Payments

Making your store truly mobile through Zooz, a mobile payment app

MEDICI

Mobile commerce industry is set to reach $25 Bn in USA by the end of 2013, according to comScore. Merchants are capitalizing on providing an e-commerce experience to their customers, engage them and grow their revenues. Zooz, founded in 2010, is helping out the vendors to provide that e-commerce experience.

Zooz provides a payment platform to e-commerce websites & mobile apps. The company operates in more than 150 countries worldwide, giving developers around the globe an option to collect payments using Zooz. The payment platform covers Europe in general, much of Asia, and is also gaining traction in the North American market. The company also has a number of merchants signed up across Australia. The management of the company includes Oren Levy & Ronen Morecki – both holding the position of CEO & Co-Founder.

The company initially raised $1.5 Mn in funding in a seed round led by Lool Ventures along with Rhodium & Kima Ventures. In April 2013, it went for a Series A funding round in which the amount raised was around $2 million. Portola Valley & CA-based XSeed Capital led the funding, with participation from existing investors - Lool Ventures and Rhodium. This new round of funding will be used to finance development of new product functionalities, increasing traction with retailers, solidifying new partnerships, and building its presence in the expanding global payments market.  The total funding till date for Zooz stands at $3.5 Mn. Zooz is organically expanding on a global scale and has tie ups with over 5000 merchants.

The business model of the company follows a consumer driven approach, thereby concentrating on user behavior and needs in addition to technical aspects of payments. The company has partnered with leading payment gateways, processors, and e-wallets worldwide in order to ensure that both consumers and merchants enjoy full flexibility while making payment.

The company follows a pricing model of 2.8% + $0.19 per transaction, simply meaning that it doesn't get paid unless the developer does. The platform provides payment through credit cards as well as the option to use PayPal or Dwolla and other options. The company also enables customers to use their mobile bill to make payments by providing them mobile payment service. Throughout the whole process, the interaction of the customer is with the brand from which they are making the purchase, and not with Zooz.  There is no requirement of any user registration and no need to install a third-party app. Payment details are securely stored once these have been entered for the first purchase, thus minimizing friction and allowing a faster payment process in future purchases. The payment details for every customer remains safe as these are stored using patent-pending bank-grade security technology that prevents leakage of sensitive details and reduces fraud.

Some players providing similar solution as Zooz’s include Stripe, Braintree, WePay and Paymill. But many of these companies focus on developer needs and backend transactions, which makes Zooz a differentiated & preferred player by the customers.

Zooz helps in quick and easy integration. No complicated gateways or API means that merchants and developers can get on board with the payment platform.

LTP View: The ease of use and simplicity to integrate Zooz into a payment platform may help Zooz compete effectively in the market. With the mobile commerce industry in the expansion mode, Zooz and other players like Stipe, Braintree, WePay, Paymill and others may lure merchants to use them over others through lower transaction fees or with other innovations. One such innovation which Zooz has come up with and is still in a testing phase is the use of banner ads in the checkout process. Mobile users tap into the app to start off the checkout process. Additional earning options through use of Ads in checkout may help merchants prefer Zooz over others.

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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