paythru receives strong backing from investor network
A promising mobile commerce platform
in the United Kingdom known as paythru has raised over $900,000 through the R4estoration Alpha Angels investment network. paythru has won the support of investors because of its ambitious growth initiatives as well as the growing popularity of mobile commerce in general. In the United Kingdom, mobile commerce is quickly becoming a lucrative business, and one that could have promising financial prospects for the companies that invest therein.
paythru offers cloud-based mobile commerce
paythru is one of several mobile commerce platforms that is available in the UK market. The platform does something that many others do not, however, in that it offers cloud-based services to consumers. Cloud computing is a relatively new concept that revolves around the use of a large network of computer servers to offer a wide range of services to consumers and businesses. A cloud computing network can often solve some of the problems associated with data storage and security, which is why cloud-based systems are becoming so popular in the realm of mobile commerce.
Cloud computing sidesteps NFC requirements
paythru uses its cloud network to transform a mobile device into a mobile payment platform. This allows consumers with mobile devices to make payments for products using nothing but their smart phone or tablet. Moreover, these devices do not need to be equipped with NFC technology in order to participate in mobile commerce. Much of the mobile commerce sector hinges on NFC technology, which is used to facilitate mobile payments. NFC-enabled devices have been somewhat rare in the global market, thus limiting the growth of mobile commerce. paythru has found a way to solve this problem.
Funding to help firm reach more consumers throughout market
The Restoration Alpha Angels network, which is comprised of investors from Restoration Partners, has poured a significant amount of support behind paythru. Backed by this funding, the firm will be able to expand its reach in the UK market, thereby engaging more consumers and getting these people involved in mobile commerce.
E-commerce business losing traction with investors
Black Friday has passed and that has left many retailers preparing for the remainder of the holiday season. While Christmas still looms, Black Friday was the most important day for the retail industry. Now that that day has passed, retailers can enjoy some mild relief before gearing up to engage consumers again in December. Mobile commerce helped make this year’s Black Friday a major success, and the growing popularity surrounding the concept has lead to many start-up e-commerce businesses being formed. Investors have seen the potential of these start-ups and some are suggesting that they are overvalued.
Mobile commerce continues to spark new businesses
Over the past 18 months, mobile commerce has sparked the founding of several e-commerce platforms that had promised to provide innovative service to consumers and niche markets. Many of these platforms received a proverbial tidal wave of investments that helped them reach their target audience. Unfortunately, most of these platforms failed to meet the expectations of investors, thus yielding modest returns at best. The lackluster performance of some platforms has not stopped the formation of new e-commerce businesses, however. Finding investments may soon become difficult for these start-ups.
Failed e-commerce ventures create unease among investors
Though the e-commerce sector shows promising growth, investors have seen a string of failed online retail ventures from groups like Facebook, Zynga, and Groupon. Smaller companies that promised major returns were unable to deliver, thus making many investors leery of e-commerce ventures and those that revolve around mobile commerce. Former eBay executive Dana Stalder, who is now a partner at Matrix Partners, an investment firm focused on software and communications companies, suggests that there is “inflated valuations” concerning e-commerce ventures.
Capital-intensive business may find lack of support
Stalder notes that most e-commerce businesses are complex and require significant capital to operate. Inventory and shipping costs make it difficult for new businesses to reach a large audience. Even with financial backing, these businesses can easily spend more than they make, thus making them less lucrative for investors. Many of these companies have created an uneasy investment climate for the online retail industry, which could make it exceedingly difficult for new e-commerce start-ups to find the backing that they need.
