Payfone Lands $23.5 Million in Funding


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


  • 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.


Finovate Alumni News


  • Check out this week’s “FinDEVr APIntelligence”
  • “Loan Matchmaker Lendio Posts 2015 Growth Numbers”
  • “Open API! Shamir Karkal to Head BBVA’s New Developer Platform”

Around the web

  • eWise expands data aggregation network to include institutions in Singapore and Thailand.
  • Peel Hunt Technology’s sector report highlights Featurespace.
  • ThreatMetrix enters into agreement with FUJI SOFT to provide online fraud solutions to Japan.
  • Lending Club opens to retail investors in Maryland and North Dakota, bringing its total to 45 states and Washington D.C.
  • Striata makes its Secure Document Repository (SDR) available for general release.
  • Spend Matters interviews Cedric Bru, Taulia CEO.
  • Zooz taps former Worldpay executive Chester Ritchie as its new EVP of sales and development.
  • Temenos announces plans for $500 million refinancing of its banking facilities.
  • Payfone deploys at an additional tier-1 bank in the U.S., now protects 50+ million U.S. accounts.

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

ID Analytics, Payfone Win at 2015 Fierce Innovation Awards


ID Analytics won first place in its category at the 2015 Fierce Innovation Awards: Telecom Edition. The company impressed judges with its ID Connect solution, launched in September, which makes it easier to onboard and enroll customers digitally.

IDAnalytics_logoID Connect validates identity with a minimal amount of information, helping businesses increase conversions and lower abandonments. The solution auto-fills application fields and risk assesses the user in seconds. The SaaS technology can be combined with ID Connect Photo, which uses a government-issued ID card to populate fields.

Also taking top honors at the event was Payfone. Payfone won the Over-the-Top (OTT) Monetization category with its Payfone Signature technology, and also won the Customer Security category with its Identity Certainty Platform.

Payfone_logo_Nov2015Payfone Signature is a deterministic, trusted mobile identity that, according to the company, “cannot be forged, cloned, spoofed, or hacked.” The technology uses data from the mobile network operator level to “permanently bind, verify, and subscribe” mobile identity at the account level. The result is what Payfone calls “a persistent mobile ID.” Identity Certainty leverages the Signature technology to provide organizations with the ability to provide seamless yet secure access to sensitive business information.


The Fierce Innovation Awards span 24 different categories and feature an additional six companies singled out for “Best in Show” recognition. Judges for this year’s competition included representatives from the Verizon Innovation Program, TeliaSonera International Carrier, Comcast, and T-Mobile USA. Companies were judged based on:

  • technological innovation
  • financial impact
  • market validation
  • compatibility with existing network environments
  • end-user customer experience

Founded in 2002 and headquartered in San Diego, ID Analytics demonstrated its platform at FinovateFall 2015. Payfone demoed its 1 Touch Checkout solution at FinovateFall 2012. Payfone was founded in 2008 and is based in New York City.

Finovate Alumni News


  • “Thinking Capital and Flybits earn Deloitte’s Technology Fast 50 Canada Awards”
  • “ID Analytics, Payfone Win at 2015 Fierce Innovation Awards”

Around the web

  • American Banker features PayActiv in a look at budgeting apps.
  • Let’s Talk Payments presents a roundup of wealth managers turned robo-advisers, including Nutmeg.
  • Yodlee features how DoubleNet Pay enables automatic bill pay and financial health for employees.

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

IDology Announces “Significant” Strategic Equity Investment in Payfone


IDology, an identity-verification specialist out of Atlanta, has made a strategic equity investment in mobile authentication startup and fellow Finovate alum, Payfone.

Terms were not immediately available, but the investment was described as “significant” by IDology, according to reporting at American Banker. And as part of the investment, IDology has integrated Payfone’s network authentication into its ExpectID Mobile solution.

With this move, IDology will add both network authentication and transaction monitoring to its ID verification and anti-fraud solutions. ExpectID Mobile works by establishing a persistent mobile identity for each consumer that can be maintained through multiple life cycle change events. The mobile identity is resistant to mobile fraud tactics and can be created with or without ID verification.


