Phos, the UK fintech company that offers a software-only PoS that allows merchants to accept payments directly on their phones without the need for additional hardware, has raised EUR 1.3 million in funding. The round was led by New Vision 3, an early-stage VC based in Bulgaria (where part of the Phos team is based), in which a number of undisclosed angel investors participated.
Phos brings the total amount to € 2.5 million to date and is used to expand the development team. New functions are introduced here, such as "PIN on Phone", a software development kit (SDK) and a new integrated loyalty system.
Phos was founded in 2018 and has developed a software that transforms any NFC-equipped Android device into a payment terminal that eliminates the need for additional hardware and lowers the total cost of ownership. The startup states that its solution can be deployed quickly and is “unique” by telephone and which means that each bank can act as an acquirer.
"Millions of merchants and merchants do not accept card payments because they find the current hardware to be inconvenient or expensive," Phos co-founder Ivo Gueorguiev told TechCrunch. "Most merchants who accept card payments find the hardware operating costs high. [while the] Current POS hardware has no added value, with the exception of very expensive smart terminals like Clover."
To fix this, Gueorguiev According to Phos technology, contactless card payments are accepted directly on Android phones and other Android devices without additional hardware, and help merchants make better use of data.
"We offer retailers an alternative to old and expensive technologies, namely [by using] devices that they already own ̵
In terms of launch, Phos focuses on a B2B model where Fintech works with partners to distribute the product, such as banks, acquirers, PSPs / ISOs, large direct traders and platform players.
“The end user of the product will mainly be retailers at the long end of the business who are known to be difficult to reach in a cost effective manner. Adds Gueorguiev.
He cites use cases as small retailers and market traders where conventional POS solutions are not suitable due to cost and maintenance problems. Direct sales and multi-level marketing; Couriers and delivery services ("In certain markets, cash on delivery is still a predominant payment method with over 90% cash," says Gueorguiev). Craftsmen; Taxi driver; Sale of insurance fields; and even large retailers who can empower sales reps to close aisles and reduce queues.
Konstantin Petrov, partner at NV3, adds: “We are very happy to lead the investment round in Phos and firmly believe in the high potential of the company. The most important prerequisites for success are there: a strong and visionary team with many years of experience in this area, a huge, underserved market of small merchants who do not accept payments other than cash, and innovative technology that offers a first-mover advantage . In addition, fintech is seen as a strategic vertical in the investment strategy of the NV3 Fund, so Phos clearly represents a perfect addition to our portfolio. "