Global payment services provider BlueSnap has raised $50 million in a round of growth financing as the battle over who will rule the register both in stores and online heats up.
The growth of online shopping alongside the complete transformation of the architecture for payments thanks to new government regulations and the adoption of contactless payment technologies, has brought about a generational shift in the way that money changes hands. A 2013 report from FTI Consulting indicated that online retail sales will reach $508 billion by 2020, accounting for nearly 14% of all retail sales. The new types of shopping, and new technologies for buying, are driving the adoption of new types of processing technologies, which is one of the reasons for BlueSnap’s big round, and its impressive growth.
Investors behind BlueSnap include the private equity firms Great Hill Partners, Parthenon Capital Partners, which led the most recent financing, and BlueSnap chief executive, Ralph Dangelmaier. The company will use the money to continue its global expansion and look for strategic acquisitions.
The company, which announced its news at the Money20/20 conference in Las Vegas, already operates in 180 countries that speak 29 different languages and process payments across 110 different types of platforms in 60 different currencies. Competitors include payment processing companies like Adyen, Braintree , and the upstart Credorax, which just raised a $40 million round of financing less than a month ago.
The Waltham, Mass.-based BlueSnap has over 110 employees in offices in Chicago, London, Silicon Valley, and Israel in addition to its headquarters outside of Boston. Recent customer acquisitions include PreSonus, Magisto, Symantec, and DudaMobile.
“When there are over 7 billion mobile devices worldwide yet 73% of U.S. merchants don’t sell globally, we feel there is a huge missed opportunity. We’re determined to help merchants sell beyond their borders,” said Ralph Dangelmaier, BlueSnap’s chief executive in a statement.
According to a statement previous investor Great Hill Partners’ managing partner Matthew Vettel, and partner Chris Busby will continue to serve on the board of directors along with Dangelmaier. Zach Sadek, Principal at Parthenon Capital Partners, will be a Board Advisor.
“This is the time for BlueSnap to expand aggressively. Merchants around the world need the technology they offer,” said Great Hill’s Matthew Vettel, in a statement.
Photo via Flickr user Michael Coghlan