VC for Unbanked Technology Invests in Wipit

Core Innovation Capital, the investment partner of the Center for Financial Services Innovation (CFSI), has made an investment in Wipit Inc., a mobile payments company focused on unbanked consumers.

The investment will be used to develop Wipit's mobile technology. CFSI invests in financial technology that’s aimed at providing financial services to the unbanked and underbanked segments. Arjan Schutte, Core’s managing partner, will join Wipit’s board of directors.

“Wipit has the potential to deliver a breakthrough mobile financial offering that will significantly change the lives of underbanked customers around the world,” said Schutte in a Sept. 11 press release.

Wipit, which has offered mobile payments since 2011, enables underbanked consumers from around the world to use cash for payments on their mobile phone or with an integrated prepaid card. The company also provides access to alternative financial services such as international money transfers, mobile check deposits, bill payments and prepaid wireless replenishment. These services are accessible by a mobile phone and payable with funds loaded to the user’s Wipit-powered mobile wallet account.

Wipit’s co-branded Boost Mobile Wallet program, a partnership with Sprint, extends the company’s mobile financial services lineup to millions of underbanked prepaid wireless subscribers. Previous investors include H&R Block and Euronet Worldwide.

“Wipit is opening the world of digital payments to anyone with a mobile phone — even those without a bank account,” said Richard Kang, CEO of Wipit, in a press release. “Smartphone adoption in the prepaid wireless market is rapidly growing, and we provide a needed payment service for consumers who have purchased a smartphone, but have no bank account or credit card to fund digital transactions”