Mobile payments company YellowPepper, focused on the Latin American market, said it closed $19 million in a Series C funding round. According to TechCrunch, the round was led by LIV Capital, a Mexican venture capital firm, and included Mexico Ventures (a program managed by Sun Mountain Capital), Fondo de Fondos, International Finance Corporation/World Bank Group and an existing group of investors.
The Miami-based company recently launched Yepex, its mobile wallet solution, and the funding will fuel the product's commercialization. Banamex, the 2nd largest bank in Mexico, will launch a beta with users and merchants in Mexico, TechCrunch reported.
Yepex, an Android and iOS-based virtual mobile wallet that stores debit and credit cards, is aimed at making online payments faster easier and safer, it easily integrates with loyalty and rewards programs, and gives users access to promotions.
But it differentiates itself from similar services through tokenization, a unique code the platform emits for each transaction. This way no sensitive information is given out, and the token system does not require merchants or customers to have portals with NFC technology on their devices to adopt mobile payments, making for much wider adoption, the company believes. Customers can still reap all the benefits and safety of mobile payments through the use of this service, and CEO and co-founder Serge Elkiner says the tokenization system also dramatically reduces fraud, a big problem in Latin America and elsewhere.
With an aim of revolutionizing payments in Latin America, YellowPepper says it currently enables over five million customers to execute over 30 million transactions per month. Founded in 2004 as a mobile banking company in Latin America, YellowPepper later identified a gap in mobile payment solutions.
The company has been growing rapidly, with 68 employees in the region, and 12 of them at YellowPepper's headquarters in Miami's Wynwood neighborhood. The company is looking to hire more iOS and Android developers in South Florida, Elkiner said.
Posted Feb. 3, 2015