Russian local service startup Pay-Z has just launched a “pay by app” solution for shopping aficionados to avoid standing in queues.
Pay-Z users may scan barcodes of the chosen goods, which automatically adds them to an online cart. Customers will settle their purchase through a special terminal by a check-out lane, or directly through the app.
The company already partners with several retail chains, which aim to shorten queues, increase their sales and customer loyalty. The startups claims that its service can be deployed in a new outlet in just three weeks with all the necessary equipment and no initial investment for the installation of the scanners or the self-checkout lanes.
Pay-Z generates its revenue by charging a percentage on the transactions made through the app and by leasing its equipment installed in the shops.
The Internet Initiatives Development Fund (IIDF, or FRII in Russian) has just invested 20 million rubles (around $316,000 at the current exchange rate) in the startup. This fund — Russia’s biggest one for early-stage startups — had already put 2.5 million rubles (almost $40,000) in Pay-Z. It has now increased its stake to 24%.
“A self-checkout app is a breakthrough solution for retail not only in Russia, but abroad as well. The clients of the startup are retail chains with overcrowded checkout lanes. The big advantage of the technology is a quick launch even in major shops with minimal necessary investment,” commented Arman Ayriyan, an investment analyst at the IIDF.
“According to our estimates, the market for this startup exceeds 10 billion rubles (nearly $160 million) in Russia,” he added.
Source: IIDF
