Berlin-based Barzahlen, a startup that offers customers the option of paying online purchases offline, announced a “multiple million” funding round. No further details about the funding amount are available.
While the FinTech industry mostly concentrates on mobile payment, NFC and peer to peer payment, one startup is going into a different direction: barzahlen (German for ‘paying cash’) lets its customers pay their online bills offline.
What seems quite unusual makes sense when looking into how Germans pay: About 82% of all transactions are done in cash in Germany. That is on the one hand because many smaller cafés or shops don’t accept debit or credit cards but also because many Germans feel they keep a better overview on their spendings when paying in cash.
Talking to VentureVillage, Susanne Krehl from barzahlen explained that the startup has two main user groups. One is people under 25 who do not own a credit card or have a low income. The other is people over 50 that did not grow up with the internet and feel insecure about entering their banking details online.
Customers print a barcode and pay in one of the over 3,400 retail partners in Germany, including e.g. Deutsche Telekom shops or drug stores such as dm or Budni.
barzahlen is used to pay electricity bills or e.g. transportation tickets. Good Games, to mention one of several gaming companies, also offers customers to pay in-game purchases with barzahlen.
The funding came from Berlin Technologie Holding as well as the former investor ALSTIN Alternative Strategic Investment GmbH. It will be used to continue working on the product. Expanding to other countries is not planned as of right now, VentureVillage was told.