IDology CEO John Dancu added that the partnership reflects IDology’s commitment to mobile technology that “strike(s) a balance between convenience and security” and provides “frictionless access to products and services.” Payfone CEO Rodger Desai called IDology an “excellent strategic partner” and said the new relationship also would be an opportunity for his company to fight fraud in markets such as alternative finance and payment gateways.

Recent headlines for IDology include the fall 2015 launch of its email validation technology, ExpectID Email in September, and picking up the Southeastern Software Association Impact Award from the Technology Association of Georgia in the Technology Solutions Provider category in May. A finalist in the 2015 Business Intelligence Group (BIG) Innovation Awards, Payfone made a major pivot two years ago to focus its technology away from payments and toward authentication. Read more about Payfone in an interview with Desai in the New York Business Journal.

Founded in 2003, IDology demoed its ExpectID Enterprise solution at FinovateFall 2012 in New York. Payfone also made its Finovate debut at the fall conference in New York in 2012. Founded in 2008 and headquartered in New York City, the company demonstrated its 1 Touch Checkout solution.

Finovate Alumni News


  • “IDology Announces “Significant,” Strategic Equity Investment in Payfone
  • “Worldpay Goes Public; Shares Rally on Trading Debut”

Around the web

  • Fastacash announces strategic investment in Myanmar-focused, MyPAY.
  • American Banker interviews CEO Manolo Sanchez, BBVA Compass.
  • Persistent Systems announces technology partnership with Municipal Corporation.
  • Independent.IE features CurrencyFair, Expensify, and PayPal in a review of 20 PFM apps.
  • Fox Business interviews Blooom President Greg Smith on the future of 401(k) plans.
  • Silicon Review lists SnoopWall as 1 of 20 fastest growing security companies.
  • The Hindu features Cloud Lending Solutions’ co-founder Snehal Fulzele.
  • Interactions wins bronze Stevie Award in the Most Innovative Tech Company of the Year category. This is its fourth consecutive Stevie Award.
  • interviews Kristo Kaarmann, TransferWise co-founder.
  • The Culture Trip highlights Kantox in its review of successful Barcelona startups.

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

Finovate Alumni News


  • “American Banker’s “20 Fintech Companies to Watch” Features Eleven Finovate Alums”
  • “Kabbage’s Fresh $135 Million to Help Grow Karrot Consumer Lending Platform”
  • “Hoyos Labs Unveils 4F Smartphone Authentication Technology”

Around the web

  • IDology makes an equity investment Payfone.
  • Insuritas to install insurance agency solution for MAC FCU’s 14,000+ members.
  • PocketSmith launches in Xero Add-On Marketplace.
  • Fidor Bank wins in two categories, Lending Club and Idea Bank both come in first, at BAI Retail Delivery’s Global Banking Innovation Awards.
  • WSJ features BehavioSec and Nymi in article “The Next Security Frontier: The Human Body”
  • mBank launches biometrics in its mobile application dedicated to corporate customers.
  • PYMNTS profiles Moven in the wake of its recent $12 million fundraising.
  • Markit unveils cloud-based, Know Your Third Party (KY3P) service to make it easier to manage third-party risk-processes.
  • Blackhawk Network and Stockpile partner to make eGift cards for stock available at select retailers in the U.S.
  • Meniga receives a World Summit Award for best technological solution in e-business and commerce.
  • TechCrunch: “Ping Identity Opens Up About Its Financials As It Eyes 2017 IPO”

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

Early Warning Acquires Authentify


Authentify, a company that offers phone-based, multifactor authentication to more than 1,200 financial institutions and e-commerce companies, today announced it will soon be acquired.

The acquirer is Chicago-based Early Warning, a company owned and governed by the largest banks in the U.S. and which provides risk-management solutions to 1,100 banks, government entities, and companies. Once the Authentify acquisition is under its belt, Early Warning will bolster its current offering with a multifactor authentication solution that integrates multiple channels and authentication methods.

