PALO ALTO, Calif.-M-commerce software developer Obopay said it has snared $10 million in Series A venture funding.
Obopay, which was founded last year, plans to offer a mobile payment service in coming months that would allow users to make purchases and manage funds from a mobile phone. Redpoint Ventures, Onset Ventures and Richmond Management participated in the round.
The news marks a rare public announcement from the secretive startup-even the company’s Web site is password-protected.
“Obopay is working with carriers, merchants and financial institutions to bring to market the first comprehensive m-wallet service offered directly to U.S. consumers,” said Allen Beasley, a partner at Redpoint Ventures. “Using Obopay, consumers will have access to the fastest way to get, send and spend funds anywhere they choose right from the mobile phones.”
Obopay joins a growing field of players looking to provide a payment service for wireless users, including Textpayme Inc., Way Systems Inc. and Mobilelime, a Vayusa Inc. subsidiary. PayPal, an eBay Inc. subsidiary, is also aggressively working to build a mobile payment platform.
Whether wireless can create a new link in the payment value chain is unclear, however. Installing new wireless equipment at the point of sale can be expensive for retailers, and consumer demand to manage accounts wirelessly has yet to be proven.
