PayNearMe Raises $50 Million to Enter New Markets

The Series E investment from AVP (Atlantic Vantage Point) is designed to speed PayNearMe’s expansion into new markets and fuel investment in products to simplify the end-to-end payment experience for its customers, the company said Tuesday (Sept. 16).

“For too long, payments have been treated only as a cost of doing business,” Danny Shader, CEO of PayNearMe, said in a news release.

“We see improving payments as a powerful opportunity to help businesses differentiate, drive customer satisfaction, and improve business results. AVP’s funding will allow us to deliver the benefits of Payment Experience Management to more clients and in new markets.”

According to the release, PayNearMe’s service accelerates payments and reduces the total cost of acceptance, thus helping improve cash flow and profitability.

Also Tuesday, the company announced it had renamed its platform to PayXM, the “industry’s first platform that is purpose-built to dramatically improve the end-to-end payment experience,” the news release added.

PayXM lets businesses manage the entire payment journey, for all major forms of payment and through the most popular channels, with a sole platform and integration.

“PayNearMe has redefined what it means to deliver a modern payment experience. The company is uniquely positioned to solve challenges in a space long underserved and overlooked,” said Elizabeth de Saint-Aignan, head of AVP’s North American growth found and a general partner in the firm.

“PayNearMe’s vision and proven execution are changing how non-commerce businesses approach payments, and we’re excited to support them in this next stage of growth.”

Research by PYMNTS Intelligence has charted the pain failed payments can cause for companies, with 82% of executives struggling to determine why their payments fail, because of a fragmented view of consumer data.

“This lack of insight results in substantial revenue losses,” PYMNTS wrote last summer. “In the past year, eCommerce players experienced a failure rate of more than 10% for online transactions, translating into $31 billion in lost retail sales in Q3 2023.”

The ripple effect from these failures goes beyond immediate revenue loss, as more than than two-thirds of eCommerce firms say they’ve faced difficulty in reclaiming customers lost because of payment issues. 

“Vaulting addresses these challenges by providing a comprehensive view of payment data,” the report added.

Additional research has found that while 11% of transactions processed by the average eCommerce firm had failed in the prior year, few merchants had a clear understanding of the root causes. 

“In fact, over 80% cite difficulty in pinpointing the causes of failed payments as a major challenge, with nearly 64% ranking it as their top challenge,” PYMNTS wrote.