Saudi-based FinTech EdfaPay has raised 6m SAR, which accounts to almost $1.6m, in its latest funding round. The pre-seed investment was led by Nuwa Capital, InspireUs VC and Wallan Investment Group.

The company has built a softPOS system, which allows any merchant to accept payments using their smartphones as opposed to a traditional POS system.

“The Saudi market is at an inflection point when it comes to financial services. While there is a tangible move towards digitizing payments, merchants are still faced with a lot of friction and costs incurred by setting up payment solutions. We are tapping into an opportunity that has remained largely underserved, while allowing our customers to focus on what they do best,” Ghormallah Alghamdi, CEO at EdfaPay, said.

The company was founded this year by Ghormallah AlGhamdi, Nedal Sabahi Nedal and Veysel Baydogan. EdfaPay’s softPOS solution allows merchants to reduce the capital costs and technical hurdles associated when setting up their payment solutions. It also allows them to expand their reach in accepting card payments in locations where legacy solutions cannot be deployed, such as in direct sales, small stores, food delivery agents, sales agents, bazar shacks, and much more.

“Improving digital payment accessibility is key to unlocking scale in many businesses, the company is spearheaded by three founders that we have deep belief in. EdfaPay is going after the opportunity to cut cost and avoid technical hurdles for small-scale business and smoothly plug into digitized payments,” Kholoud Almohammadi, Venture Partner at Nuwa Capital, said.

The company has also developed a suite of tools to help merchants access additional data post-payment. For example, merchants can now access transactional and historical data via a dashboard, which also allows them to manage user access across branches and stores.