Mexican Card Payment App Clip Raises US$100m

Mexican mobile payment app Clip has reportedly raised US$100 million from various venture capital funds including Japanese investment group Softbank.

Softbank sank US$20 million into the startup, according to media reports, with New York City-based investment firm General Atlantic among the other investors.

Clip’s mobile app serves as a credit and debit card reader, making it is easier for small-business owners such as shopkeepers to accept card payments.

Clip’s credit card reader has become popular across the country given the relatively small number of citizens and businesses with bank accounts.

Clip offers a portable card-reading device that connects to the headphone jack of smartphones and tablets.

Clip, headquartered in Berkeley, California, was founded in 2012 by Adolfo Babatz and Vilash Poovala, according to Crunchbase. Most of its employees work outside of Mexico City.

The investment comes as the Mexican government is preparing to build a robust digital payment system as part of a broader plan designed to help the unbanked population engage in cash-less transactions.

In early 2018, the Mexican government passed a legislative bill regulating financial technology firms, as well as the circulation of cryptocurrencies, such as Bitcoin, in a move aimed at bringing about financial inclusion.

In the space of few months, more than a hundred fintech startups were launched offering a range of financial services, including payments, remittances, lending, and enterprise financial management.