Originally published as Kuapay Gets $4Mil, Expands Mobile Payments to NYC in Technorati Business
Santa Monica based Kuapay, who recently raised $4mil from a single private investor, announced it’s plans for entering the New York City market yesterday. The company provides consumers with a free wallet app available for iOS, Android, Blackberry and soon Windows Phone, enabling them to pay for goods and services anywhere Kuapay is accepted. As of now there are around 40 merchants in the Southern California area, and the company has also just signed a deal providing 100 California based KFC franchises with their technology. This is in addition to The Bean, a chain of New York City based coffee and food shops, which Kuapay signed up as part of their launch in that area.
The company has been running technical trials in select cities in California, Chile, Spain, Panama, Columbia and the UK and with the most recent funding will shift to commercial trials. The company was started back in 2010 and offers merchants some unique features including integration of loyalty programs, custom offers and charges a per transaction fee similar to the way Square operates, with no set-up or monthly subscription fees.
Customers can download the free wallet app and customize thier experience by saving various coupon offers, reward programs and credit/debit cards using a patented encryption process. To pay for something users launch the app, which will then display a QR code or compatible 1 dimensional barcode for older systems, of the card they wish to use. The POS system then scans this to complete the transaction. As noted in an article in TechCrunch, “…it doesn’t actually transmit the full credit card information during the scan, for security purposes.”
As part of thier expansion in to the NYC market, Kuapay and The Bean will be providing midday special promotions to encourage downloads, this started yesterday and will run for 10 days. As an example, yesterday The Bean targeted NYU students offering a free $15 lunch just for downloading the app. The special was tweeted from the Kuapay Twitter account, and subsequent offers can be found by following @kuapay_mobile.
Open since 2003, The Bean is a local NYC coffee shop that operates 3 locations within Manhattan. The three locations are at 54 2nd Avenue, 824 Broadway, and 147 1st Avenue, New York, NY. Ike Escava, co-owner of The Bean said in the Kuapay announcement, “Given all the options on the market, I had to go with a solution that offered exceptional value to my customers, and Kuapay does.”