Hong Kong-based payment firm BBPOS has closed an $8 million funding round by a local investment firm, the company said in a statement.
It, however, did not disclose the name of the investor.
While a part of the funding will be used by BBPOS to spruce up delivery of its point-of-sale (POS) solutions for global enterprise merchants, the other part will be used to expand its comprehensive merchant services to the rapidly growing SME network in its key Asian markets.
The company said these dual engines of growth will help strengthen its recurring, transaction-driven revenue stream going forward.
Founded in 2008, BBPOS provides over 3 million POS terminals annually to over 50 countries and claims to have invented the world’s first mobile POS.
“Through our innovations over the years, we had been consistently awarded significant POS hardware sales contracts from some of the largest payment services companies such as MercadoLibre, MSwipe and Stripe, that fuelled BBPOS’ strong year-on-year revenue growth historically and foreseeable future,” said Ben Lo, founder and CTO of BBPOS.
Lo added that there is great potential for orders and revenue in the enterprise merchant segment wherein global retail chains face increasing pressure for operational efficiency.
The company reportedly won a recent contract from a major global retail chain to design an all-in-one mPOS and a device management software system that combines payment and inventory management functions, which allows it to both realise hardware sales and substantial recurring software licensing and specialised hardware maintenance revenue.
“We are currently in active discussions with a number of global enterprise merchants in the retail and shipping/logistics sector to replicate this business model,” said Lo.
BBPOS has also ramped up the business of its BBPOS Merchant Services (BBPOS MSL) subsidiary, which currently serves more than 1,100 merchants mainly in Hong Kong and is expanding to the rest of Asia and Europe. The unit has seen a 12 per cent month-on-month growth in gross payment volume (GPV) since its launch in 2018, and is expected to process over $120 million GPV for 2019.
BBPOS recorded revenue of $43 million in 2018.
“We have recently become authorised payment facilitator for Visa, Mastercard and China UnionPay, allowing more efficient onboarding of BBPOS MSL merchant customers. We have been working with a major card scheme to roll out the region’s first and transformational ‘soft terminal’ on phone – more details to be shared upon launch late this year,” said Alex Choi, CEO of BBPOS MSL.
The subsidiary is in talks to bring its merchant services to Europe through a partnership with a major European bank.