PayNearMe Secures $16 Million in Funding to Expand Its Cash Payment Network

MOUNTAIN VIEW, Calif., Nov. 16, 2010 /PRNewswire/ -- PayNearMe, the cash payment network, today announced that it has closed a $16 million round of financing led by Khosla Ventures. New investor August Capital and current investors True Ventures and Maveron also participated in the round. The company will use the funds to expand its network of retailer payment locations and payees, and to launch new service offerings, including its new mobile payment option, announced separately today.

PayNearMe also announced that payments veteran Mark Britto, CEO of BOKU and former BillMeLater board member, will join the company's board of directors.

"We look to work with great entrepreneurs in big markets undergoing disruptive change," said David Weiden, general partner of Khosla Ventures.  "Danny has brought together a terrific team, and we are confident payment services with otherwise un-banked and under-banked consumers will change fundamentally over the next decade."

"We like to invest in companies that solve problems in large, underserved markets," said David Hornik, general partner of August Capital. "By combining the broad appeal of cash with PayNearMe's highly flexible technology platform, the company can serve consumers and payees in almost every industry, including ecommerce, lending and transportation."

"When I realized that PayNearMe could significantly improve consumers' financial lives by offering cash payment services that are better, faster and significantly less expensive than existing alternatives, I wanted to get involved," said Mark Britto, PayNearMe's newest board member.  "Plus, I know from my experiences at BOKU, BillMeLater and FirstUSA how valuable a new payment network can be to merchants if, like PayNearMe, it allows them to unlock large segments of new demand."

"Every entrepreneur wants to work with board members and investors who share their passion for breaking the mold and building important businesses," said Danny Shader, CEO of PayNearMe. "With David, David and Mark's support, we will continue to build our suite of convenient, reliable, inexpensive and fraud-free offerings for consumers and payees across the United States."

About PayNearMe

PayNearMe enables consumers to pay conveniently with cash for a wide variety of goods and services from leading companies in e-commerce, direct response and catalog marketing, consumer finance and beyond at a local store, starting with more than 6,000 7-Eleven stores across the United States. For more information, visit www.paynearme.com.

SOURCE PayNearMe