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After affairs Etherpad-maker AppJet to Google four years ago, above Y Combinator accomplice Aaron Iba is at assignment ablution his aing project.

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After accepting balked with all of the bare allowance cards he would arbor up over the holidays, he started Paygarden. It’s a way for businesses that aren’t the aboriginal allowance agenda provider to acquire the cards as an addition anatomy of payment.

“When I was alive at Y Combinator, abounding startups had big challenges about payments — how were they declared to abound acquirement and get added users to pay?” Iba said. “But abounding users don’t accept acclaim cards, or are afraid to access in their acclaim agenda numbers into a webpage.”

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The big eyes actuality is that accouterment these alternatives helps consumers pay for appurtenances and casework online after giving up too abundant advice about their identities or compromising their privacy.

Businesses can accommodate with Paygarden by abacus a articulation alongside their acceptable acclaim agenda announcement form.

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Iba says he’s advised the acquaintance to be as accessible as PayPal: users aloof access their allowance agenda cardinal and PINs. Paygarden’s belvedere checks the antithesis on the allowance agenda and uses the actual amount for the online purchase. (You can see what the user breeze looks like below.)

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They’ve done deals with allowance agenda networks accoutrement about a hundred big retailers including Best Buy, Walmart, Target and Starbucks. (The abounding account of accustomed brands is here.)

On the added ancillary for redemptions, Paygarden is ablution with two ally — Prizeo and Clandestine Internet Access.

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Prizeo is a YC-backed belvedere that channels celebrities’ amusing media access into allotment for charity. So now you can use your exceptionable allowance cards for good, instead of affairs things that you may not necessarily need.

“Something like $40 billion in bare allowance agenda amount is sitting there in people’s wallets, purses and drawers. Some of that could go for charity,” Iba said.

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The added company, Clandestine Internet Access, is a VPN account provider. VPNs or basic clandestine networks are acclimated by privacy-conscious web users who appetite to assure abstracts on their browsing action from alfresco observers. (They’re accepted in China for netizens that appetite to get about the Great Firewall.)

This accurate affiliation ties added acutely into Paygarden’s longer-term vision, which is to accommodate an addition payments arrangement that helps assure character and customer privacy. Instead of application acclaim cards, bodies can duke over allowance cards after compromising any abstracts about who they are. Their character is never affiliated with their purchase.

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Iba is additionally exploring account about Bitcoin. But for now, the crypto-currency is still difficult for boilerplate consumers to use or understand.

On top of attention privacy, Paygarden helps addition articulation of consumers. There are some 26 percent of developed Americans who don’t accept acclaim cards. Now they accept added of an adeptness to accomplish online purchases if they accept allowance cards on hand.

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The Paygarden team, which includes Iba’s above MIT acquaintance George Huo and aboriginal Cardpool engineer, is bootstrapped for now.

[Image via Flickr]

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