Erik Helgesen, Co-Founder of PayMore Stores, shares insights on tech innovation, PayStation’s impact, and advancing sustainability in electronics resale.
Erik, could you start by sharing a bit about your journey in founding PayMore Stores and what inspired you to venture into the resale and recycling of used electronics?
My journey with PayMore Stores began back in 2005 when we opened our first second-hand business in Long Island, NY. At that time, we were trading primarily on eBay, selling a wide range of items. It was through this experience that we discovered a growing demand for not only used electronics, but the need for a safe, fast and easy way to trade them.
This realization sparked our interest and ultimately inspired us to shift our focus toward the resale and recycling of electronics.
By 2011, we re-launched the business as PayMore, with a clear vision to build a thriving marketplace for buying, selling, trading, and recycling electronics. Seeing the untapped potential in this space, we sought out a point-of-sale system to power the business, only to realize nothing off the shelf could meet our needs. With my tech background, I set out to develop our own proprietary software, creating a safe and trusted environment for consumers looking to get cash for their electronics.
Our hard work paid off—we quickly became the highest-grossing second-hand store on Long Island. It was at that point we realized we had unlocked a business model with the potential to thrive in every market across the country. What started as a simple venture on eBay transformed into a nationwide concept that not only fulfills a market need, but also promotes sustainability through the recycling of electronics
The PayStation is a remarkable innovation in retail technology. What was the driving force behind its development, and how do you see it reshaping the customer experience?
The driving force behind the development of PayStation was our commitment to redefining the customer experience in the electronics resale industry while addressing key challenges such as cash handling and theft mitigation. For years, we’ve focused on providing a safe and convenient environment for customers to buy and sell their electronics. PayStation takes this vision to the next level by removing the complexities and risks associated with traditional cash transactions.
PayStation is not just an ATM; it’s a revolutionary, tech-first approach designed to enhance every aspect of the customer journey. With its intuitive interface, customers can easily browse store inventory, engage with loyalty programs, and even choose various payout options—whether it’s cash, digital currency, gift cards, or donations to charity. By incorporating these advanced features, we’re not only streamlining the transaction process but also giving customers more flexibility and control over their experience.
The kiosk also frees up our staff to focus on delivering exceptional service rather than managing cash, ultimately creating a more secure and efficient store environment. PayStation’s ability to support post-sale interactions like quote-to-store and mail-in services further extends our retail presence and provides unmatched convenience.
This innovation is set to reshape the retail landscape, particularly in the secondhand electronics industry. We believe PayStation is a significant milestone in our mission to revolutionize retail, offering a modern, secure, and customer-centric experience that will set new standards for the industry.
Can you elaborate on the security enhancements that the PayStation brings, particularly in terms of cash handling and store operations?
In our business, we knew early on that as we grew, cash handling and security would become critical issues that needed to be addressed in a smart way. Now, with over 500 units in development across the U.S. and internationally, we’ve developed the PayStation to tackle these challenges head-on. This proprietary kiosk essentially eliminates the risks and complexities associated with cash transactions.
By removing traditional cash drawers from our stores, we significantly reduce the risk of theft, creating a safer environment for both our customers and employees. The PayStation’s intuitive software allows customers to receive payments through QR codes or tokens, offering multiple payout options like digital currency, gift cards, or even donations to charity. This digitization not only streamlines the transaction process but also ensures a secure and controlled flow of funds.
We’ve designed the PayStation to support post-sale interactions and extend beyond our store locations, further reducing physical cash-handling points and enhancing overall security. This innovation is part of our commitment to using technology to safeguard our operations while delivering an exceptional customer experience.
How does the PayStation’s ability to handle post-sale interactions, like quote-to-store and mail-in services, contribute to customer convenience and satisfaction?
The PayStation was built to improve customer wait times, expedite trade-ins, and provide more flexibility in payment options beyond just cash. As we continue to extend our powerful real-time buying, selling, and trading data streams, we’re able to offer customers a clearer understanding of their device’s value, even outside of the store. With the PayStation, customers can complete the majority of a second-hand trade-in with minimal employee assistance. Our mission has always been simple: revolutionize and focus on enhancing the customer’s second-hand trade-in experience.
Loyalty and referral programs are crucial for customer retention. How does the PayStation integrate these elements to promote ongoing customer engagement?
I completely agree, but within our ecosystem, we see an exceptionally high customer return rate—even outside of our loyalty programs. This is driven by the simplicity of trading in electronics, our competitive cash payouts, and our unwavering commitment to delivering an exceptional customer experience. Customers who trade in with us often leave as brand advocates, spreading the word and driving referrals and repeat business.
But, yes, loyalty and referral programs are indeed key to building lasting relationships with our customers, and the PayStation plays a central role in integrating these elements seamlessly. Through its intuitive interface, customers can easily enroll in our loyalty programs directly at the kiosk. Every time they use the PayStation to buy, sell, or trade electronics, they can earn rewards points that can be redeemed for discounts, special offers, or even gifts. This instant feedback keeps them engaged and encourages repeat business.
