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3V Transaction Raises $25.5M From Atlas

3V Transaction Services Ltd. has raised EUR20 million ($25.5 million) in a first round of venture capital financing to expand its pay-as-you-go debit card service for online shopping. Atlas Ventures led the Series A round and was joined by Benchmark Capital Europe. The service, which launched a year ago in Ireland, enables consumers to buy a pre-paid debit card number from select merchants in the same manner they would buy pre-paid telephone service.

A debit card number is delivered to the consumer on a receipt, and functions the same as traditional credit card and debit card numbers. Other security details, such as the expiration date and security code, are delivered via text message. 3V's debit numbers can then be used for online transactions anywhere Visa cards are accepted. 3V generates revenue by charging a fee each time a consumer buys a pre-paid debit number. The service is aimed at consumers who may choose not to have a credit card, and who may be fearful of fraud when shopping online. "They might not want to leave that financial footprint behind them," said Chief Executive Kieron Guilfoyle. "We found the market, we believe it to be a very sizable market...and now we've given them an instrument that allows them to shop online."

3V Transaction was formed in 2004 in Dublin as a joint venture between Benchmark-backed consumer payments company Alphyra Group Ltd., e-commerce software provider Orbiscom Ltd. and fraud prevention software startup Snapcount.com. The company has added about 60,000 users since it launched its service in Ireland last fall. With the new funding, 3V Transaction plans to expand its service into the U.K. and across Europe. To help expand its reach, 3V Transaction will utilize Alphyras' cash acceptance network called payzone, which is spread across Europe with 150,000 terminals in 19 countries. 3V Transaction has about 15 employees and plans to expand its staff to as many as 75 over the next year and a half. Representatives from Atlas and Benchmark were not immediately available to comment on the round.