Updated: MobiSwipe Secures Funding From One97 Mobility Fund


 

Updated below:

MobiSwipe Technologies, a Mumbai-based mobile PoS Company, has secured funding from One97 Mobility Fund. MobiSwipe allows merchants to use Android mobile phones or tablets as Point of Sale (PoS) terminals with the capability to accept credit and debit card payments. The monetary details of the funding have not been disclosed. Following the investment, Vijay Shekhar Sharma will also join the MobiSwipe Board and become Chairman for the company.

According to MobiSwipe, the funding will allow the company to scale up operations and accelerate growth, and it will launch customized products for merchants for the purpose.  One97 Communications*, the company behind the One97 Mobility Fund, already offers payment services under the Paytm payments brand. Vijay Shekhar Sharma, founder and CEO of One97 Communications said that the funding was in line with the fund’s philosophy of supporting mobile focused ventures, and that he believed that mobile phones could act as a catalyst to achieving a cash-free payment environment. On being asked if PayTM Payments would be integrated with MobiSwipe, he responded that the company does have plans for the same, but that will be part of the long term strategy.

The Mobiswipe founding team includes Suresh Santhanaramakrishnan, founding member of BharatMatrimony.com; and Harmeet Singh Arora, who has over 15 years experience in the web and mobile space having worked with companies like Rediff.com, Zapak.com among others.

Update: Speaking with MediaNama, the two founders informed that the company, which was founded last year, offers an integrated mobile PoS (point of sale) and mobile payments solution (patent pending), allowing merchants to integrate invoicing with their ERP systems in real time. This essentially means that merchants can amend orders at the point of sale through the terminals, which also reflects at their back end in real time. The company has inked tie-ups with various hardware makers for devices, and the system supports different PCI-PTS compliant terminals, including square like magnetic card/chip readers that attach to the phone’s headset jack to bluetooth enabled terminals with keypads and thermal printers. The devices offer device to application encryption. MobiSwipe has also tied up with a bank for processing payments and will announce the partnership in the next 4-6 weeks. It’s also in talks with merchants but the co-founders did not reveal any names.

The company will not charge a rental from merchants but will levy a transaction fee, which would vary from merchant to merchant depending on the volume and value of the transactions. Payments will be settled the next day, the company informed.

Other M-PoS Players in India

The mobile PoS devices segment continues to witness a lot of action this year. Recently, Ezetap, a company incubated by AngelPrime, startup incubator founded by Bala Parthasarathy, Shripati Acharya and Sanjay Swamy, launched a mobile PoS (Point of sale) solution that allows feature phones, smartphones and tablets to be converted into Point of Sale terminals, by adding a compact accessory, the Ezetap Card-Reader. As we mentioned, Axis Bank, an Indian private sector bank, partnered with Prizm Payments and Mswipe Technologies, to launch Swipeon – a mobile phone based card acceptance service or mobile POS terminal. CDMA based mobile operator, MTS, had also launched MTS mPOS, its own mobile point of sale device that can be attached to MTS mobiles for mobile transactions.

Earlier, PayMate, the mobile payments company,had launched a PayPOS mobile application, which also enabled credit and debit cards payments and electronic transactions on mobile phones at the point of sale (POS). However, unlike MTS’ mPOS service, PayMate is an application based payment application and is available on all Android/iOS devices.

It all started with US based payments company Square, co-founded by Jack Dorsey, which also offers a similar solution, however, it is also not available in India. PayPal also followed suit and launched PayPal Here. PayPal Here is a similar solution, however, it’s only available on the iPhone and not available in India yet.

*Disclosure: One97 is an advertiser with MediaNama