 "Offline payments enabler ToneTag raises $1 mn from Reliance Capital")
ToneTag, a Bengaluru-based firm that has developed technology that enables contactless payments through mobile phones, raised $1 million (Rs 6.4 crore) in Series-A funding from Reliance Capital’s venture fund arm.
The firm uses a patented solution that enables consumers to pay for goods and services through near field communication (NFC) technology that uses radio or sound waves.
ToneTag says the payment solutions work on feature phones as well as smartphones. The firm says no sensitive data of the customer is saved either on the mobile or on the cloud.
“Our technology is providing tools to all stakeholders — the issuers, the acquirers, the merchants and the consumers to realise frictionless in-store and in-app mobile payments,” said Abhishek, chief executive officer of ToneTag. The funds will be primarily used to expand its team from the current 14 to about 34 and to get more enterprises to use the technology.
Nearly 41 per cent of all e-commerce transactions in India happen over mobile, the highest globally, according to a May 2015 report by private equity firm Kleiner, Perkins, Caufield & Byers.
Abhishek added that though technology giants like Microsoft already has developed the technology, it has not been used in the retail space yet. ToneTag looks to partner with more companies in the m-commerce space and banks. It has partnered with mobile payment solutions like MobiKwik, PayU and Ezetap and YES Bank in India prior to formally announcing its services in India.
“The consumer now has the ability to make payments directly from their mobiles phones using their existing m-wallets, card on file, card present (HCE) and direct bank transfer options. We believe this product enriches the transaction experience of the consumer and will assist in changing the proximity payment landscape,” said Reliance Venture Asset Management in a statement.
ToneTag is backed by angel investors like Ram Sellaratnam and Rajesh Yohahanna.
The firm uses a patented solution that enables consumers to pay for goods and services through near field communication (NFC) technology that uses radio or sound waves.
ToneTag says the payment solutions work on feature phones as well as smartphones. The firm says no sensitive data of the customer is saved either on the mobile or on the cloud.
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Founded by Kumar Abhishek, a former Infosys employee and Vivek Kumar Singh, a chartered accountant by profession, ToneTag’s solution has been piloted in India and other marktes.
“Our technology is providing tools to all stakeholders — the issuers, the acquirers, the merchants and the consumers to realise frictionless in-store and in-app mobile payments,” said Abhishek, chief executive officer of ToneTag. The funds will be primarily used to expand its team from the current 14 to about 34 and to get more enterprises to use the technology.
Nearly 41 per cent of all e-commerce transactions in India happen over mobile, the highest globally, according to a May 2015 report by private equity firm Kleiner, Perkins, Caufield & Byers.
Abhishek added that though technology giants like Microsoft already has developed the technology, it has not been used in the retail space yet. ToneTag looks to partner with more companies in the m-commerce space and banks. It has partnered with mobile payment solutions like MobiKwik, PayU and Ezetap and YES Bank in India prior to formally announcing its services in India.
“The consumer now has the ability to make payments directly from their mobiles phones using their existing m-wallets, card on file, card present (HCE) and direct bank transfer options. We believe this product enriches the transaction experience of the consumer and will assist in changing the proximity payment landscape,” said Reliance Venture Asset Management in a statement.
ToneTag is backed by angel investors like Ram Sellaratnam and Rajesh Yohahanna.