Early stage mobile payments company Kash Corp has received $2 million in seed funding to help develop, market and expand its mobile payments solution as it opens to all retailers.
Kash’s mobile payment solution avoids the traditional credit card network altogether by using the money already in a user’s bank account to directly pay for purchases – without having to go through the credit card network.
Kash, therefore, appeals largely to merchants, allowing them to largely avoid high credit card fees. Merchants accepting Kash can clear transactions for 80 per cent less than traditional credit card processing. Instead of charging merchants 3 or 4 per cent per transaction, Kash processes payments for as little as 0.25 per cent, and many times for free, the company says.
Kash’s set up also allows merchants to increase checkout speed, track customer spending patterns and digitally promote loyalty programmes straight to the end user.
But the company is also appealing to consumers by highlighting the inherent security benefits of avoiding the credit card network completely.
“I come from a family of retailers and small business owners,” said Kaz Nejatian, CEO of Kash. “I understand what retailers go through when they see increasing credit card fees and more news about credit card fraud. I’m delighted to report that Kash is now ‘live’ and open to all merchants and retail users. We’re grateful to have the support of so many experienced and passionate investors. With Kash, we are on a mission to undermine the tyranny of high payment processing fees.”
Kash originally started in Canada, moving to San Francisco to join the Y Combinator summer 2014 batch. In the last few weeks it has managed to sign up dozens of retailers for its beta in the city as well as in the East Bay and in the San Jose/Mountain View area.
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