Burlington, Mass.-based mobile payments startup Loop raised $3 million in debt funding on Monday, according to a regulatory filing dated July 11.
The raise is part of the company’s planned $12 million fundraising round, according to the filing. Last week, Synchrony Financial (formerly GE Capital Retail Finance) announced that it had made a strategic investment in Loop.
In November 2013, Loop pocketed $10 million in Series A. Around that same time, the company also ran a Kickstarter, and ultimately raised more than $123,000, far surpassing its goal of $100,0000.
Loop lets people purchase directly from merchants using credit, gift and rewards card information stored on their smartphone. The LoopPay app can also track and organize the spending on each card, enabling users to better keep tabs on their accounts. Because of its Magnetic Secure Transmission technology that works directly with magnetic stripe card readers already in place at many stores, Loop requires no special equipment, and claims that it works in 90 percent of restaurants and shops.
Loop also offers a key fob that enables users to pay without their smartphone with the press of a button. The company recently launched a LoopPay charge case that provides an extra punch of battery power for the iPhone 5 and 5S.
Though the company declined to comment, it seems like the funding will likely go to building out Loop’s team. The 35-person startup recently moved from Woburn to a 10,000 square-foot spot in Burlington. Loop CEO Will Graylin said in a statement to the Boston Business Journal that the team plans to nearly double the company’s headcount by the end of 2014.
Image via Loop
