Credit card company American Express (Amex) has purchased a minority stake in Bangalore based mobile payment solution company #ezetap.
The company plans to expand its growth and service in the region with the newly received investment.
This move reaffirms the fact that of payment solution companies in India are resurging.
Earlier in February 2014, Ezetap raised $8 million in a Series B funding from a group of investors led by Helion Advisors along with participation from existing investors, Social+Capital Partnership and Nicolas Berggruen’s PE fund Berggruen Holdings.
Co-founded in 2011 by Abhijit Bose and Bhaktha Keshavachar, Ezetap allows feature phones, smart-phones and tablets to be converted into full-fledged Point of Sale terminals by plugging in the Ezetap Card-Reader, which has been designed and manufactured in India.
In 2013, the company had launched a new and advanced version of its mobile card reader for under $50. The service also received EMV-Level 1 & 2 Certification, a global certification for credit and debit payment cards based on smart-cards.
Recent Activity in the Indian Payment Space
Lately, the mobile payment space has been gaining a lot of attention from venture capitalists. Since October 2013 mobile payments solutions companies including Ezetap, Livquik, emPay, Mswipe, iKaaz and Eashmart have all raised funding.
With the growing number of Indian mobile subscribers, currently at around 893.3 million, payment solution companies like Ezetap which rely on this user base are attracting a lot of attention from international players.
Earlier in February, American Express Company, the corporate venture arm of Amex, made its first investment in India by investing in Capillary Technologies, a Bangalore based cloud software company.