Two Tap connects app publishers with retailers, enabling shoppers to quickly buy products whenever and wherever they find them—without having to visit the merchant’s web site.
A shopper browsing a product-focused mobile app such as Instagram who wants to purchase a product she stumbles upon often won’t go through the process of navigating to the retailer’s web site, entering all her payment information and making a purchase. And each time a shopper chooses not to take those extra few steps, a retailer loses a sale.
Two Tap is out to help retailers save such sales, and the company has raised $2.7 million to expand.
The funding, from Khosla Ventures, Transmedia Capital, Digital Garage and others, including Joseph Saunders, the former CEO of Visa, will be used for product development, marketing and staff recruiting, Two Tap says.
With Two Tap, consumers visiting mobile apps that don’t sell products directly but that are popular for product discovery can now quickly buy items without leaving the app to check out with a retailer. To use Two Tap, shoppers enter their shipping and billing information and Two Tap connects with the merchant’s site or app for checkout. The merchant keeps all sales data and the shopper gets an e-mail confirmation of her purchase as she normally would if she purchased on the retailer’s site or app.
Two Tap also links a shopper’s payment information and e-mail address with her phone number. The next time she wants to make a purchase via a mobile app from the 215 or so retailers using Two Tap, she enters her e-mail address, receives a text message with a confirmation code. She completes the purchase by entering that code along with the CVV on the back of her payment card.
“You don't even realize it's a checkout,” says Razvan Roman, CEO of Two Tap. “You just select your color, size or product, choose where you want it delivered and that's it. Our mission is to radically simplify online shopping for any product from any retailer on any device.”
Two Tap makes its money by taking a 15% cut of the commission the app receives from the retailer for a sale. “The product pays for itself as the lifts in conversion (when compared with a traditional affiliate link that directs the consumer to a retailer site or app for purchase) are way higher than 15%,” Roman says. He adds most of Two Tap’s mobile app developer clients are seeing conversion rates comparable to desktop. Two Tap is free for retailers.
Along with the funding, Two Tap announced new enhancements, including the ability for shoppers to order multiple products from several retailers in one checkout session.
During the past six months, Two Tap says its number of transactions has grown 5,000%. The number of retailers integrating with Two Tap also more than doubled, Roman says, and the company also has tripled in size since January, growing from five employees to 15.
Retailers using Two Tap include GameStop, No. 54 in the Internet Retailer Top 500 Guide and Kohls, No. 23. App publisher clients include Shopsy and Kiip.
“E-commerce on a whole is missing this big technology piece that can allow consumers to order products anywhere on the web as opposed to just the checkout pages of retailers,” Roman says. “We're removing all arbitrary steps when a consumer wants to buy something.”
Roman says app developers are currently marketing the in-app purchase feature to their consumers. “We're focused on building an elegant B2B solution that's very easy to be adopted by all stakeholders. That puts us in front of millions of users with each publisher or app developer that starts to use Two Tap. We're as big as our network. There's consumer apps that attract tens of millions of users on their platforms. Once integrated with Two Tap we're in front of all those users.”
In July venture capital-funded Keep Holdings took introduced another kind of speedy mobile universal shopping cart called the Keep Shopping app. The Apple iOS app, which debuted June 25, enables consumers to download the app and buy literally anything online with one touch.
August 7, 2014, 10:40 AM By Katie Evans Managing Editor, International Research