Italian firm Jusp is set to become the latest entrant to the expanding European mobile point-of-sale market following a $6 million investment round led by two local venture capital firms.
The firm said the sum raised is one of the largest ever first rounds in Italy.
It was led by Principia Sgr and Vertis Sgr, with the participation of some leading angel investors.
The backing means Jusp can launch its card reader in Italy and other European countries, although it will be faced with competitors with existing products in the market.
However, the Italian firm claims it can differentiate itself through its device. Like rivals it enables small businesses to accept chip & PIN tranactions.
It claims the device (pictured) is the smallest and lightest on the market, although it does not specify whether it means the European rather than global market.
It also claims to be the only device that can be attached to smartphones and tablets via their audio jack, so creating a single appliance. Other competitors use Bluetooth technology for this connection, which is less convenient for merchants, said the firm.
This can only be true for Europe since US market leader Square offers connection via the audio jack. Square, however, is only present in the States and not Europe.
Small businesses pay a one-off fee of EUR39 to Jusp for its device, as well as a 2.7 per cent merchant fee for processing transactions. It works with both iOS and Android smartphones and tablets.