Yoyo Wallet, the UK mobile payments application, has collected £12 million from a number of investors. The money will be spent to expand its operations in the European continent and also in the United States. The app is widely used to manage payments in about 1,700 outlets. The Yoyo app permits consumers to make payment for products using their mobile phone. It automatically updates all consumers' loyalty card schemes. Companies prefer this app for tracking customer behavior. Personalized offers can also be sent to customers via the app.
In good company
The latest fund raising action at Yoyo has the backing of Touchstone Innvations, Imperial College London's venture capital arm. Touchstone is listed in AIM. Yoyo has at present 60 employees and rakes in revenues amounting to tens of millions of UK pounds. Philip Riese, who once worked at the consumer credit cards division of American Express as its president, as the company chairman. The latter is also an investor in the company. The list of other prominent investors include the TransferWise co-founder, Taavet Hinrikus.
The list includes 60 Irish and UK universities. Canteens of corporates like JPMorgan Chase also accepts Yoyo payments. Many retailers like Planet Organic and the Caffe Nero accepts the use of this app.
The fund raising underscores how Brexit has minimal or no effect when it comes to the fintech or financial technology industry in Europe. The wallet company is the fastest growing in Britain processing approximately one million monthly payments from its 400,000 registered users. It was founded in 2013.
Alain Falys, the co-founder of Yoyo and a former Visa employee, said that the company has blended the best features of Tesco Clubcard and Starbucks mobile experience. The privilege accorded by large chains like Tesco and Walmart are democratized for the small boutiques and retailers who subscribe to his business. The company permits its clients to create a profile for every client, adding that customers can venture out and personally communicate with their customers. Banks, in contrast, cannot help in this regard.
Falys believe that the coming Payment Services Directive 2, set by the European Union, will force banks to permit the third party providers of payments to access clients' accounts. This will thus create the requisite opportunity for Yoyo to sidestep the big lenders. Clients would save money when the company will pass the savings advantage to them.