Matrix leads $12M investment in PayRange
By Canadian Vending
By Canadian Vending
June 26, 2015, San Jose, CA – Card and digital payment provider PayRange has received $12 million in Series A funding, led by Matrix Partners, to modernize the $45-billion vending industry.
Currently more than two-thirds of retail transactions are completed with a credit or debit card, resulting in over $4 trillion of card payments annually in the U.S. card acceptance has become ubiquitous as merchants see sales increase an average of 20 per cent or more upon acceptance of credit cards, the company said in a news release. This underscores that today’s consumers expect the option to pay with methods other than cash when they make purchases.
Compare this to the vending industry – an industry where close to 80 million consumers in the U.S. make purchases every day from approximately eight million machines nationwide, it added. Yet, 98 per cent of vending purchases are made with cash because only five per cent of vending machines accept credit and debit cards.
“The expectation of paying by cash and coin is particularly painful for the tens of millions of consumers who use vending machines as their work or school fridge,” said PayRange founder and chief executive officer Paresh Patel in the release. “These are not casual users. They visit the same machines every day and deserve an easier way to buy their morning coffee, bottled water, sandwich, or afternoon snacks.
“Nearly half the time someone walks up to a machine with the intent to purchase, he or she leaves empty handed because the buyer simply doesn’t have the right change,” Patel said. “This results in billions of dollars in sales lost each year.
Additionally, PayRange supports Apple Pay and has planned support for Android Pay through a proprietary Bluetooth platform.
PayRange selected Matrix Partners to lead its Series A based on the firm’s extensive experience in payments and its history of helping founders scale enterprise and consumer companies. General Partner, Jared Fliesler, a former Square executive, will join PayRange’s board of directors.
PayRange is also backed by seed investor Nyca Partners, a venture capital and advisory firm exclusively focused on applying innovation in financial services.
In the six months since shipping its first devices, PayRange has sold to more than 680 operators who manage one million machines across 50 states and Canada, the release said.