Paydiant raises $15 million for mobile wallet tech

Paydiant raises $15 million for mobile wallet tech

Summary: Boston-based Paydiant makes a white-label mobile wallet. It now has millions more to do so.

TOPICS: Banking, Start-Ups

Paydiant, the Boston-based startup that makes "mobile wallet" technology for retailers, banks and payment processors, announced this morning that it raised $15 million from investors.

The Series C round included North Bridge Venture Partners, General Catalyst Partners, Stage 1 Ventures and two of its customers, whose names were not disclosed. It's the company's largest financing round yet, and brings its total raised to just under $35 million.

The company plans to use the money for product development, sales and marketing for its technology, which includes capabilities for card-less ATM access and an offer redemption/loyalty service.

The three-year-old company distinguishes itself in a crowded field by developing for existing smartphones, point-of-sale systems and payment terminals, rather than requiring the purchase of new infrastructure.

It offers an application programming interface, or API, that allows its customers to integrate "mobile wallet" capabilities—contactless mobile payments, e-receipts, offer redemption and cardless cash access—into their own mobile applications for Apple's iOS and Google's Android operating systems.

In terms of security, Paydiant says that it provides for the processing of credentials without storing them locally on the device and without passing them through a retailer's point-of-sale system.

"The market opportunity is huge," co-founder Chris Gardner said.

Topics: Banking, Start-Ups

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

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