PayRange Secures 12M To Fund Its Vending Machine Payments Technology

SAN JOSE, CA -- PayRange has closed on $12 million in Series A funding led by Matrix Partners. PayRange, which is expected to use the capital to help deploy its mobile payment technology, said it selected Matrix to lead its funding round based on the global firm's 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 applies sophisticated technology in an elegant, affordable way to remove all payment friction from the vending experience," Fliesler said. "In doing so, it generates happier customers and more revenue for operators. It also provides the potential to sell a wider range of products at varying price points and the tools to operate these machines as mini retail centers."

PayRange is also backed by seed investor Nyca Partners, a venture capital and advisory firm. Through Nyca, PayRange is supported by payments industry luminaries, including Hans Morris, managing director and former president of Visa, as well as investment partners Max Levchin, cofounder of PayPal, and Osama Bedier, creator of Google Wallet.

In six months since shipping its first devices, PayRange reported that it has sold to more than 680 operators who service 1 million machines in the U.S. Canada.

The PayRange device plugs into the back of a vending machine and leverages BLE (Bluetooth Low Energy), enabling customers to connect directly to it through the PayRange app, available in the Apple App and Google Play stores. Customers simply launch the app, select a payment instrument and choose a nearby machine. The selected machine will instantly show their balance, and customers can make their purchases. No personal information is sent to the machine, and credit card numbers are managed securely by a PCI-compliant processor. PayRange supports Apple Pay, and Android Pay capability is reportedly in the works.