Published On: Thu, Apr 9th, 2020

Phos, a UK fintech that offers a software-only POS for smartphones, raises €1.3M

Phos, a U.K. fintech that offers a software-only PoS so that merchants can accept payments directly on their phones but a need for additional hardware, has lifted €1.3 million in funding. The turn was led by New Vision 3, an early-stage VC formed in Bulgaria (where a partial of a Phos group is based), with appearance from a series of unnamed angel investors.

It brings a sum lifted by Phos to date to €2.5 million, and will be used to grow a growth team. This will see new facilities introduced, such as ‘PIN on Phone,’ a Software Development Kit (SDK), and a new integrated faithfulness system.

Founded in 2018, Phos has grown program that turns any NFC-equipped Android device into a payments terminal, negating a need for additional hardware and shortening sum cost of ownership. The startup says a resolution is discerning to deploy, and is “uniquely” phone and bank dubious i.e. any bank can act as a acquirer.

“Millions of traders and merchants do not accept label payments since they find a stream hardware untimely or expensive,” Phos co-founder Ivo Gueorguiev tells TechCrunch . “Most of a merchants who accept label payments find a cost of tenure of a hardware high, [while the] stream POS hardware offers no additional value, with a difference of really costly intelligent terminals like Clover”.

To pill this, Gueorguiev says Phos’ record accepts contactless label payments directly on Android phones and other Android inclination but a need for additional hardware, as good as assisting merchants make improved use of data.

“We offer merchants an choice to aged and costly technology, namely [by using] inclination they already possess – their phones,” he explains. “We also offer merchants a ability to use their transaction information for other business applications. This includes e-commerce tools, selling automation, loyalty, payroll, and more.

In terms of go-to-market, Phos is focused on a B2B model, saying a fintech work with partners to discharge a product, such as banks, acquirers, PSPs/ISOs, vast approach merchants, and height players.

“The final user of a product will be mostly merchants during a prolonged tail of a business, who are notoriously formidable to strech in a cost effective way,” adds Gueorguiev.

He cites use cases as tiny merchants and marketplace traders, where normal POS solutions are not suitable due to costs and upkeep issues; approach sales and multilevel marketing; couriers and smoothness services (“in certain markets ‘pay on delivery’ is still a accepted remuneration process with over 90% in cash,” says Gueorguiev); tradespeople; cab drivers; word margin sales; and even vast retailers that can commission sales people to tighten sales in a aisles and revoke queues.

Adds Konstantin Petrov, Partner during NV3: “We are really happy to lead a investment turn in phos and truly trust in a high intensity of a company. The all critical prerequisites for success are there: a clever and idealist group with years of knowledge in a field, a outrageous under-served marketplace of tiny merchants who do not accept payments other than money and an innovative record providing first-mover advantage. In addition, fintech is deliberate a vital straight in a investment plan of NV3 Fund, so phos is clearly a ideal supplement to the portfolio.”

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