Paydiant Inc., a Wellesley firm developing back-end technology for retailers and banks to create their own mobile commerce and payment apps, said Tuesday that it has closed a $15 million round of funding from North Bridge Venture Partners, General Catalyst Partners, Stage 1 Ventures, and two of Paydiant’s customers.
Paydiant’s platform is currently deployed in partnership with prominent card-issuing banks, retailers, restaurants, merchant processors, debit/ATM networks, and POS providers. The company was recently awarded a comprehensive mobile wallet patent for conducting payments in store, online, and for pay-at-the-table transactions, the company said in a press release.
Unlike other mobile wallet solutions that require consumers to buy new phones or retailers to invest in new point-of-sale infrastructure, Paydiant says its white label platform works with existing smartphones, POS systems, and payment terminals.
“The mobile wallet is about far more than mobile payments—it’s a marketing platform,” Chris Gardner, co-founder of Paydiant, said in a statement. “The market opportunity is huge, but most approaches have fundamental stumbling blocks such as requiring costly new hardware or having security issues. Retailers and banks also have concerns about the risks associated with sharing customer data with third party wallet providers. Paydiant, on the other hand, gives retailers and banks control over this critical customer touch point and all the incremental data, revenue, and customer loyalty opportunities that come with it.”
Including the round announced Tuesday, Paydiant has raised $40 million to date.