SparkLabs and Global Ventures have invested $3.4 million in Pay By Group, which makes a white-label e-commerce tool that allows a group of people to split the cost of a purchase at the point of sale.
Pay By Group, which is based in San Francisco and Guadalajara, Mexico, was incubated at 500 Startups and CommerceInnovated, the Mastercard and Silicon Valley Bank-operated accelerator.
The company tries to differentiate itself from other bill-splitting apps in the crowded social payments space(including PayPal's Venmo) by splitting the actual payment rather than the bill.
Instead of one person paying the bill and collecting funds from the others in a social group, Pay By Group powers a multi-payee system in which each person in the group pays his or her share online, and is only charged if the others in the group commit.
Pay By Group's service is aimed primarily at people with lower account balances, and is available in 70 countries.
"We've been really impressed by how well the Pay By Group value prop resonates around the world. The access they provide consumers with low credit limits or low bank balances to new products is particularly exciting, and their ability to execute in multiple languages, currencies and culture environments impresses us," said Frank Meehan, a partner at SparkLabs, in an Oct. 18 release.