Clip Startup to Offer Square-Like Mobile Payments in Mexico
Startup Clip has raised $1.5 million to develop a mobile payments system designed for users in Mexico and other Spanish-speaking countries. The system is comparable to Square, and features a payment and credit card reader that fits into the headphone jack of an iOS or Android device. The device can be used by opening a free Clip app, entering the amount to be charged, and swiping a card through the encrypted card reader. Clip asks customers for their cellphone number and sends a four-digit text message to their phone, which the customer then enters into the Clip app. If the code matches, the customer signs and receives their receipt via SMS or email. The platform can be used by both businesses and individuals. Clip CEO Adolfo Babatz says Mexico currently lacks a strong credit card infrastructure, compelling most people to withdraw cash from ATMs. “With our focus on security, we can give consumers confidence that they will be charged the right amount when they process the card,” Babatz says.
From “Clip Raises $1.5M to Fund Square-Like Mobile Payments in Mexico”
VentureBeat (05/28/13) Takahashi, Dean