Qiandaibao, a mobile point-of-sales startup similar to Loop and Square, has raised “hundreds of millions of RMB” from IDG Capital, Banyan Fund, Haitong Securities, and Jiangxi Copper, according to Chinaventure.cn. That means the total funding amount could range anywhere between US$16.3 million to US$163 million.
The Beijing-based startup makes a series of mobile POS solutions, including a smartphone fob that plugs into the headphone jack and can read magnetic strip cards. Qiandaibao, which literally translates to “Purse Treasure,” was founded in 2008. It was one of the first companies in China to obtain a license to operate a third-party payment business in the country.
Qiandaibao is aimed at lower-tier cities with poor payment infrastructure, especially among small businesses. It currently supports bank cards, WeChat payment, Alipay, and some bank apps.
Qiandaibao accounted for 0.3 percent of China’s mobile payment transactions in the second quarter of this year, which amounted to RMB 1.4 trillion (US$228 billion), according to iResearch. Alipay dominates the market, making up nearly 80 percent. PEdaily reports Qiandaibao’s daily transaction volume exceeds RMB 500 million (US$81.4 million) and provides its payment services to over one million small businesses.