Micro and small businesses in emerging markets still struggling with online payments Many reason one, most of them are excluded Due to their size, and two, hardware from different payment ecosystems globally, it can be expensive to obtain hardware from providers.
UK based fintech nomod Allows these businesses to bypass the card terminal by providing a platform to accept card payments on their phones without any additional hardware. The company has raised $3.4 million in seed funding at a valuation of $50 million.
The payment will act as the flywheel of the company to acquire Building a Merchant Base and a Financial Operating System, Founder and CEO Umar Qasim | told Nerdshala,
The company plans to give merchants access to accounts, cards, local payment networks and lending. this suite of services is necessary Primary markets where Nomod has a significant trading base, such as Saudi Arabia, the United Arab Emirates, and Bangladesh,
For example, in Saudi Arabia, Of the more than 1 million registered businesses, only 3% have access to bank credit. In the United Arab Emirates, it can take Around Six months to set up a business bank account. For Bangladesh, Card POS hardware is quite expensive for small and medium merchants.
With Nomod, merchants can start dealing with payment issues earlier like tCan download Hey Nomod to your phone and process personal payments and payment links from customers,
Customers can use a variety of cards from Visa and MasterCard to American Express and Union Pay, or go contactless via NFC and QR codes. The company also allows traders to charge fees in over 135 currencies.
“A merchant can install Nomod today, sign up in three or four minutes and start processing payments in person and online using the payment link,” Kasim said in a call with Nerdshala,
Although the majority of Nomod’s traders are in the MENA and GCC region, Kasim says the platform has a global reach and allows traders to sign up from more than 40 countries in Europe, America, Australia, Africa and Asia.,
Kasim said the company is conducting trials with merchants in Nigeria and South Africa and hopes to launch both markets in a while,
“Our thesis is that card acceptance is a enough Similar action. Whether you’re doing it in Australia or India, or wherever, it’s not Really matter. we feel As such we can do a lot of markets in parallel, and today, we allow traders from 44 different countries to sign up to use our platform.”
For now, nomod can to acquire and settle merchants in the US, UK and UAE in their local currencies – Dollar, Pound and Dirham.
But in other markets where there is some currency fluctuation, say, in South Africa, Nomod applies some FX costs, allowing currencies to change., Kasim says that once there is significant adoption in such markets, Nomod will optimize its platform for traders and begin to acquire and offer. Settlements in their local currencies,
out of that organic ycOf course, Nomod describes itself as “square minus the hardware,” and Kasim believes the name is telling, especially in how payments have evolved since Stripe launched in 2010.
According to the founder, if $95 Billion Company Had to Launch New, Wouldn’t Need Hardware, HoweverThe result of their bias is how payments work in emerging markets such as the United Arab Emirates, where most businesses conduct their fintech transactions using wallets or tokens., stage strips. is one of listed partner To accept personal payments.
“Some platforms are seeing around 60-70% all of Their online transactions are coming from Apple Pay. And so what you’re looking for is that consumers these days are actively tokenizing [payments] on their device. ,
Prior to Nomod, Kasim ran and sold Jadopado, an e-commerce marketplace platform Afternoon, an Amazon competitor in the MENA region.
He then took on a few consulting gigs, and he started Nomod as a side project in 2018, seeing the wave of fintech and neobank activity storming the UK., he was the one Simple app that allowed anyone with a Stripe account to pay in person.
Running the product gave him two broad ideas of what the payoff might look like in the future. was the first get plastic cards replaced by Digital tokens or native wallets in consumer fintech, And for fintechs targeting merchants, legacy hardware will pave the way for software-based solutions.
“At the moment there is no effective mobile software solution for payments globally. so i almost feel like there is an opportunity for us to build like whatsapp or telegram equivalent For things like payment acceptance or face-to-face, as well as payment links and subscriptions,
Since then officially When launched in March 2021, Nomod has acquired Around 4,500 traders. According to the company, its total processed volume has grown 11.5x and is on an annual run rate of $7 million.
The company, which recently graduated from the Y Combinator summer batch, has received an investment led by Global Founders Capital, Other VCs such as Kingsway Capital, Goodwater Capital, and Angels in the Valley and globally, including a partner of DST Global, participated.,