SimplyTapp, a leading provider of HCE services for merchants, announced late last week (Feb. 6) that it received an additional $2.5 million fundraising round as part of its Series B fundraising plan from mobile payments platform Mozido. This brings the total funding for the company up to $10.1 million.
The investment will be used to improve SimplyTapp’s research and development on its open-card issuance platform, which enables merchants to use NFC payment processing without interchange fees, as well as further integration of the NFC platform into its existing HCE services despite merchants’ slow adoption. The goal, according to the company, is to give users the same experience as Apple Pay, while allowing merchants to leverage a consumer’s mobile usage for in-app deals and experiences for increased sales.
“Our platform is being successfully used for a North American card issuing bank and in Chicago for the transit system. Likewise, merchants have the same requirement for an open, customer-focused mobile solution platform and we can fulfill their need today,” said Doug Yeager, co-founder and CEO of SimplyTapp.
SimplyTapp was founded in 2011 as a way of allowing developers to innovate and leverage mobile devices for tap payments and real world transactions. SimplyTapp combines NFC and HCE payment options in an effort to compete with PayPal and Stripe in the payments industry, according to an internal description of the company. Mozido is a company that specializes in providing financial services through mobile payments, including mobile payment processing and loyalty offers.
The investment in SimplyTapp is an effort for Mozido to keep up with what is expected to be an increasingly competitive mobile payments market that includes not just Apple Pay, but the possible entry of non-NFC Samsung Pay as well as entry from companies like Swatch, which aim to make mobile payments a wearable technology.