Country: China
Year founded: 2011
No. of subscribers: Over 50,000 SMEs (Nov 2015)
- QFPay, a company similar to Square that takes e-payments via a smartphone, has secured series B funding worth $16.5 million
- QFPay allows merchants or users to accept debit and credit cards payments using a smartphone.
- It accommodates magnetic and chips cards and cards with or without PIN which fully comply with the PBOC payment requirements.
- The company’s ambition is to expand into more value-added services for merchants such as the provision of small loans, and is likely to expand into non-financially related services in an ecosystem-like play – it aims at becoming a marketing platform for SMEs.
Value Proposition
- The main product of QFPay is QPOS:By connecting a smartphone to the QPOS, which looks like a mini calculator as illustrated below, users will be able to convert it into a mobile payments system that accepts cards and gain access to other value-added applications such as transaction records and receipts to enhance business productivity
- Comparison between QPOS and traditional POS:
| QPOS | Traditional POS | |
| Price | No deposit, lower than market rate | RMB 1500-3000 |
| Application processing time | 2 working days | Weeks to months |
| Payments methods | Can be fixed, mobile and on-the-go | Only fixed |
| Value-added features | Transaction records, receipts, etc. | Only for payments |
How does it work?
- Step 1: Application and set up
– User can submit an application for QPOS and in 2 working days, upon approval, the subscriber will receive QPOS device along with the supporting devices and manual
– To facilitate the payments in a mobile device, user will need to download a compatible application in iOS, Android or Windows
– Once activated, the device will be set up for use - Step 2: Process payment transaction
– User can input the transaction amount in the mobile device and the same will appear in the QPOS
– Swipe the customer’s credit/bank card in the QPOS
– Upon successful transaction, the QPOS will request for verification
– The customer can then key in the PIN or sign if applicable
– Once completed, the customer can choose to receive the receipt to mark the end of the transaction - Step 3: Access value-added features
– In the application downloaded, the user can also access numerous other features including the transaction records for the past 2 months or to resend a receipt
– The application also allows cancellation of transaction within the same work day by inputting the security passcode