“The retail payments market is currently dominated by the credit card model monopoly by Visa, Mastercard and others,” explains SensePass. “Adding payment options to this huge market is breaking that long-standing monopoly and changing the way people shop and checkout both in retail and online. This change is new to the game. Bringing a source of funding to viewers who have been left behind due to credit card restrictions, such as the unbanked or underbanked population, and younger generations using alternative forms of cards It brings new opportunities: e-wallets, cryptocurrencies, payments like buy now, pay later.”
SensePass has built an omnichannel payment network that works around any digital payment method or digital wallet. These changes will increase shoppers’ purchasing power, according to the company, which raised a total of $5.3 million after securing his $3 million from Menara Ventures, Direct Insurance (Bituach Yashir) and angel investors last month. , retailers costs are reduced. “This is the revolution that retailers have been asking for for years, and now technology is here to help them achieve it,” the company said.
“At the end of the day, our solution can accommodate any business that processes payments. It’s a blue ocean of opportunity.”
SensePass participated in CTech’s Startup Boarding Pass series to share how they are tackling the credit card industry.
SensePass is a breakthrough innovator in contactless payments. Launched by a team of veteran technology veterans and fintech innovators, SensePass pushes the boundaries of the digital payment process to provide shoppers with a fast and seamless checkout, while increasing conversions and lowering commissions for retailers. We are reducing. SensePass works around any digital payment method or digital wallet, including an integrated system that goes far beyond traditional wallet apps and a unique SensePass device that shoppers can access with a tap of their phone to increase their purchasing power. built an omni-channel payment network that
Moty Arcuschin, CEO: IT industry executive and entrepreneur with extensive experience operating at scale in a global environment. He is a fintech and online industry veteran with over 20 years of experience. He is also the former co-founder of Mexos and Credimatch.
Chen Cohen, COO: Over 15 years of experience in banking technology and managing large operations. He was previously head of Hapoalim Bank Bits.
Nir Alperovich, CTO: 20 years of programming/hacking experience. Mobile and security consultant for multiple banks.
Last investment round: $3 million
Final investment stage: seed
Last investment date: September 2022
Total investment to date: $5.3 million
Investors (major and all): Menara Ventures, Direct Insurance (Bituach Yashir), Angel Investor
Current number of employees: 13
The idea was born when we noticed the increasing adoption of alternative payment methods such as e-wallets, cryptocurrencies and buy-and-pay later. We no longer store our money and financial assets exclusively in bank accounts. More and more people are exploring and experimenting with alternatives. The pandemic has contributed to this trend, but it’s not the only factor. However, retailers still lag behind in their ability to support all these payment options in their stores as they are limited to rails such as credit card networks, Visa and Mastercard. You can have a seamless checkout with any of these new options. This gives shoppers more freedom to choose when shopping, increasing purchasing power, while allowing retailers to deliver a frictionless digital his checkout experience and reduce costs. .
What is your product need?
Retailers are constantly looking for ways to reduce costs and improve the overall shopping experience, especially in the last mile (at checkout), while increasing conversions and average tickets. Unfortunately, the current infrastructure for in-store payments is limited to card-based transactions using the old rails developed by the credit card monopoly. As a result, retailers have to pay high fees per transaction (for example, in the US the average he is 2.5%). They cannot easily meet the growing demand to use other payment instruments that also allow them to manage their money and financial assets. Examples like Venmo, Cash App, Klarna, Sezle, and Splitit are not readily available to shoppers at checkout. SensePass exists to fill exactly this gap. By offering retailers all these payment methods in one place, she gives shoppers greater freedom of choice, increases purchasing power, and reduces costs for retailers, all while seamlessly using mobile phones. enable a perfect checkout experience.
How are markets changing?
The retail payments market is currently dominated by the credit card model monopoly by Visa, Mastercard, and others. Adding payment options to this huge marketplace is disrupting long-standing monopolies and changing the way people shop and checkout, both in retail and online. and new opportunities for viewers who have been left behind by credit card restrictions, such as the unbanked or underbanked population, and younger generations who use alternative forms of cards. Brings Payments (e-wallets, cryptocurrencies, buy now pay later, etc.). These changes will increase the purchasing power of shoppers and reduce costs for retailers. This is the revolution retailers have been asking for for years. Now the technology is here to help make it happen.
What is the market size of your product and what are your main customers?
it’s huge. After all, our solution can accommodate any business that processes payments. It’s a blue ocean of opportunity. However, at this stage of our company, we decided to focus on the world’s largest US market, generating over $2 billion annually and growing all the time. We are currently focusing on a few specific segments where we see great demand for our solutions: retailers (fashion, wholesale, department stores, convenience stores, etc.) and education (colleges and universities). Both segments serve relevant demographics and have a strong presence of early adopters who are ideal audiences for our technology. From there, it plans to grow and expand into other regions and segments such as hospitality, entertainment and automotive.
Does the product already exist? If not, what stage is it in and when is it expected to hit the market?
Our products are in operation in Israel and the United States, with dozens of retailers such as Kith, Emporio, Town Shop, Ramsey Outdoor, as well as ECPI University with its 22 campuses, Berkeley College, University of Washington, and more. After completing his POC in Israel last year with great success, he decided to expand in the US in early 2022. We recently entered into strategic partnerships with large platforms and providers such as PayPal, Venmo, Klarna, Sezle, Splitit, BitPay and Trustly. We are currently working to expand our solutions in this market through these channels.
Who are the main competitors in this space and how big are they?
Our main competitors are traditional payment methods such as credit and debit cards. Of course they’re not going to disappear tomorrow morning so we’re supporting them as part of our portfolio, but we’re agnostic to any form of payment so we’re giving retailers the traditional world and the new world of payments. can provide both.
What added value does the founder bring to the company and product?
Moty has over 10 years of experience in the fintech world as a manager and entrepreneur. Chen and Nir hail from the banking industry and led the development of his Bit app for Bank Hapoalim. We are all familiar with fintech, we understand payments, and we have witnessed the pain retailers and shoppers experience when it comes to the checkout experience and payment process.
What will the money earned in the round be used for?
The seed round will allow us to further develop and expand our products, but is primarily intended to support our business operations in North America, grow and expand our products, and reach this market.