Helping separate itself from the growing pack of consumer payments platforms, PayNearMe‘s partnership with the Family Dollar retail chain will bring the company’s cash payment solution to more than 8,000 locations in 40 states.
“Footprint” has been the company’s biggest limitation, according to PayNearMe CEO Danny Shader. With the technology already in use at 7-Elevens and ACE Cash Express, the addition of Family Dollar will expand PayNearMe’s reach to 17,000 payment locations.
PayNearMe also announced a major new funding: $20 million in a round led by GSV Capital, with existing investors August Capital, Khosla Ventures, Maveron, and True Ventures also participating. The company’s total funding now stands at more than $56 million.
A cash transaction network, PayNearMe provides an easy way for cash-based consumers to pay bills, rent, auto loans, and other obligations at designated payment locations. The solution benefits consumers who prefer to pay with cash, retailers who gain additional foot traffic to their brick and mortar locations – as well as earning commissions from their PayNearMe payments, and merchants looking to expand their customer base by accepting cash.
According to PayNearMe, the cash economy remains important, especially for the underbanked. They note:
- More than 28% of U.S. households are un- or underbanked
- 68 million adults living in the U.S. are un- or underbanked
- 54% of U.S. adults cite cash as their preferred form of payment
For its part, PayNearMe has experienced major growth, including a tripling of payment volume from 2012 to 2013.
PayNearMe demoed its technology as part of the FinovateFall 2011 show in New York. See the company in action here