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Flutterwave backs UK fintech Dapio in $3.4M round for its contactless payments play

  • March 30, 2022
  • 3 min read
Flutterwave backs UK fintech Dapio in $3.4M round for its contactless payments play

Dapio, the U.K.-based cashless payment solutions provider for businesses, today announced that it has raised $3.4 million to fuel the launch of its “Tap to Pay” solution for Android users in the U.K. and Europe.

African payments giant Flutterwave co-led the growth round with Techstars. Daniel Gould, venture partner at Asymmetry Ventures, and PactVC participated.

Formerly Paymob — not to be confused with the Egyptian payments processor of the same name — Dapio allows businesses to accept cashless payments in-store as its technology converts the back of any Android smartphone into a direct card reading terminal.

For micro-businesses and solo enterprises, especially those run by migrants, it isn’t easy to invest in hardware and buy point-of-sale systems because of how expensive and clunky they can be. And this affects how they can take payments from customers.

There are an estimated 3.2 million of these kinds of businesses in the U.K. And away from the fact that these systems are hard to purchase, this segment, which makes up 75% of all businesses in the U.K., are underserved by traditional payments providers.

“I entered the U.K. a few years ago and I always struggled with getting financial services, like insurance, opening bank accounts, starting accepting payments,” co-founder and CEO Kosta Du told TechCrunch in an interview.

“I exactly understand this pain, and how difficult it is to go to a bank and to go through the exact procedure that is applied to a big enterprise. It’s a problem my wife also faced when having to send wire transfers to pay clients because these microbusinesses were not eligible for big machines. And I just thought there should be a more elegant solution for solopreneurs and micro-businesses to make payments.”

Du, alongside his co-founder Grigory Gurbanov, proceeded to start Dapio in 2019. And in the years that have followed, to this point where it has raised some money, the company has engaged with various financial institutions to obtain licenses to operate a mobile app that replaces card machines.

Dapio’s launch is a sign of where the U.K. payments scene is currently — where contactless payments aided by NFC technology has exploded, making up a quarter of all payments in the country.

It’s even catching on globally, as Apple is planning to launch Tap to Pay in the U.S. But Dapio is solely targeting the Android market which accounts for 42% of the U.S. mobile market, 46% in the U.K. and 71% globally.

According to the company, its ‘Tap to Pay’ mobile app, which will be launched this spring, will allow any business to instantly accept contactless payments with the tap of a card or mobile phone. Its current partners include ZmBIZI and Payment Plus.

“If you are starting a business or an entrepreneur, you might need to go to a bank, open a bank account, ask for a machine that costs about $300. But what we invented is just a mobile app sitting on your phone,” said Du.

“You as a business owner or solopreneur when you need to choose to charge a payment, you just basically open the app while the customer’s card is placed behind the phone.”

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Incuabte Africa

Incubate Africa, founded on June 5, 2016, is a Tech company based and Founded in Africa with the main focus of showcasing African-developed technology to the rest of the world. We strongly believe in what Africa has to offer the world. #Revolutionizing the startup culture

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