Mobile Payments Platform PayByCar Raises $4M

Boston-based mobile payments platform PayByCar announced this week it had completed a $4 million seed funding round.

“Following a string of successes since our 2020 pre-seed round funding, today’s announcement is the beginning of our next chapter in financing the expansion of our services across states, and industry verticals like parking, retail, and other sectors,” PayByCar President and Co-founder Anand Raman said in a Tuesday (April 26) news release.

Read more: Gas Payment Solution PayByCar Launches In Massachusetts

PayByCar allows derivers who have toll transponders such E-ZPass or PayByCar windshield stickers make contactless payments on gas purchases at participating locations from their mobile device, without needing use the pump screen, cash, credit cards or mobile apps.

Instead, PayByCar users make their payments by conforming a text message upon arriving at a participating location.

The company’s services are available at a number of Alltown gas stations in Massachusetts and three Circle K stores in North Carolina.

In addition to eliminating multiple points of touching public surfaces, the process also cuts transaction time in half.

Learn more: MassDOT and PayByCar Launch Pay-by-Text Gas Payments

Last year, PayBy Car joined forces with the Massachusetts Department of Transportation on a text-based initiative to alert members about low-touch fuel payments throughout the state through the Driven by E-ZPass program.

In addition to E-ZPass and various state transportation departments, PayByCar says it has formed partnerships with Global Partners LP, Star Systems International and others.