Follow the money. That’s the advice Deep Throat gave to an intrepid Washington Post reporter trying to untangle the Watergate break-in. It rings true for payments companies as well. Comvest, co-chaired by Checkfree founder Pete Kight, has agreed to turn over $12 million to Cartera Commerce based primarily on their ability to deliver local deals. Working with an investor community that knows how to grow payment companies should be a strong sign to the market that Cartera is ready to make an aggressive move in the local deal market.
Cartera now has 60 people of its 200-plus person staff dedicated to sales and services for local merchants, Beecher says. The rise (and perhaps fall) in group-buying startups has pushed many local deals and loyalty programs players (like Providence, RI-based Swipely) to emerge, but Beecher says his company sees “more and more the benefit of having gotten there first.”
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