OneText Innovates Online Shopping with ‘Text-to-Buy’ Payments

Boston, MA – OneText, a startup founded by former PayPal employees, has launched what it calls a “text-to-buy network” that allows shoppers to complete purchases via text message. The company recently secured $4.5 million in seed funding from notable investors including Khosla Ventures, Coatue, and Citi Ventures.

The idea for OneText emerged when co-founder and CEO, who previously worked on PayPal’s checkout team, noticed many e-commerce businesses struggling to adjust their existing payment systems. ‘That’s a hard pitch,’ Fudem explained, referring to the challenge merchants face when asked to change their checkout methods. Most merchants are locked into specific e-commerce platforms that dictate these systems.

By utilizing SMS for transactions, OneText eliminates the need for merchants to replace their existing checkout processes. Fudem asserts that brands must maintain direct relationships with their customers, despite the e-commerce features offered by large social media platforms such as Instagram and WhatsApp. OneText aims to differentiate itself from mass SMS marketing by providing a personalized communication experience that leverages AI for improved customer interaction.

Under the hood, OneText operates its own wallet that integrates with existing payment processors to facilitate transactions. Once a shopper makes their first purchase, their payment details are securely stored, allowing for hassle-free reorders with a simple text response. This process is designed to be consumer-friendly; OneText utilizes ‘consentful’ automation, where customers receive notifications prior to any recurring charges.

Fudem envisions expanding the network to enable customers to use their payment profiles across different brands. ‘Building a consumer-facing wallet that’s 10x better is really hard,’ Fudem stated. ‘But we can create a business-to-consumer texting platform that brings the ‘charge it to your room’ experience to customers’ phones.’

Since its inception, OneText has attracted midsized e-commerce brands with annual revenues ranging from $10 million to $100 million, while also supporting smaller startups and larger enterprises, Fudem noted. ‘We’ve been scaling 3x year over year and doing millions in revenue,’ he added.