MFoundry gets $18M from Intel, MasterCard, Motorola

Mobile payments player targeting financial institutions lands funding

While the mobile phone has turned into an all-in-one entertainment device, it's not exactly used ubiquitiously for mobile payments. That may change as more money gets funneled into technologies that can make that happen.

Just a few days after MasterCard announced a strategic investment in mFoundry and a way for its customers to use their mobile phone to make payments, mFoundry announced Monday that it's received $18 million in new capital in a round led by MasterCard, along with giants Intel Capital, FIS, and Motorola Mobility. In total, the company has raised $50 million. MasterCard and Intel are new investors.

"Intel and Motorola add similar types of value," said Drew Sievers, CEO and founder, of mFoundry, in an interview with me. "Motorola is one of the leading hardware providers on the Android platform, an important platform for mobile payments. We see many ways to work with them. Intel also delivers a variety of mobile technology solutions to large companies, including financial institutions and mobile carriers. We believe that their presence in the mobile carrier sector is particularly valuable."

Larkspur Caiif-based MFoundry, which was founded in 2004 and is a leading software-as-a-service (Sass) mobile platform used by 600 banks and credit unions around the country, allows banks to offer their customers the ability to transfer funds, pay their bills, find ATM's and check balances from their mobile devices. MFoundry is also the service behind Starbucks Mobile, which is live in 6800 stores. With this Starbucks service, you can check your balance, reload your card, and view transactions and pay using your iPhone or iPod Touch. 

The new cash will be used to develop new payment methods for financial organizations and mobile network operators. For instance, one of the new products in the pipeline is a way for customers to use their phones to make payments. This is expected to be released in mid-2012, said Sievers. 

The investment is also a reflection of the increased demand for mobile solutions. While ATM's took over 15 years and online banking over 20 years to hit 50% penetration, forecasts are showing mobile banking hitting that halfway mark in a little over six years, according to the mFoundry.

Indeed, the number of Americans using their phones to access personal banking information rose 21% from the end of last year to Q2 2011, according to comScore. About 33 million Americans, or 14% of all US mobile users, use their mobile phones for banking.

The company was not immediately available for comment.

(Image source: cfcedge.com)