Mobile payments company Paydiant has raised USD12 million in Series B funding led by Stage 1 Ventures, with participation from existing investors North Bridge Venture Partners and General Catalyst Partners. The latest investment follows a USD7.6 million Series A round last year and brings the company's total funding to USD19.6 million. Under the deal, Stage 1 Ventures MD David Baum will join Paydiant's board.

Paydiant offers a platform that banks and merchants can brand as their own mobile payments services and add into their existing apps. The company plans to use the new financing to develop its white label business relationships and is currently trialling its services with five of the top 15 US banks.