An India start up in the mobile payment space, Ezetap has finally made a move in the market. They successfully roped in an investment of around $3.5 million in its initial round of seeking funds to expand their business. As per the reports coming in, the company was able to source the funds from investors including the Silicon Valley based VC form, Social+Capital Partnership. In addition to this VC firm, Ezetap also got in investment from U.S.-based iPeter Thiel, Nicolas Berggruen, and David Sacks (Yammer fame).
Ezetap, the Bangalore based firm was established in 2011. The company uses point-of-sale hardware which can pull in data from the magnetic stripe of a customer’s debit or credit card. Once it is verified, payment data can be securely sent to the processing server. Ezetap app will work on a wide range of platforms like Nokia S40, Windows, Android and iOS.
The startup also provides an app for mobile payments that can be used in future bound feature- and smartphones along with the tablets. The company recently rolled out POS devices in the month of September in India testing it with online retail firms in Kenya. The plan of the company is to introduce these POS devices and mobile payment services to India and Africa markets.
Ezetap co-founder and CEO Abhijit Bose stated “In India alone, there are almost 300 million cards but only 600,000 terminals. However, the low penetration of smart-phones, distribution challenges, and early stage in market maturity requires a different understanding of the customer, business model, and breadth of capabilities.”
The company sources also claimed that a bank can launch this mobile payment service within 3 weeks. On the other hand merchants can make these POS devices worth Rs 1,500 live as soon as they are approved by the bank. Ezetap would be getting revenue by means of subscription pricing for merchants, who won’t be charged on individual transactions.