It was announced last week that PerkStreet Financial obtained a new round of funding from Globespan Capital Partners and Highland Capital Partners in the amount of $9M. It’s difficult to understand this kind of investment in a debit card-centric product with the Durbin Amendment hanging over the industry. But behind the scenes, PerkStreet may offer a technology solution that is better able to marry social and commerce activities – a combination that is driving a lot of private equity investments in the market.
“PerkStreet gives its customers even more than two percent back on purchases they make with select merchants each month (this month, for instance, customers get five percent back on anything they spend with Groupon, Living Social, or Zulily). PerkStreet says it is now returning about $1 million a year in cash-back rewards to customers.”