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Mobile payments is arguably one of the hottest topics at the moment, and LightSpeed, a company that builds point-of-sale software for brick-and-mortal retailers, is joining the conversation. Today the company announced a $35 million round and plans to launch a new mobile payments service later this fall.
“90 percent of retail still happens in the brick-and-mortar stores,” LightSpeed Dax Dasilva told VentureBeat in an interview. Today, LightSpeed is used in 20,000 stores, and its customers now process $7.5 billion in sales per year.
LightSpeed will be rolling out support for mobile payments later this fall in partnership with payments processing company Vantiv, offering an alternative to traditional credit card processing, Square, and the like.
“We don’t think there’s a lot of value to payments without that [retail] software. … We want to get away from retailers looking at payments and inventory as different silos,” said Dasilva.
Unlike mobile payments company Square, which got its start with helping small businesses process credit card payments and eventually expanded its offering with analytics software, mobile ordering tools, and so on, LightSpeed is building in the opposite direction.
Although Dasilva didn’t share any specifics on processing fees, he said the “rates will be competitive” as he views retail stores as fairly low-risk. For context, Square charges a 2.75 percent transaction fee, PayPal charges 2.7 percent, Intuit charges 1.75 percent, and Amazon’s new card reader is currently coming in at 1.75 percent before it bumps up to 2.5 percent on Jan. 1, 2016 for folks who sign up before Oct. 31.
iNovia Capital led this round of funding, with Hercules Technology Growth Capital and existing investor Accel Partners also chipping in.
The company plans to use the new money towards its young payments product as well as to expand internationally more aggressively. Currently, about 85 percent of LightSpeed’s customers are in North America.
LightSpeed was founded in 2005 by Dasilva and is based in Montreal, Canada, with additional offices in Silicon Valley, New York City, Olympia, Wash., and Toronto, Canada. Along with LightSpeed’s first round in 2012, the new raise brings LightSpeed’s total funding to $65 million.
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