Global mobile payment provider Bango has secured more than $10 million to grow its platform in emerging markets.
Bango, which powers payment and analytics on the mobile web for some of the world’s largest technology companies - such as Facebook, Amazon, BlackBerry World and EA Mobile, has raised $10.2 million (£6.5 million) through a placing of 3,250,000 new ordinary shares on the London Stock Exchange, at £2 per share.
Increasing Mobile Payments
Bango, which has offices in the US and UK, helps facilitate carrier billing payments which deduct purchases from a customer’s mobile tariff. This makes the process simpler for the customer as avoids the use of credit cards and often results in an increase in mobile purchases.
The company intends to use the net proceeds of the placing to finance business development with a view to gaining more mobile network operator partners.
It also has big plans to take advantage of the emerging markets in Brazil, Latin America, India and other parts of Asia.
CEO of Bango, Ray Anderson, said: “This fundraise provides us with the resources to move forward in developing those opportunities and we are confident that the massively smooth user experiences, enabled by our unique technology platform, extensive mobile network operator relationships and industry leading customers, provide us with a clear competitive edge in the fast growing mobile payments industry."
Demise of the Credit Card
Last year Bango invested £1 million in a major hardware and software platform refresh in its primary data centre, enabling it to process higher volumes of payment and analytics transactions. The cash injection also allowed it to boost staff in its executive and operational team.
Bosses at Bango say they are now witnessing increasing interest from key customers in up-and-coming markets, which could benefit most from operator billing, as credit card use is less prevalent in these markets.
In particular, Bango sees opportunities in Brazil through its new relationship with Telefónica, as well as with other mobile network operators elsewhere in Latin America.