Launches Innovation Center to Bring the Blockchain to Business Commerce.
  • Payfone Teams Up with U.K. Mobile Network Operator.
  • Expensify Reports More than 1 Million New Users and Double the Partnerships in 2017.

Around the web

  • Auto Finance Excellence talks with AutoGravity CTO Sheng Wang, who discusses the company’s new security features.
  • Sam Maule talks with Kabbage founder Rob Frohwein.
  • F&M Bank selects Geezeo to enhance digital banking.
  • Kantox partners with BELLIN to help support SMEs expanding globally.
  • Mitek and IdentityMind announce integration to enhance their digital ID verification capacities.
  • Zopa re-opens its platform for new customers.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • 44 Alums Populate CB Insights’ Fintech 250 List.

Around the web

  • ProfitStars named a 2017 Top Workplace by The Tennessean for Third Consecutive Year.
  • Top Image Systems seeing momentum from eFLOW AP solution in 2017.
  • Digiliti Money (formerly Cachet Financial) adds new features to its Select Mobile Deposit and Select Business Merchant Capture solutions.
  • CNBC: Tradeshift hoping to ready initial public offering.
  • CoverHound partners with eHealth to expand insurance ecosystem for consumers and small business owners.
  • Payfone to unveil “One-Time Password-Killer.”

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • StockViews Closes Second Round Equity Funding, Earns FCA Authorization.

Around the web

  • EverSafe picks up $250,000 in capital from JP Morgan as one of eight FinLab startup winners.
  • Affinity Plus FCU ($2 billion in assets) to deploy Fiserv’s Architect platform to power its online and mobile banking services.
  • Trusted Key CEO Prakash Sundaresan looks at changing customer expectations, security challenges, and the shifting regulatory landscape through the lens of FinDEVr London.
  • Payfone wins patent for technology that fights SIM swap fraud.
  • Ghana’s Premium Bank chooses NetGuardians’ anti-fraud solution, FraudGuardian.
  • LendingTree acquires DepositAccounts for undisclosed sum.
  • AutoGravity unveils partnership with Fletcher Jones Auto Group.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Payfone to Power Mobile ID Authentication for Zelle

There’s been a lot of hype around real-time P2P payment app Zelle, which is launching at select banks this month, aiming to take on Venmo and PayPal as the leading P2P payment platform. Facilitating the launch, Zelle has tapped New York-based Payfone as a key partner.

Payfone signed an agreement with Early Warning Systems, the parent company of Zelle (formerly clearXchange), which was launched in 2011 in a joint effort among Bank of America, Capital One, JP Morgan Chase, U.S. Bank and Wells Fargo. Under the agreement, Zelle will leverage Payfone’s mobile identity authentication and risk assessment solutions to streamline client enrollment and authentication for transactions.

Rodger Desai, Payfone CEO, said that the company is “uniquely positioned” to provide “instant mobile authentication,” something he described as a crucial element in faster payments. Desai added, “Collaborating with Early Warning to help add further seamless security to Zelle is a shining example of how Payfone makes customer transactions safer and smoother.”

Eric Woodward, group president of the Risk Solutions business at Early Warning, said that Payfone will “significantly simplify” enrollment for new Zelle users via a “non-intrusive” user experience. “This helps us balance the requirements for speed and security in the faster payments space,” Woodward said.

Founded in 2008, Payfone originated as a mobile payments company. It has since pivoted to focus on authentication solutions, processing millions of signals per day to authenticate and score transactions with its new Lotus Trust Score. The company currently authenticates 10 million transactions per day and by year end it anticipates that number will reach 50 million transactions.

Finovate Alumni News

On Finovate.com

  • Cardlytics Closes $12 Million Round.
  • Payfone to Power Mobile ID Authentication for Zelle.

Around the web

  • PayNearMe facilitates $1.6M in child support payments for the state of Michigan.
  • TSYS partners with Featurespace to deliver real-time decision capabilities.
  • Expensify and Bill.com deepen integration for shared clients.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Payfone Lands $23.5 Million in Funding

screen-shot-2017-01-05-at-2-14-55-pm

Mobile authentication company Payfone closed a $23.5 million round of funding today. BlueCross BlueShield Venture Partners and Andrew Prozes led the round, while new investors Strauss Zelnick, Maclab Development Group and Transaction Network Services, along with existing investors RRE Ventures, Opus Capital, Relay Ventures, Early Warning Services, American Express Ventures, Verizon Ventures, and Rogers Venture Partners also contributed.

This Series E round brings the New York-based company’s total funding to just over $66 million and bolsters Payfone’s Board of Directors with the addition of Mike Spadafore of Sandbox Industries and Andrew Prozes, the former CEO of LexisNexis.

When it launched in 2008, Payfone sought to fight the mobile payments battle but pivoted just over 3 years ago to focus on mobile authentication solutions. In its former life as a payments company, Payfone launched 1 Touch Checkout at FinovateFall 2012 in New York. Today, the company offers a non-intrusive authentication option for end clients that uses the identity of their mobile phone to offer persistent protection against fraud.

At the 2015 Fierce Innovation Awards, Payfone won the Over-the-Top (OTT) Monetization and Customer Security categories. In 2016, the company deployed its technology at a Tier-1 bank in the U.S., marking 50 million bank accounts protected by Payfone.

Finovate Alumni News

On Finovate.com

  • AnchorID Adds Apple, SolarCity Vet Mark Roe to Board of Directors.
  • Equifax Shakes Up Mortgage Tech with Castlight Partnership
  • Payfone Lands $23.5 Million in Funding

Around the web

  • Pakistan’s Samba Bank to deploy new core banking technology from Temenos.
  • Infosys’s core banking software Finacle goes live at Nepal’s Sunrise Bank.
  • ACI Worldwide to provide fraud protection for Kuwait’s Shared Electronic Banking Services Company (KNET).
  • Mitek partners with the American Cancer Society, supporting mobile fundraising with its mobile deposit and MiSnap technology.
  • Check Point Software partners with Attivo Networks to improve fraud detection.
  • DAVO Technologies has just been approved as a Certified Electronic Return Originator (ERO) with the California State Board of Equalization.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.