We’ve all been pretty excited here at TrialPay and now we get to tell you why: today we announced a $40 million round of funding from Greylock Partners, Visa Inc., DAG Ventures, DFJ Growth, QuestMark and T. Rowe Price in addition to other well-known investors. This latest round comes in connection with TrialPay’s explosive growth in 2011 and allows us to continue to develop our platform and innovate in the digital payments space.
As the digital goods market flourishes, payment providers are quickly learning that interchange fees make it impossible to process microtransactions for digital goods. New revenue models are emerging to tackle this failure and this latest investment is a big step towards solving that problem. As Facebook’s monetization partner, TrialPay uses advertising to fund microtransactions free of interchange for billion dollar companies, including Zynga, Facebook and EA. While less than 5% of Zynga’s 232 million monthly active users actually pay, this problem is not unique to social gaming. Our CEO, Alex Rampell, recently spoke on this topic at Web 2.0 Summit, which you can watch here.
The team at TrialPay is looking forward to another great year, and we hope you will follow the evolution of our company as we continue to innovate and solve new problems in digital payments.