ZooZ, a consumer-driven payment platform startup, announced today that it has closed a Series A funding round for $2 million. The investment round was led by XSeed Capital, and includes ZooZ’s existing investors lool ventures and Rhodium, both of which also contributed to ZooZ’s seed round.
In a statement, Robert Siegel, the general partner of XSeed Capital, said “Our investment in ZooZ highlights the confidence we have in [founder Oren Levy] and his team and their vision to optimize and transform the entire checkout experience.”
ZooZ has now raised total funding of $3.5 million. The company will use its Series A funds to add new product functionality, increase traction with retailers, solidify new partnerships, and build its presence in the global payments market.
If all things go according to ZooZ’s plans, the startup will benefit from the rapidly growing mobile payments market, which Forrester predicts will see $90 billion spent in 2017, a 48 percent compounded annual growth rate over the $12.8 billion that was spent in 2012. The startup is currently based in Israel, but the founding team has plans to split operations, with some staffers relocating to an office in the U.S.
Founded in 2010 to tap into the mobile payments market, Zooz differentiates its services by focusing on creating a consumer checkout experience to ensure better conversion for retailers and developers while emphasizing security and fraud prevention (ZooZ’s CTO and co-founder Ronen Morecki was formerly a vice president of R&D at VeriSign).
The startup says that its user-friendly checkout platform helps prevent cart abandonment by frustrated mobile shoppers. Last June, the startup also teamed up with MobiCart, a platform that allows users to create m-commerce applications on iOS and Android. That partnership introduced ZooZ’s services to 10,000 merchants. The in-app SDK currently supports iOS, Android and HTML5, which the startup added last year. More information for developers is available here.