Tikpay raises $1.6 million to disrupt “ancient” transport payment systems
Melbourne-based startup tikpay is looking to overhaul how public transport ticketing works. And it just got some more cash to do it.
If public transport payment systems make you go into a rage blackout, we have some good news. Ticketing startup, tikpay, has just announced the closure of a $1.6 million pre-seed funding round for its innovative transport ticketing platform.
The round was led by AfterWork Ventures and Black Nova VC, with participation from Investible, Func Ventures, Metagrove Ventures, and two unnamed “industry insiders”.
According to tikpay, legacy ticketing solutions have historically grappled with outdated technology, proprietary systems and restricted payment options.
Through its cloud-based model, tikpay offers a consolidated system where user information is stored in a back-office account rather than a tangible card.
This means that users can utilise a mixture of fare mediums to tap on and off public transport, such as credit cards, digital wallets or QR codes.
The one-stop platform will allow travellers to set up multiple funding sources as well as join payment groups — such as an employer-paid or family group — and register for concessions. Users are also able to view their travel history.
This fresh cash injection will largely aid the company in launching its disruptive account-based ticketing (ABT) and payment platform. Tikpay also confirmed with SmartCompany that some of the capital will go towards sales execution and building out its in-house tech team.
Tikpay says that its ABT system benefits transport operators, as well as travellers. Cost reduction, unified views of ticketing and payment activities, and a deeper understanding of traveller behaviour are some of the features that the startup says will be beneficial for operators.
Michael Walters, founder and CEO of tikpay, boasts a three-decade-long career in the transport payment domain.
His aspiration for tikpay is to position it as the global frontrunner in transport ticketing and payments.
“Transport ticketing is ancient — full of friction and old technology that discourages travellers and hinders the ability of operators to do much about it,” Walters said.
“Tikpay started with a clean sheet of paper, designing a ticketing and payments platform that will improve the experience for travellers and operators alike. Our solution empowers travellers to seamlessly navigate various transport modes and networks, removing friction and making transport simple.”
Endorsing tikpay’s approach, Alex Khor, co-founder of AfterWork Ventures, commented, “tikpay is building a truly modern ticketing and payment solution that will empower travellers to pay for and use transport however, whenever, and wherever they choose — all while reducing ticketing costs for operators by 40% or more”.
