PayPal invests in “world’s largest gift card marketplace”
Global online payments provider PayPal has taken part in a funding round for Raise, which bills itself as the “world’s largest gift card marketplace”. Raise is planning to use these funds to develop its closed-loop payments network and deepen its focus on the future of prepaid cards. It also plans to “aggressively” build a “world-class retail partnerships team”.
PayPal’s share price has appreciated by 63% so far this year
SOURCE: Yahoo Finance
Raise’s business model is simple: it operates a marketplace where people can sell unwanted digital gift cards and vouchers. These are sold at a discount (so you may pick up a store specific $100 gift card for just $85) giving purchasers a “raise” in the value of their money. Raise is making waves – its generated more than $1 billion in gross transactions to date, and is working with 400 brands to expand the digital distribution of their own prepaid cards. So it is easy to see why PayPal would have an interest.
Raise’s CEO and founder, George Bousis, said: “This successful fundraise unequivocally demonstrates that the market believes we are reaching a tipping point in mobile payments. With Raise, our retail partners recognise the value of building direct-to-consumer loyalty through prepaid mobile payments, as Raise has unlocked the ability for brands to interact directly with their customers and own the relationship for the very first time.”
Raise is mobile optimized, and the company says that people who use their mobile wallet through iOS and Android can make purchases at over 3000 marketplaces, and save an average of 12% per transaction.
Dominion holds PayPal in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.