Mobile Point of Sales (PoS) payment company MSwipe has raised an undisclosed amount of money from Venture Capital firm Matrix Partners. Point of Sales payment companies allow retailers and small merchants to accept credit card and debit card payments, and this service is particularly useful for e-commerce companies for accepting card-on-delivery payments. MSwipe and Sequoia Capital backed Prizm Payments partnered to launch Swipeon, an mPoS solution, last July.
MSwipe has applications for Java, Android and iOS devices, and its device plugs into a mobile phones audio jack to enable payments. In comparison, banks also offer mobile payment devices on a monthly rental basis, but these are bulky and the paperwork can be tedious; we found out in our conference, the device from the bank didn’t work when needed.
Much of India’s retail ecosystem is unorganized, and retailers typically don’t accept card payments; it remains to be seen whether they’ll want to, because in what is largely a cash (no-bill) economy allows, they have the option of evading taxes on retail purchases. Mswipe claims to have POS terminal deployments with 4000 merchants, in over 200 cities and towns across India.
Matrix Partners’ Mobile & Finance Investments
Matrix Partners is invested in Itz Cash (mobile payments), Basix (microfinance), Muthoot Finance (gold loan NBFC), Ver Se (mobile utilitarian applications), AskLaila (local business information), Twist Mobile (Mobile Gaming), u20pia mobile (USSD based social networking access). There is clear synergy between Itz Cash and MSwipe, and it’s worth noting that Itz Cash competitor Oxigen has launched an mPoS service OxiShaan.
How It Works
- Ezetap is an mPoS service incubated by by AngelPrime, startup incubator founded by Bala Parthasarathy, Shripati Acharya and Sanjay Swamy.
- 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.
- PayMate, the mobile payments company had launched a PayPOS mobile application. However, unlike MTS’ mPOS service, PayMate is an application based payment application and is available on all Android/iOS devices.
These are essentially built on the lines of Jack Dorsey founded payments company Square, which is also not available in India. PayPal also has its own service PayPal Here, which also isn’t available in India.
Updates: updated with mswipe demo video and information about OxiShaan
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