Looks like the venture capital industry is making some payments industry movement.  Jambool raised $5 million for "virtual" currency (didn't that fall flat on its face with Beenz which turned out to be a fart in the wind?) and another $7 million goes to PaymentOne...

SAN JOSE, CA -- (Marketwire) -- 08/18/09 -- PaymentOne, the leader in alternative payments for digital merchants, today announced it closed a $7 million round of equity and debt financing led by AER Investments LLC.

The new funding will be used to expand and accelerate the organic growth and mobile related product development as well as set the foundation for executing on strategic acquisition targets to complement the company's suite of payment gateway services. The series B round on financing caps a period of strong momentum for the company. Over the past six months the client base has grown by more than 35% and the company has expanded net profit fivefold.

PaymentOne clients have generated over $3 billion dollars of incremental revenue in the last 36 months by using the company's compelling "no credit card required" alternatives. The company's flagship PhoneBill(TM) service allows merchants to have their consumers easily and safely charge fees to landline, broadband and/or mobile phone bills. "The response to our payment services is extraordinary in this market," said Joe Lynam, CEO, PaymentOne. "Growth continues to be fueled by the expanding market of premium digital services, smart mobile devices and the consumers fear and inconvenience of using a credit card for such small ticket items. Factor in the credit card crisis and digital merchants view providing consumers with card alternatives as a must-have versus a nice to have."

AER Investment maintains a portfolio of strong relationships with numerous online and mobile-based merchants, and sees PaymentOne as unique stand alone investment opportunity as well as a strategic fit with their merchant portfolio.

"We're delighted with PaymentOne's success serving some of the world's top brands in a rapidly expanding market," said Warren Rustin, Managing Director, AER. "And, we're very enthusiastic about the growth prospects and the combined merchant value proposition as we integrate our marketing products and expertise with our portfolio partners."

About PaymentOne
PaymentOne Corporation is one of the world's fastest growingonline Payment Services Providers (PSPs). Founded in July 2000,PaymentOne has pioneered payment and marketing services that connectdigital merchants and network operators and accelerate the adoption ofonline content and services by over 25%. Based in Silicon Valley,PaymentOne has generated over $3 billion in new digital revenue overthe last 36 months for its clients and partners. The company manages anetwork of over 1000 telecommunication/broadband providers, mobileoperators and content partners including leading ISPs, BSPs, Telcos,broadband operators and media companies such as America Online, Sulake(Habbo), Blizzard Entertainment and Time Inc. The company's flagshipPhoneBill service provides merchants with access to over 220 millionconsumers with mobile, broadband and landline accounts.

To learn more about PaymentOne, visit www.PaymentOne.com : or call 800-747-4028.

About AER Investments
AER is a special purpose LLC established to provide growth capitalto a select group of strategically aligned private companies. AER'scurrent portfolio investments include both early and late stagecompanies. The company focuses exclusively on online media, mobileservices and marketing enterprises closely aligned with its core visionof enabling large-scale consumer adoption of digital media. AER isheadquartered in Boca Raton, Florida. For more information about AERcontact the company at 561-750-5131.

Contact:Brad Singer
PaymentOne
Email Contact :
408-362-4100

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