Palo Alto’s Payvment was briefly one of those buzzy Silicon Valley startups, with more than $7 million in venture funding from BlueRun Ventures and 500 Startups. Now the Facebook e-tailer has folded its tents, effective the end of February.
An Intuit spokeswoman confirms reports that the financial software giant has bought the team behind Payvment, but not its product. Small businesses that use Payvment to sell on Facebook will see their virtual storefronts migrated to another startup, Russia’s Ecwid. Terms not disclosed for any of this.
Here’s the sparser-than-sparse comment from Intuit, which of course made a big splash by buying money management startup Mint a few years back: “Intuit has acquired a team of highly skilled developers who will be of great value to the social teams at Intuit.” Whew, you can feel the energy!
As of last summer, Payvment claimed it had signed up more than 170,000 clients and was adding 1,500 stores on Facebook each week. Then-COO Jim Stoneham (who later became Payvment’s CEO) bragged that the company was an eBay in the making. But while Stoneham’s company was one of the heavyweights of F-commerce, it’s a market that’s still in its infancy, and some pundits I talk to still are skeptical about how big it can be.