Clip, a merchant services company based in Mexico that is often compared with Square has announced that it has raised $8 million in a funding round led by Alta venture but the founding round also includes notable investors like American Express. Clip was created by two former PayPal employees and has notable domestic deals with leading payment service providers like Banorte, Banamex and Bancomed.
Commenting on the company, Adolfo Babatz, Clip’s co-founder & CEO said,
“Our product is designed from the ground up to satisfy merchant needs in emerging markets. We offer an incredibly simple solution that really helps merchants increase their sales. For example, with Clip, merchants can offer payments in installments to their clients with more than 18 issuers in Mexico. This makes small and medium businesses really competitive in the marketplace.”
Commenting on the investment by American Express, Rohit Bodas, partner, American Express Ventures said,
“We believe in the potential of Clip’s end-to-end payments technology as an important driver of commerce in emerging markets. This investment furthers our commitment to deliver additional value to small merchants, empowering them to grow their businesses through a seamless point-of-sale experience.”
In Latin America and in many regions around the world where developing countries represent a large number of the markets, many of the businesses located there are small businesses with limited electronic payment capabilities. While this is improving, companies like Clip and many others have the potential to help usher in a new generation of payment products and significantly improve electronic payment acceptance around the world.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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