Mobile payments startup Momoe has raised $1.2 million in a round of funding led by IDG Ventures India and Jungle Ventures, with participation from India Quotient, reports ET Tech. The company will use the funds to expand its team as well as to reach 500 merchants outlets in the next few months.
Momoe currently offers an app for iOS and Android, that enables people to make payments using their smartphone when eating out, shopping or commuting. The solution works with over 25 restaurants in Bangalore as of now, including SouthIndies, Opus, Prost, Mezzeh and Brewsky among others.
Momoe works using credit card details, as opposed to other cashless payments solutions offered by virtual wallets like Paytm and Mobikwik among others. On downloading the Momoe app, users can use saved credit cards to make payments at the aforementioned restaurants by telling the waiter their phone number. The bill is then made visible on the app, which can also be split with friends before paying via a the user’s preferred card.
Essentially, companies like Momoe link a customer’s bank account or card with their application and hence the money moves out the bank account only at the time of transaction. In most other prepaid wallets, once a certain amount is loaded into it, it has to be spent at certain merchants who accept payments from the wallets and there isn’t a recourse for customers to take the funds stored in wallets if they are lying dormant. More on this here.
Founded in April 2014, by Utkarsh Biradar, Karthik Vaidyanathan, Ganesh Balakrishnan, Neelesh Bam and Aiman Ashraf , the app also offers loyalty rewards, event tickets and personalized offers to users. It currently makes a profit via a cut from merchants for each transactions, which it claims is similar to the rate charged by existing mPOS solutions.
Other payment solutions linking cards:
– iKaaz’s mobile application, MOWA, facilitates consumers and merchants to make and receive payments based on the mobile number. The company had tied up with DCB Bank for the same. Soma Sundaram, founder and CEO of iKaaz, explained to MediaNama that DCB Bank plays a key role as the money resides in DCB’s escrow account, which is disbursed to the other merchants and the receivers by DCB Bank.
– Multi-bank mobile banking app Chillr had tied up with HDFC Bank recently, to both send and receive money over the platform. According to the startup, the app will remove OTP requirements and the need to remember account number and passwords for HDFC Bank users. The company had mentioned it was in discussions with more than 15 banks for the integration, however it did not name any of them.