Mobile payment start-up, IroFit has raised USD 600,000 in seed round led by Nordic early-stage VC Inventure, with participation from a payments industry software developer, Solinor and Rasheed Olaoluwa. The company aims to utilize the new funds to further develop IroFit’s platform and launch the service in developing markets where Internet connectivity is still a challenge.
IroFit will soon launch a mobile platform for small businesses to accept card payments via a mobile app and ‘EMV-certified’ card reader, constructed by various business management features like inventory management, sales accounting, CRM, loyalty management, and payroll support.
It is directly competing with Stockholm’s iZettle or many others online or mobile payment providers, but Irofit’s ‘Internet-free’ tech allows the platform to operate and make payments even without an internet connection, instead using basic GSM connectivity when no internet is available.
With this funding news the company has also announced that it has signed an agreement with “a leading financial institution” to launch a hundred thousand payment devices that will be available to the Nigerian market.
See Also: mPOS in India: What, Why and more
IroFit co-founder and CEO Omoniyi Olawale told TechCrunch that, “Our proprietary technology transmits secure card transaction data via basic GSM channels — USSD/SMS — thereby making it possible to process card payments in real-time even without an Internet connection. it would be wrong to think of IroFit as simply an “Internet-free” Square competitor, While the mPOS solution is our first product built on the platform, it can also process payments for wallet applications, cryptocurrencies, in-app payment processing, and even microlending services for small businesses in developing countries.”
Since it is targeting at emerging markets, India too could be a great candidate for this technology. Most mobile payments still involve passing through a bank’s payment gateway and thus require an active Internet connection. Mobile Internet still has a long way to go before matching up with mobile devices being used in the country, hence an Internet-free mobile payment system could surely come in handy.