Chinese mobile POS startup gains significant investment

China shopping

Chinese mobile point-of-sale startup Qiandaibao has raised an investment in the “hundreds of millions of RMB” from IDG Capital, Banyan Fund, Haitong Securities and Jiangxi Copper.

Techinasia quotes a Chinaventure.cn report, noting that the total funding amount could range anywhere between US$16.3 million to US$163 million.

Similar in function to Square and Loop, Qiandaibao makes mobile POS solutions that include a smartphone phob that, like Square’s offering, plugs into the headphone socket and can take payments from mag-stripe cards. The company, founded in 2008, was one of the first companies in China to be licenses as a third party payment business.

Qiandaibao takes bank cards, WeChat payment, AliPay as some banking app, facilitating payment without cash for merchants and customers in lower-tier Chinese cities with a poor payment infrastructure.

Qiandaibao’s daily transaction volume exceeds RMB 500 million (US$81.4 million) and provides its payment services to over one million small businesses. Qiandaibao-facilitated payments amounted to RMB 1.4 trillion (US$228 billion) in the second quarter of this year, but only makes up 0.3 per cent of China’s mobile payment transactions. The huge market is dominated by Alipay, which makes up nearly 80 per cent.

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