Promising to disrupt Mexico’s mobile point of sales market, investors are enthusiastic the startup can catch up and scale up against international competition
Mexico City-based Clip, a payments solutions company that lets retailers accept all sources of payment, announced an $8 million round this week led by Mexican venture capital firm Alta Ventures joined by new funders American Express Ventures and Sierra Ventures. Other investors included Mexico Ventures (Fondo de Fondos), Angel Ventures Mexico and Endeavor Catalyst.
Their flagship technology, Clip Reader, works with magnetic stripes and chip cards and attaches to customers’ smartphones or tablets to process payments. It costs businesses $580 and operates via WiFi or 3G/4G/LTE.
“We offer an incredibly simple solution that really helps merchants increase their sales,” CEO Adolfo Babatz said in a statement. “Merchants can offer payments in installments to their clients with more than 18 issuers in Mexico. This makes small and medium businesses really competitive in the marketplace.” They also accept popular U.S. cards like Visa, Mastercard, and as might have been obvious by the list of investors, American Express.
Investors hail the company as “the leader” in mobile point of sales (mPOS) and payment processing for small businesses in Mexico and Latin America. But Clip is hardly alone in the mPOS space in Mexico.
Banamex (Citigroup’s Mexican subsidiary) launched its iAcepta Móvil thanks to work by Stratus Technologies and Ecuadorian company B-Wise way back in 2013. iZettle developed an mPOS card reader for Spanish bank Banco Santander, now being used by 50,000 customers in Mexico according to El Financiero. Señor Pago, Mozido and AnywhereCommerce are also players in the Mexican mPOS market accoridng to mobilepaymentstoday.com.
Clip was co-founded in 2011 by CEO Adolfo Babatz and Vilash Poovala in San Francisco but maintains its headquarters in Mexico City. One of its early investors is former PlaySpan CEO and current Menlo Ventures partner Karl Mehta, who took part in their May 2013 $1.5 million seed round. Their platform is available on iOS and Android. To see how it works, check out the video below (you don’t need to understand Spanish to see what’s going on).