UK, Russian payment startups partner in $9m investment in payment wearables

Visual from TEDIPAY website.

Russia’s payment solution provider CardsMobile has teamed up with London-based mobile transaction company TEDIPAY (UK) Ltd in a $9 million deal to create an open wearables platform for secure contactless payments, mass transit and access control, in the UK.

The two startups announced the partnership at the UnBound London conference on Tuesday.

TEDIPAY developed the wearables solutions, powered by the same chip as used by Apple Pay. “TEDIPAY delivers the same user experience as Apple Pay, but via open wearables platform,” said Alexander Peschkoff, CEO of TEDIPAY.

By integrating TEDIPAY’s platform with CardsMobile’s MasterCard-certificated service, it allows TEDIPAY to bring into the mainstream such use cases as bank card aggregation, mass transit, IT security and access control.

The combination will enable TEDIPAY to “further enhance their value proposition and to create unique compelling ecosystem for major global players in the fields of mobile payments, transit ticketing, and online security,” said Kirill Gorynya, CEO of CardsMobile.

In addition to NFC (Near Field Communication) interface, TEDIPAY’s secure wearables platform also features Bluetooth Low Energy for seamless integration with any smartphone.

TEDIPAY, which stands for Trusted Element Device for Innovative Payments, was acquired by UK travel startup Global Travel Ventures in December 2014. Its collaborative project, smart transit ticketing solution for public transport MultiPass, is funded with over 1 million pounds. Another portfolio product is MAGIC, a retail solution that integrates payments, loyalty, coupons and receipts into a seamless user experience.

Its Russian partner, a resident company of the Skolkovo innovation incubator, recently launched a mobile wallet application for Android OS that allows to issue MasterCard contactless bank cards, transport cards and mobile coupons. The app is also available on Google Play. Currently, its investor is i-Free Ventures.

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