Simplification of payments is not a new concept.
Many companies are attempting to combine simplification and payment in creative ways. And today, such a company, Play2Pay, has raised $13 million in a Series A round of funding.
The Fort Lauderdale, Florida-based startup has a straightforward mission. It wants to give consumers a way to lower their bills – it claims an average of 30%! – By playing games, watching videos and completing daily challenges, offers and surveys.
Play2Pay was bootstrapped for the first five years of its life, raising its first outside capital in June of 2020 — a $7.5 million seed round from individual angel investors. Telesoft Partners led its Series A round, which included Harbor Spring Capital and former AT&T Vice Chairman Ralph de la Vega, former Reuters CEO Tom Glosser, Madison Dearborn Partners co-founder and senior advisor Jim Perry, and Virtusa founder and The former included participation from individual investors. CEO, Chris Canekaratne.
The alternative payments platform says it “exchanges value” between brokers and consumers, converting attention and engagement into a currency that can be redeemed for bill payments. Meanwhile, brands find a new way to promote their products and services.
Brian Boroff, founder and CEO of Play2Pay, started the company in 2015 based on the vision that prepaid mobile phone users should have an alternative way to pay for their mobile phone service and that wireless carriers should be able to use an ad-funded commercial. model will be adopted.
Today, the company claims to be the world’s first “ad-supported payment rail”, integrated directly into the payment platforms of major service providers and financial institutions. It also claims to be the only company that converts user engagement directly into bill payments.
The “opt-in” offering currently serves over 100 million mobile customers through partnerships with telecommunications companies such as AT&T Mexico, Cricket in the US, TIM in Brazil, Indosat in the United States, United Kingdom, Mexico, Brazil and Indonesia. available for. Ooredoo in Indonesia and Lycamobile based in the UK.
The rewarding approach seems to resonate with users. from According to Boroff, a telecom giant, from June 2020 to June 2021, the startup saw a nearly 300% increase in its ARR (Annual Recurring Revenue).
He said that about 25% of the users engaged on the platform generate revenue daily. and According to Boroff, service providers realized revenue expansion of up to 17% as a result of customer engagement on the Play2Pay platform.
“Our delivery model is B2B2C, directly integrating our bill payment capability with Tier-1 service providers across the globe. We are growing our customers on their customer base through the promotion of the service,” he told ClearTips.
End users, he said, can share their targeting preferences in exchange for value, providing mobile app developers and brands with greater insight when promoting their products and services to Play2Pay’s audience.
The platform is free to service providers and merchants, which means payments have no cost or fees from interchanges, acquirers, chargebacks or gateways.
Instead, Play2Pay generates revenue from mobile app developers and brands. Those developers and brands pay to reach Play2Pay’s mobile audience to promote their products and services. For example, a mobile gaming company may pay Play2Pay $100 for each user who downloads their app from the Play2Pay app and plays the game for a period of time (such as two hours). Through its technology and partner network, Play2Pay has attribution tracking to ensure that both the end user and the mobile gaming company know how much progress has been made in meeting that goal. Other formats include watching videos in some regions, completing surveys, and more traditional native advertising.
All this revenue is collected by Play2Pay, the majority of which is passed on to the end user in the form of in-app currency. The balance to Play2Pay goes to service providers such as its wireless carrier partners to promote the Play2Pay platform and to run the service and process payments. Play2Pay collects all the cash and pays to different parties accordingly.
The company will use the new capital for product development, hiring and partner engagement.