Payfone Inc said it was able to raise USD 10 million from Early Warning Services. The deal was part of a commercial agreement between both firms. American Express Co, Opus Capital, RRE Ventures and Relay Ventures were Payfone's other investors. Payfone provides mobile phone security solutions while Early Warning Services gives tools to detect fraud to companies in the financial industry.

In an interview conducted by Bloomberg, Payfone Chief Executive Officer Rodger Desai said the latest proceeds would bring the company's total funding to USD 40 million. Desai said the need to secure information and prevent fraud was growing across the financial sector. Consumers had begun to conduct their financial activities on smartphones and tablets instead of doing so on personal computers. He said the service the services they offer would protect users as well as financial institutions.

Desai added, "It'll limit the friction consumers face when dealing with banks. We are at the very beginning of the opportunity for mobile authentication."