RealTime IT News

PaymentNet Secures Second-Round Funding

PaymentNet, a provider of outsourced e- commerce transaction processing, has secured new funding from investors including Wells Fargo, AT&T Ventures, Convergence Partners, Bay View Investors Ltd. and GC&H Investments.

The funds will be used for general working capital purposes, including investments in research and development and in marketing programs, the company said. Financial specifics were not disclosed.

"This funding will help us solidify our position as the service leader in e- commerce transaction processing for businesses ranging from the small Web merchant to the enterprise," said Bruce Hendrix, PaymentNet's president and CEO. "We are working with partners to deploy our service to multiple market segments, spanning: consumer-to-business, business-to-business e-commerce, electronic bill payment, and other emerging applications."

"We are investing in PaymentNet because Internet transaction processing will clearly be a core competency for financial institutions as the business infrastructure surrounding e-commerce matures," added Matthew C. Graves, senior vice president, payment strategies for Wells Fargo.

PaymentNet provides secure, Internet-based credit card, debit card, and electronic check processing services, leveraging the Internet as a virtual private network between PaymentNet's proprietary transaction processing server and individual clients dispersed on Internet and intranet locations.

Separately, the company said that Martin A. Stein, former vice chairman of BankAmerica Corp., has joined the PaymentNet board of directors. Stein retired from BankAmerica in 1998 after eight years of service and is now president and CEO of Sonoma Mountain Ventures, a San Francisco-based consulting and venture capital company.