Italys Jusp Raises $6m for Mobile Chip and Pin Reader

Yet another mPOS company says it is ready to launch a mobile card reader and app combo in Europe after Italian start-up Jusp closed a $6m (£3.9m) first round funding deal.

Founded in November 2011 by two twenty-five year olds, the pair have opted to use the headphone jack to connect the chip and pin machine to the handset, rather than bluetooth, much like established US company Square but unlike Jusps European counterparts. This saves on licensing costs paid to Apple. Jusp will launch in Italy and in other European countries – although a date has not been set.

Jusp says it has clearly differentiated from all other European competitors and is the smallest, lightest and cheapest model – costing €39 (£33) as opposed to £49 machines on offer from Payleven and iZettle. Both of these systems charge 2.75 per cent per transaction, while Jusp creeps under at 2.7 per cent. The company does not outline any other charges – which are unlikely as other providers have opted to keep costs to a miniumum.

The deal is one of the biggest first rounds ever achieved in Italy and was led by Principia Sgr, with Vertis Sgr and a number of angel investors who led the initial $700,000 seed round last year. They are: Stefano Calderano (previously BNP Paribas and Intesa), Paolo Guida (Lehman), Giulio Valiante (Saldi Privati and Jobrapido), Simone Ranucci Brandimarte (Glamoo) and Bruno Spadoni (Setefi).