Austin-based Tabbedout, a company that offers a free mobile payment app for Android and iPhone platforms, released that the company has garnered $5.75 million in a Series A funding coup. New Enterprise Associates was the largest group in the funding with $3.7 million invested. Other investors include Trellis Partners and angel investors. The total amount raised for investment is $6.5 million to grow the company.
The app stores credit card information on a user’s phone under encryption and not on servers, and allows a person to open a tab on their phone, view it in real-time and pay the tab at anytime. Merchants must have a point-of-sale (POS) system and the service doesn’t require additional hardware. The company targets bars and restaurants specifically and a code is given to a server to use in the POS system at the start of a tab.
Receipts are emailed to users after a tab is closed with at least a minimum tip amount given to the server that is determined by the venue. Tabbedout is in use at 36 venues in Austin.
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