The PayStation also streamlines the referral process. Customers can quickly refer friends or family members through the kiosk and receive incentives when those referrals lead to transactions. By making it easy to participate in these programs, we create an ongoing cycle of engagement. Customers are not just completing a one-time transaction—they’re becoming part of a community where their continued interactions with PayMore are recognized and rewarded.
This integration of loyalty and referral programs through PayStation not only boosts customer retention but also enhances their overall experience. By fostering a sense of value and appreciation, we’re able to maintain a strong connection with our customers long after their initial visit.
With the PayStation extending PayMore’s presence beyond traditional store locations, what impact do you foresee this having on your retail footprint and customer reach?
Currently, the PayStation is being installed exclusively in existing PayMore Stores to enhance the customer experience and streamline cash management. As our tech infrastructure expands, you’ll see our brand and service offerings extend beyond the walls of these stores in a calculated, locally focused way, driving additional business to our franchisees and offering even greater convenience for our customers.
Sustainability is a core part of PayMore’s mission. How do the PayStation and other initiatives at PayMore align with your goals to reduce electronic waste and promote eco-friendly practices?
Sustainability has always been central to PayMore’s mission, and the PayStation plays a crucial role in supporting our eco-friendly practices. While customers still need to visit our store and interact with our staff to trade in their devices, the PayStation enhances this process by offering a secure and streamlined way to complete the transaction. After trading in their device at the register, customers receive a ticket or digital QR code which they can take to the PayStation to quickly and conveniently receive their payment, just like using an ATM.
By simplifying the payout process, we encourage more people to trade in their electronics rather than discard them, reducing the amount of e-waste ending up in landfills. It’s about making the entire experience as smooth and hassle-free as possible, so customers are more likely to choose this sustainable option.
In addition to the PayStation, PayMore is dedicated to educating our customers on the environmental impact of electronic waste and the importance of responsible recycling. Our stores offer a trusted avenue for people to not just sell their devices but also contribute to a more sustainable cycle of electronics use. The PayStation complements these efforts by ensuring the process is efficient, secure, and customer-friendly, helping to further our goal of reducing the carbon footprint of discarded electronics.
PayMore is also working on several other proprietary innovations. Could you share how these developments, such as the new franchise management system and partnerships with Shopify and Google, will enhance the overall retail experience?
As a tech and data-driven company at heart, we’ve always prioritized developing custom technologies to fit our unique needs. There’s nothing off the shelf that could run our operations the way we do—it’s because we’re one of a kind. We’ve built the entire software infrastructure that powers our internal franchise system, from onboarding new franchisees to opening stores. This allows us to launch locations quickly, identify inefficiencies, and help new stores build faster and more cost-effectively.
While we can’t reveal too much, I can share that we have 14 projects currently underway, with over 62 developers working hard on key initiatives. These projects will not only scale our franchise network faster, but they’re also designed to reduce costs and put more profits back into the hands of our franchisees—all while keeping the focus on enhancing the in-store customer experience.
Our partners at Google and Shopify have been incredible, providing invaluable guidance and support for our brand and vision. We’re thrilled to be aligned with such great partners who consistently go above and beyond for us, and I’m excited to see where our relationship takes us. Big things are coming!
Part of my motto is simple: If we like it, if it makes sense—we’ll build it and own it. Keep a lookout!
What challenges have you encountered in implementing these advanced technologies, and how have you addressed them to ensure they deliver on their promise?
The challenges we’ve faced in development stem from coding into uncharted territories. When you’re building everything from scratch—starting with brainstorming sessions and whiteboards—you often have to take a more fluid, waterfall approach. Ideas evolve, and functions grow as you go. Staying on top of the latest technologies and cloud infrastructure keeps things moving swiftly, but also brings its own set of challenges. For instance, expanding into international markets requires system modifications while simultaneously building new functionality on top of those changes.
That said, because we control our technology, we’re able to roll it out much faster for testing with our franchisees and internal teams. This gives us the ability to quickly identify what’s working, what’s not, and which features we want to pursue further.
What are your long-term goals for PayMore Stores, and how do you plan to continue driving innovation and sustainability in the secondhand electronics market?
My main focus for PayMore is to ensure that all our systems remain proprietary, as they currently are, and to continue building our data and technology to support rapid and efficient growth. With 50 stores already open and 500 units in development in several countries, we’ve established ourselves as the leaders in the resale electronics market, mastering a concept that truly resonates with consumers. Our long-term goal is to continue this rapid expansion and become a household name—recognized everywhere as the go-to destination for buying, selling, and trading electronics.
Innovation and sustainability will continue to drive our efforts as we grow. By keeping all our systems proprietary, we can adapt and enhance our technology to meet the evolving needs of our customers and the market. This flexibility allows us to introduce new features, streamline our operations, and further promote eco-friendly practices. We want PayMore to not only be known for providing a convenient, secure place to buy and sell electronics but also for making a tangible difference in reducing electronic waste. Our vision is to change the world by setting a new standard in how electronics are reused and recycled, combining business success with a strong commitment to sustainability.
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