Start-up Clip has raised $1.5 million to introduce a mobile payments service in Mexico, one of the major markets in a region so far largely resistant to using mobile devices for making or receiving payments.
The firm will use the funds to launch a service that enables merchants to accept card payments on iOS and Android smartphones through the addition of Clip’s card reader and app. It will target Mexico initially.
Such services are offered by many competitors, most famously Square, but predominately in wealthier, western markets.
Instead Clip will target Spanish-speaking countries in Latin America (although Spanish speakers in the US are another target market).
Some big names including Telefonica and MasterCard have attempted to break mobile payments services in Latin America, although the emphasis has been on enabling payments by consumers, rather than their acceptance by merchants.
Clip was co-founded by CEO Adolfo Babatz who formerly worked for PayPal Latin America. He led the team that launched PayPal in Mexico.
The other co-founder is Vilash Poovala who is Clip’s CTO. He formerly worked for V.me, Visa’s digital wallet, and previously for PlaySpan, a virtuals goods and payments firm that was acquired by Visa.
Backers include 500 Startups, Accion, Alta Ventures and PlaySpan founder Karl Mehta.