Phos, the U.K. fintech that provides a software-only PoS so that merchants can accept payments directly on their phones without the requirement for additional hardware, has actually raised EUR1.3 million in funding. The round was led by New Vision 3, an early-stage VC based in Bulgaria (where a part of the Phos team is based), with involvement from a number of unnamed angel investors.

It brings the overall raised by Phos to date to EUR2.5 million, and will be used to grow the development team. This will see brand-new functions introduced, such as ‘PIN on Phone’, a Software Advancement Set (SDK), and a new incorporated commitment system.

Founded in 2018, Phos has actually established software application that turns any NFC-equipped Android device into a payments terminal, negating the need for additional hardware and decreasing total expense of ownership. The startup says its service fasts to deploy, and is “uniquely” phone and bank agnostic i.e. any bank can serve as the acquirer.

“Millions of merchants and traders do decline card payments due to the fact that they find the existing hardware bothersome or expensive,” Phos co-founder Ivo Gueorguiev informs TechCrunch. “The majority of the merchants who accept card payments discover the cost of ownership of the hardware high, [while the] current POS hardware provides no additional worth, with the exception of extremely pricey clever terminals like Clover”.

To treat this, Gueorguiev says Phos’ technology accepts contactless card payments straight on Android phones and other Android gadgets without the need for extra hardware, along with helping merchants make much better usage of data.

“We provide merchants an alternative to costly and old innovation, namely [by utilizing] gadgets they already own– their phones,” he explains. “We also use merchants the ability to utilize their deal data for other organisation applications. This includes e-commerce tools, marketing automation, commitment, payroll, and more.

In terms of go-to-market, Phos is concentrated on a B2B design, seeing the fintech work with partners to disperse the item, such as banks, acquirers, PSPs/ISOs, large direct merchants, and platform gamers.

“The final user of the item will be primarily merchants at the long tail of the business, who are infamously tough to reach in a cost effective method,” adds Gueorguiev.

He points out use cases as small merchants and market traders, where conventional POS options are not proper due to costs and upkeep problems; direct sales and multilevel marketing; carriers and shipment services (“in particular markets ‘pay on shipment’ is still a predominant payment method with over 90% in money,” states Gueorguiev); tradespeople; cabby; insurance field sales; and even large sellers that can empower sales individuals to close sales in the aisles and minimize queues.

Includes Konstantin Petrov, Partner at NV3: “We are really happy to lead the financial investment round in phos and genuinely think in the high potential of the company. The very important prerequisites for success exist: a strong and visionary team with years of experience in the field, a huge under-served market of little merchants who do not accept payments aside from cash and an ingenious innovation providing first-mover advantage. In addition, fintech is considered a strategic vertical in the investment technique of NV3 Fund, so phos is plainly a perfect add to our portfolio.”

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.