The terms of the acquisition were not disclosed.


This is not Early Warning’s first move to broaden its offerings. In 2013, the Arizona-based company partnered with Payfone to combine device and customer-identity authentication with transaction data to ensure security. Early Warning has an equity stake in Payfone.

Authentify was founded in 1999 and Peter Tapling is CEO. The company demonstrated 2CHK at FinovateFall 2011.

Alumni News—February 18, 2015

  • Mitek launches Commercial Mobile Deposit Capture, bringing MDC technology to the enterprise.
  • Malauzai reports doubling revenues, growth of customer base to more than 300 community banks and credit unions.
  • D3Banking adds to leadership team with four new appointments.
  • Check out FinovateEurope 2015 in the press.
  • Bluefin Payment Systems to provide Decryptx point-to-point encryption (P2PE) solution to Heartland Payment Systems’ clients.
  • Temenos purchases Akcelerant to accelerate growth in North America.
  • Lending Club partners with BancAlliance, a national consortium of 200 community banks.
  • Fast Company lists BehavioSec, Ripple, Braintree, Expensify, NICE and BlueVine as top innovative companies in the money category
  • PYMNTS discusses retail’s adoption of mPOS with Bluefin Payment systems.
  • ayondo clients now receive free access to real time analysis tools from StockPulse.
  • Kantox uses Apply Financial’s API to enhance customer service and enable more integrated international payments.
  • TechFlash interviews Payfone CEO and co-founder Rodger Desai.
  • Stockhouse: TIO Networks poises to capture major portion of mobile payment market.
  • USA Today highlights for student debt management.
  • TransferWise launches in United States.
  • Code CU to use Insuritas for insurance agency solution.
  • Coinbase Android and iOS apps now available in 11 new languages.
  • Global Financial Private Capital selects HiddenLevers to help advisors grow their practice.
  • Tradier’s API takes 15 million production calls in Jan., a 33% increase in a single month.
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.

Alumni News– December 10, 2014

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgNCR to sell new mobile imaging solutions from Mitek.
  • Backbase teams up with Accenture to help FIs improve customer engagement through digital channels.
  • Dwolla announces role as payment partner for Microsoft for Government initiative.
  • Australia-based ME Bank deploys core banking system, business intelligence, and anti-money laundering solutions from Temenos.
  • MasterCard launches MasterPass in France and Russia.
  • Finovate Debuts: eMoney Advisor Provides Financial Advisors with a Suite of New Planning Tools.
  • Independent Financial Advisor takes a look at Motif Investing and Wealthfront.
  • Xero reaches 400,000 paying customers.
  • Entersekt responds to FIDO Alliance’s U2F specifications with its FIDO U2F-enabled authentication solution, Transakt.
  • Fintech for the Rest of Us blog mentions PayStand over PayPal and Stripe for bitcoin payments.
  • PayItSimple integrates with 30 more payment gateways in collaboration with Spreedly now integrated with approximately 70% of all gateways in the US.
  • Payfone and Early Warning partner on mobile authentication. 
  • Marlborough Savings Bank now offers Kasasa to enhance checking account offering.
  • Spend Matters reports: Receivables Exchange the largest of the Online Invoice Auction Exchanges.
  • Arxan announces enhanced mobile runtime app self protection (RASP) capabilities.
  • Lendio named One of Utah’s Best Companies to Work For in 2014.
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.

Alumni News– November 14, 2014

  • Finovate-F-Logo.jpgIntelliResponse acquired by [24]7 for its customer service suite.
  • Another +1 For Host Card Emulation: SimplyTapp Garners $6 Million.
  • Financeit Brings in Fresh Funding After U.S. Launch.
  • Payfone selected as “Best Revenue Creator/Enhancer” for Mobile Network Operators in the 2014 Fierce Innovation: Telecom Edition Awards.
  • InComm & PayPal collaborate to offer digital gift cards.
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.