Text-to-Buy is HERE! Startup Lands $4.5M to Reinvent Shopping!
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Forget clunky online checkouts! OneText, a startup founded by ex-PayPal employees, is shaking up e-commerce with its innovative "text-to-buy" network. They just secured $4.5 million in seed funding from big names like Y Combinator, Khosla Ventures, Coatue, Citi Ventures, Good Friends, and even Matt Bellamy from Muse!
Why Text-to-Buy?
The traditional online checkout process can be a real pain. OneText aims to simplify things by letting shoppers complete purchases entirely through text messages. Co-founder and CEO Jonathan Fudem, while at PayPal, noticed the difficulty merchants face when trying to switch out their existing payment systems. E-commerce platforms often dictate these systems, leaving merchants with little choice.
SMS: The Solution?
OneText bypasses this issue by using SMS. Merchants don't need to replace their website's checkout. While platforms like Instagram and WhatsApp offer e-commerce features, OneText believes brands need direct, ownable relationships with their customers. This approach offers a more personal and streamlined experience.
More Than Just Spam
OneText differentiates itself from typical SMS marketing companies known for impersonal, spammy messages. They use a combination of AI-powered two-way conversations and human oversight to boost conversion rates by 20% to 30%. Features like cart recovery, post-purchase upsells, and personalized recommendations contribute to this performance.
Consentful Automation
OneText also focuses on "consentful" automation. For example, before charging a customer for a reorder, they send a text message informing them that the payment will be processed in 24 hours unless they cancel. This opt-out system ensures transparency and control for the customer.
OneText runs its own wallet, integrating with a brand’s existing processor to complete transactions. Customers' payment information is securely stored after the initial purchase, allowing for single-reply reordering. This system is similar to charging items to a room during a hotel stay, making text commerce seamless and convenient.
Will text-to-buy become the future of e-commerce? With OneText leading the charge, it's certainly a possibility!