Payments Company Jumio Raises $25.5M From Andreessen Horowitz; Will Hit $100M In 2012 Revenue
Disruptive mobile and online payments startup Jumio has raised $25.5 million in Series B funding led by Andreessen Horowitz. The firm?s General Partner Scott Weiss has joined Jumio?s board of directors. Jumio?s earlier investors include Facebook co-founder Eduardo Saverin Peng T. Ong, partner at GSR Ventures and founder of Match.com and Vivek Ranadivé, founder of TIBCO. Founded by Daniel Mattes in 2010, Jumio has raised $32 million to date. We previously reported the most recent raise, which was disclosed in an SEC filing, but the new investors were unknown.
Mattes, who sold his latest company, Jajah, to Telefonica for $207 million, founded Jumio because he felt that existing online payments solutions both presented a security risk and caused churn, as most people didn?t want to input their credit card and payments details by hand for each transaction made on a phone or online.
Jumio?s first product Netswipe, debuted last year in Europe as a technology that allows e-commerce site owners and Internet retailers to process online and mobile payments by having customers ?swipe? their credit cards using virtually any webcam. Basically, the webcam uses Jumio?s patent-pending technology to scan and read the card so that the payments can be made.
To complete a transaction, consumers briefly hold their credit card in front of their webcam. Through secure videostreaming, the credit card details are recognized and verified: no snapshot image is taken, no data is stored on the computer used for the payment, making the technology extremely secure, explains Mattes. Credit card info is streamed to Jumio?s servers.
The benefit to Netswipe is that it minimizes the time between a customer?s decision to purchase something online and making a transaction, cuts down on the friction of entering credit card information and reducing fraud. The technology also comes with a complimentary mobile solution, which works similarly to the web platform. You simply use the phone?s camera to take a short video of the credit