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MobiSwipe raises funding from One97 Mobility Fund

21 November, 2012

Mobile payment solutions provider MobiSwipe Technologies Pvt Ltd has received undisclosed funding from early-stage investor One97 Mobility Fund.

Vijay Shekhar Sharma, founder and CEO of One97 Communications, which runs One97 Mobility Fund along with private equity firm SAIF Partners, will join MobiSwipe board as its chairman.

Mumbai-based MobiSwipe, which enables merchants to accept credit and debit card payments using Android-based mobile phones and tablets as Point of Sale (PoS) terminals, will use the money to expand its operations to new cities and to hire more people, according to its co-founder and joint CEO Harmeet Singh Arora.

The company aims to launch its mobile payment solution in 3-4 weeks. “We have already partnered with a PSU bank to launch our product,” Arora told TechCircle.in.

With almost eight employees on board, the company is currently operating out of Mumbai and Chennai and will be opening offices in Delhi and Bangalore soon. MobiSwipe is also eying the Asian and Middle East markets to expand its operations in one or two years.

Founded in 2011 by Suresh Santhanaramakrishnan, a founding member of BharatMatrimony.com, and Arora, a veteran in the web and mobile space, MobiSwipe offers a mobile payment service to merchants to accept debit and credit card payments anywhere, anytime.

One97 Communications also offers online recharges for mobile, DTH and other utilities under the Paytm brand.

The mobile payments market in India has been witnessing surging interest, with a number of companies launching PoS solutions. Some of the startups that offer mobile-based PoS payments are MSwipe, EzeTap and iKaaZ. Earlier this month, Ezetap raised $3.5 million from Chamath Palihapitiya’s Social+Capital Partnership, a Silicon Valley-based VC firm, Peter Thiel (co-founder of PayPal) and others. Venture capital firm Sequoia Capital India recently invested an undisclosed amount in Mumbai-based Citrus Payment Solutions Pvt Ltd, an online payments solution provider.

(Edited by Prem Udayabhanu)

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1 Comment
Sachin Jain . 6 years ago

Congrats to the Mobiswipe team for the for the funding as the investment resonates the huge potential in Payments Industry in India. However, Indian market should be looked differently from U.S/European counterparts esp. given the over cautious approach followed by our regulator (RBI).

It will be interesting to see how Mobiswipe and some of their peers (Ezetap etc.) will be able to keep pace with the roadmap laid down by RBI with regards to CP transactions esp when it comes to EMV/2FA compliance beside other technical upgrades like DUKPT and TLE. While the intent of RBI is well founded, all these upgrades will add to the product cost thereby depleting their cost advantage.

The other key area will be security. While PCI DSS is in place and all incumbents have/will comply with the requirements, there needs to be hightened sense of security esp where the players are looking at replicating Square’s business model of just providing card swipe dongles and an application. How will security environment on phone (which doesn’t belong to POS provider but a person in such a situation) made “air tight” to ensure data integrity (we all have multiple apps on our smartphones and do we actually know what kind of data do these apps have access to!!). One bad example of data skimming on such a product will attract lot of eyeballs (esp RBI) given that we have a abnormally low value of reported credit card fraud in India as compared to our peers in developed world.

Lastly, out of 300m cards, credit cards should be just 25m while the remaining are debit cards. While we all know the usage of debit cards (besides taking money out of ATMs), acquiring banks needs to strongly push for debit card usage (given the lower merchant discount recently implemented) to increase number of transactions per POS as the same may be critical for Mobile POS to have a justifiable business case.

MobiSwipe raises funding from One97 Mobility Fund

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