PORTLAND — Digital gift card company CashStar continues to expand.

The Portland-based firm, which creates and manages systems that process electronic gift cards, announced today that it has secured $12 million in financing from FTV Capital, a company in New York and San Francisco that invests in high-growth companies with proven business models, according to a press release.

Other investors included Coupons.com CEO Steven Boal and San Francisco-based Passport Capital.

CashStar, which has about 50 staffers, will use the funds to expand its 200-strong network of retail customers, which include firms such as Mandarin Oriental Hotel Group, The Home Depot, Williams-Sonoma, CVS/pharmacy, the GAP, Regal Entertainment Group, Papa John’s pizza and others. 

 

CashStar develops the web platforms that process sales of those companies’ digital gift cards.

“CashStar’s proven management team and proprietary technology platform have enabled CashStar to become the leader in this high-growth market,” said FTV Capital partner Chris Winship, who is also a CashStar board member, in a statement. “The company’s turnkey solution, including unique features and functionality, rigorous risk management, and a demonstrated commitment to outstanding customer service, ensure that retailers, employers and consumers have a convenient, reliable and safe experience.”

CashStar CEO David Douglas Stone told The Portland Press Herald in May that electronic gift card sales are roughly $1 billion to $1.5 billion annually, a fraction of the $91 billion gift card industry, which is still dominated by plastic cards.

Stone said industrywide electronic gift card sales are increasing 300 to 400 percent yearly, cutting into sales of plastic cards.

“The industry is off to the races,” he said.