ToneTag Picks Up $1.33 Million in New Funding

January 16, 2024         By: Steven Anderson

Investment in the mobile payments space is still a pretty big deal, as there are a surprising number of firms still just getting started. In fact, if you look at it a certain way, a lot of the mobile payments market is still “just getting started.” Apple Pay’s only been around for just over three years. Naffa Innovations’ ToneTag system, meanwhile, recently picked up some fresh funding of its own, to the tune of $1.33 million US.

The cash in question was picked up from an “overseas investor,” reports note, and one not specifically named. This suggests that previous investors like Reliance Venture Asset Management or Nasscom foundation trustee Arun Seth weren’t involved in this particular investment. In fact, it’s not immediately clear whether this was part of a specific funding round, or if this was just a one-shot deal from someone who wanted in on ToneTag.

It’s not out of line to see so much interest in ToneTag; the concept is sufficiently noteworthy to draw plenty of interest. Essentially, it allows for mobile payments without immediate access to the internet, and works for not only smartphones, but also straight feature phones.

The software involved in ToneTag’s use has connections at the point of sale and in customer wallet functions, so it helps ensure maximum compatibility by controlling every point of interaction. Though there is software involved, reports suggest that the software runs on most current hardware, so there won’t be a lot of capital investment involved to put ToneTag to work. Reports suggest ToneTag is workable for not only ATMs, but also at tollbooths, parking structures, and even at rail ticket counters, which could make it huge in the public works sector.

It’s effectively a mobile payments system for places that really don’t have the infrastructure for mobile payments, but want them anyway. Since ToneTag works with feature phones, that ensures that most anyone who can pony up the comparatively minimal investment a feature phone requires can get access to mobile payments. That improves the chances of overall use, and when merchants can offer customers more options, it tends to draw in more customers and improve business.

With all that working for it, it’s pretty easy to see why ToneTag’s drawing investors, even now.