Dynamics Inc., a Cheswick, Pennsylvania-based provider of interactive payment cards and systems, closed a $70m Series C round of financing.
Backers included new investors MasterCard (NYSE: MA) and Canadian Imperial Bank of Commerce (CIBC) and existing shareholders Bain Capital Ventures and Adams Capital Management.
The company intends to use the funds to continue to scale manufacturing operations and extend its technical capabilities and product lines.
Founded in 2007 by Jeff Mullen, Chief Executive Officer, Dynamics designs and manufactures intelligent battery-powered payment devices and advanced payment platforms.
The company has currently launched products with banks in the United States and Canada.
The financial backing from MasterCard is one part of a larger expanded business alliance between the two companies that will seek to provide consumers with added security when using payment cards at the point of sale (read the press release below).
FinSMEs
08/12/2014
The Press Release
MasterCard and Dynamics Inc. Partner to Drive Innovation within Interactive Payment Card Market
Companies collaborate to develop expanded suite of secure and feature-rich payment card solutions
December 08, 2014 09:03 AM Eastern Standard Time
PURCHASE, N.Y. & PITTSBURGH–(BUSINESS WIRE)–In conjunction with the Series C funding announcement issued earlier today, MasterCard and Dynamics Inc. also announced today a joint commercial initiative to drive innovation in the interactive payment card market. The collaboration enables MasterCard to offer exclusive Dynamics products to its issuers globally, providing consumers with added choice, flexibility and security at the point of sale.
“At MasterCard, we are focused on driving innovation across the entire payments industry, and continue to invest in the technologies, solutions and companies that will help our customers and partners expand their business and serve their cardholders in new ways”
Dynamics technology and manufacturing capabilities produce payment cards that enable issuers to meaningfully differentiate their card products and to provide extraordinary payment functionality to their cardholders. Dynamics next-generation interactive payment cards are built with features such as buttons, displays and LEDs. These technologies provide consumers greater card functionality including the ability to select applications that are stored directly on the card itself, all with the assurance that every card is completely compatible with existing POS terminals. Dynamics also pairs their card technology with interactive mobile applications to help move the consumer that much farther into the digital world.
The technologies have many practical applications and will allow issuers to offer multiple consumer features and functions in one card. This includes cards that offer consumers multiple selectable currencies, access to both debit and credit accounts, and cards with a co-brand that offer credit or debit in conjunction with a separate loyalty application.
As safety and security in everyday payments is at the heart of MasterCard’s business, its expertise in these areas will also enable the companies to develop new security-oriented products on a global scale while continuing to allow consumers the choice of how they pay. Working together, MasterCard and Dynamics will deliver to issuers innovative payment cards for a global consumer base that continues to move away from cash and seeks personal technologies that deliver convenience and security for their daily lives.
“Interactive payment cards give cardholders an unprecedented level of customization, control, and security at each and every purchase at any point-of-sale device in the world,” said Jeff Mullen, Chief Executive Officer, Dynamics. “With interactive payment cards, banks can expand card offerings by providing cardholders with several additional on-card payment options that cardholders can select at each purchase. By giving consumers easy access to additional options, banks can enable several business models on a single card while building brand and an enhanced cardholder relationship with each purchase.”
“At MasterCard, we are focused on driving innovation across the entire payments industry, and continue to invest in the technologies, solutions and companies that will help our customers and partners expand their business and serve their cardholders in new ways,” said Carlos Menendez, Group Executive, Global Credit and Debit Products at MasterCard. “In working with Dynamics, we have secured a partner with deep technology capabilities and market-leading manufacturing capabilities to help drive innovation in the interactive payment card market while moving in lockstep with MasterCard’s mobile and digital enablement strategy.”
About Dynamics Inc.
Dynamics Inc., founded in 2007 by Jeff Mullen, designs and manufactures intelligent battery-powered payment devices and advanced payment platforms. The company has currently launched products with banks in the United States and Canada and has won five Finovate Best of Show awards, two Cartes Sesames awards, a Best in Show award for Personal Electronics at the International Consumer Electronics Show (CES), and the $1M People’s Choice Award at DEMO. Dynamics investors include MasterCard, CIBC, Adams Capital Management and Bain Capital Ventures. For more information, visit www.dynamicsinc.com.
About MasterCard
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Pioneers Blog and subscribe for the latest news on the Engagement Bureau.