Out of the nearly 11 million businesses in Mexico, only around 1 million accept card payments. Clip is working to democratize digital payments through its multiple payments solutions which include debit and credit cards and a credit-card reader that fits into smartphones.
The card reader has been particularly successful among small businesses such as street vendors, tourist guides, and corner stores.
“About 85% of our clients accepted only cash before us, so we can really say that we are democratizing digital payments in Mexico,” said Adolfo Babatz, founder and CEO of Clip.
The startup has also recently started offering cash advances to clients which come with an interest rate of 10-15% and are repayable over three to four months. With the new funding, Clip is looking to make new hires and push the growth of the company aggressively. The startup is also considering an IPO.
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