ToneTag, a startup which provides services to users to make mobile payments via both smart and not-so-smart (i.e. feature phones), has raised a $1 million funding from Reliance’s venture fund arm, Reliance Capital. The company specializes in contactless mobile payments based on proximity, which the company provides on any device regardless of its hardware or software drawbacks.
ToneTag allows users to make mobile payments using any one of two methods: soundwaves(Tone) preferred on feature phones or NFC (Tag) mainly available for smartphones. The fact remains that with both methods utilizing what you already have, ToneTag does not require the user/merchant to make any hardware/software upgrades thus nullifying any chances of additional investments needed.
Depending upon user device and retail pos hardware, mobile application can toggle to initiate instore purchases using sound or NFC. The tech, which is patent pending, could prove to be an asset in emergin markets like India, where over 90% of mobile owners continue to work with phones not equipped with NFC.
It works on any mobile device and no internet is required on user device at time of initiatingpayment. The sdk can be integrated to any existing mobile application. ToneTag in conjunction with tokenization can service accounts and digital payments securely Based on use case a Card on file, Wallet or Card present contactless transactions can be enabled.
To provide the highest security and privacy, your details are not even stored by your phone. Even when you make payments, ToneTag sends a token in place of your account information. Also, the service uses a multilayer encryption technique for any transaction you initiate, making every small task as safe as it could be.
Additionally, after you have added your banking cards, account details or, as the service allows, any other m-wallet or m-banking information, and by any chance you lose your phone, you do not need to worry. You don’t even need to block your phone. Just make a call to ToneTag support within 24 hours and they will reset your account so that no one can use it.
ToneTag has many partners like MobiKwik, YesBank, PayU and Ezetap which help make the service more user friendly and consistent.
Apparently, the latest capital raised by the company will be utilized to hire technical, sales and marketing resources as well as to market the service to users and on-board merchants.