PayNearMe, an alternative payments product from the company formerly known as Kwedit, has just raised $16 million in funding led by Khosla Ventures.

New investor August Capital and current investors, True Ventures and Maveron, also participated in the round.

This brings the company’s total funding to $23.3 million, according to Tech Crunch.

Mark Britto, CEO of BOKU will also join the company’s board of directors.

PayNearMe allows people who don’t have or don’t want to use credit or debit cards to purchase products with cash at more than 6,000 7-Eleven stores in the continental U.S, Tech Crunch explains.

Consumers can use the PayNearMe option to pay for e-commerce purchases, telephone orders, loan repayments, and money transfers.

Consumers place orders with PayNearMe and print out the given receipt. They take that receipt into a 7-Eleven and they scan it and you pay in cash. Once you pay, your order with the retailer or merchant will be fulfilled.

PayNearMe is launching a paperless and mobile method of paying; with a PayNearMe branded card, Tech Crunch reports.

PayNearMe says everyone should be able to buy goods and services with cash, but it has to be quick, inexpensive and simple both for consumers and the businesses that service them.

PayNearMe consumers select an item online to purchase or a payment to make.

Once the slip is scanned or card is swiped and payment is made, the payee is immediately notified that good funds have been received. Whether it is an online or over-the-phone purchase, money transfer or any other form of remote commerce, the transaction is completed at the store register in real time.

Your customer walks away with a receipt that can also contain detailed information such as, purchase details, ticket information, or even a miniature statement containing balance and next payment date.

Ed Silverstein is a TechZone360 contributor. To read more of his articles, please visit his columnist page.

Edited by Tammy Wolf