Another mobile payment startup—Tabbedout—is becoming a more serious contender in the mobile payments space, and has just raised another $3.7 million, on top of $2.8 million raised previously, according to TechCrunch. The company allows consumers to pay their tab via smartphone at a network of bars and restaurants in twenty states.
In addition, the company recently announced that Tabbedout is now fully integrated with the POS technology of industry leader MICROS Systems, Inc. (NASDAQ: MCRS). This offering means a larger segment of the hospitality industry across the country can now promote a mobile payment option.
“Tabbedout’s approach marks a radical shift in the mobile payment landscape,” said Michael L. Russo, Chief Technology Officer, MICROS. “We partnered with Tabbedout as the integrated solution to provide our merchants with the peace of mind of security encryption on the back end, coupled with the marketing capabilities and social media integration on the front end.”
Available for free on both iPhone and Android smartphones, the company says its application was built by security experts with ease of use and marketing capabilities in mind. Unlike other mobile payment solutions, Tabbedout allows users to store credit card information directly on their phone, under pass-phrase protection, instead of on host servers. Consumers can open, view and pay their tab at their own pace, and share their social experiences with friends via Facebook, Twitter and Foursquare, all within the application.
Currently, Tabbedout’s payment solution has enabled thousands of mobile payments at a network of restaurants and bars across 20 states in 90 cities. The partnership with MICROS will greatly expand the number of merchants offering the Tabbedout service to patrons.
“Partnering with MICROS enables us to offer unparalleled integration and expand our network of venues, which means more consumers will be able to experience the security and ease of paying with their phone. Mobile payments are a hot topic, but research shows that mobile payment is a reality at only .1% of the overall U.S. retail sales landscape. We are excited to accelerate our growth while helping merchants generate more profit and offering consumers the unique capability to maximize their time with friends rather than anxiously awaiting their check,” said Rick Orr, CEO, of Tabbedout.
How it Works
Once Tabbedout has been downloaded from the iPhone App Store or Android Market, consumers can find locations and open, view and pay tabs. Credit and debit card information is encrypted securely on the user’s phone, not on Tabbedout’s servers. A random secret code is displayed on the screen each time a consumer opens a tab – that’s the only information the consumer needs to provide the server or bartender. Customers can leverage Tabbedout’s integration with top social networks to check-in and let their friends know where they are or to check-out and let them know where they are going next. Receipts can be emailed automatically and customers can even call a local cab using Cabbedout, all from within the app.
The company says merchants experience increased sales, payment security and operations efficiency with the Tabbedout solution embedded in their MICROS POS system. In addition, customers are able to pay on their own time, so restaurants and bars can serve more people, especially during peak hours, and merchants reduce fraud exposure for their patrons by removing the exchange of a physical credit card. Payment information is validated upfront and the POS clearly notifies the staff when a tab is paid.
Source: TechCrunch, Tabbedout