PAGO46, the first on-demand cash collection network, announced a new round in seed funding. The round was led by Scale Capital and later joined by Plug and Play Ventures.
Having grown its customer base with companies like Netflix, Movistar, and Rappi, PAGO46 is revolutionizing payments in emerging countries by making it more convenient and beneficial. PAGO46 will use the capital to expand their operations into other markets.
PAGO46 addresses a deeply rooted pain point present in Latin America, which is a lack of credit and debit card usage. In the Latin American region, more than 50% of the people are unbanked and prefer to pay with cash. In fact, according to Martin Mazza, the company COO, 85% of transactions in Chile are completed using only cash. This lack of credit card usage makes completing payments online essentially impossible.
PAGO46’s three-sided marketplace provides the following benefits. For consumers, a convenient way to pay with cash anytime, anywhere. For merchants, it helps open up an underserved market by allowing them to offer cash as a payment method. Lastly, it allows its gig economy participants to make money on-demand, using nothing more than their smartphone.
Currently, PAGO46 is operating in Chile with the largest and most advanced cash collection network. PAGO46 sets itself apart from competitors by providing on-demand cash collection networks as well as traditional fixed cash collection points. Recently, PAGO46 has launched in Argentina and with this investment, expects to expand to other countries in the region.
“PAGO46 wants to revolutionize how people pay with cash online by making it more convenient and beneficial. With Latin America’s first on-demand cash collection network, we offer convenience to consumers and benefits to our merchants and user-partners. Thanks in part to Plug and Play Ventures’ investment, PAGO46 has added marquee merchants to its customer base and expanded operations to Argentina. We plan to continue our expansion plans by launching more countries in the Latin American region in the coming quarters and continue growing our service offerings by leveraging innovative technology.”
says Garland Wong CEO and Cofounder of PAGO46.
“We are happy to see the significant evolution and growth of PAGO46 since our first investment in 2016. This round and the addition of new investors such as Plug & Play and Vulcano demonstrates the excellent prospects of PAGO46 as the company drives its international expansion”
says Oliver Alexander Flögel, Managing Partner at Scale Capital.
“At Plug and Play we are excited about the impact PAGO46 can have on markets like Chile, Argentina, Peru and other countries that do not completely rely on plastic to complete transactions. The same way Uber forever transformed transportation, PAGO46 is revolutionizing the way payments are made online. What we love about this company is not only the amazing team behind it but also the vision of leveraging the gig economy”
says Eugenio Gonzalez, Senior Associate at Plug and Play Ventures.
About PAGO46: PAGO46 is the first on-demand cash collection network that allows consumers and businesses to pay with cash for products and services. Their three-sided marketplace connects consumers, agents, and merchants together in a patent-pending real-time platform that facilitates paying with cash. They also collect merchant payment fees from merchants like Paypal and share revenue with the agents like Uber. https://www.pago46.com
About Scale Capital: Scale Capital is a stage agnostic, operational intensive private investment and management firm focused on the converged telecom, media, and technology sector. https://scale.capital
About Plug and Play Ventures: Plug and Play is a global innovation platform. Headquartered in Silicon Valley, we have expanded worldwide to include a presence in over 20 locations globally giving startups the necessary resources to succeed in Silicon Valley and beyond. With over 6,000 startups and 300 corporate partners, we have created the ultimate startup ecosystem including accelerator programs, corporate innovation services, and an in-house VC arm. Since inception in 2006, companies in our ecosystem have raised over $7 billion in funding, with successful portfolio exits including Danger, Dropbox, Lending Club, PayPal, and many others. For more information, visit https://www.plugandplaytechcenter.com