What we do: Two Tap lets mobile users skip the cumbersome checkout process on retail websites, instead making purchases directly through the apps they use to find products. The streamlined process means people will buy more—good for app developers and merchants.Why it's a big deal: We are the connected generation. Ordering online - particularly from mobile - is a cumbersome process that requires us to enter our contact and financial information for every new store we visit. That wasted time may be enough to drive away some customers, and it's clear that a better solution is needed to truly streamline online shopping.Enter Two Taps. Users enter their info into Two Taps once, and ordering anything from a retailer that has integrated their API is as simple as two taps of a smartphone. They've already demonstrated that their service increases mobile sales conversions by 10x. As more retailers adopt this service, Two Taps could become the standard tool used by businesses who want to make online shopping as painless as possible. With that kind of potential impact for enterprise customers, it's no wonder they raised over $2M in their seed round. As the company scales, Two Tap is going to dominate online retail checkouts.
Radu Spineanu Founder @ Two Tap
Last Funded May 2014!
total funds raised
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$2.7M raised in seed round
50x growth in monthly transactions over 6 months
Increases mobile sales conversions by 6x
More than 300 million products available
Consumers can check product availability before purchase
$1,539,000 since our founding
Radu founded ad affiliate network 2performant and built Kinotopic, the first cinemagraph making app featured by Apple.
The company launched earlier this year with the aim to fix mobile checkouts. To do this, it has built what it calls the first automated checkout solution that “allows consumers to buy any product from any retailer on any mobile app or website.”
Two Tap’s record growth and its retailer-approved app developers and publishers prove that its universal shopping cart can rapidly scale to thousands of retailers, a landmark achievement for the e-commerce industry.
If you’ve ever tried to buy anything from your smart phone, chances are you’ve probably quit in the middle of the process—beginning to type in your shipping address then giving up before even entering your credit card. The combination of a small screen, tiny keyboard and long list of fields to fill in is enough to stop any purchase in its tracks.
You aren’t the only quitter. Ninety-eight percent of shopping carts created on mobile platforms are abandoned, says Two Tap co-founder and CEO Razvan Roman. And it isn’t just a problem for frustrated consumers, but also for retailers and app developers whose apps curate and compare products.
“We’re jumping on that opportunity and building this unified checkout process for all merchants,” Roman says. “We strip it down to the essentials.”
By acting as a go-between for users and e-commerce sites, Two Tap aims to cut the long process down to—you guessed it— two steps.
How it works
Two Tap integrates with mobile apps so publishers can sell products directly. Users browsing a product-focused app—think Pinterest, Polyvore and Wanelo—decide to buy, then input their shipping and billing information without leaving the app. Two Tap checks out with the merchant for the user, so shoppers get the same confirmation email they would have had they made the purchase on the retailer’s website themselves. From then on, your payment information is linked to your phone number. The next time you buy something in the app, you just enter your email address and get a text message with a few-digit confirmation code. Type in that code and confirm your purchase with your credit card’s CVV code for security—and you’re done.
“You’re kept within the same app experience and it’s just very convenient for you,” Roman says. “It’s a streamlined process and it doesn’t take you away from your normal experience.”
True Tap is free to use for consumers and merchants. The company makes money by taking a 15 percent cut of the commission app developers get from retailers on purchases sent through their apps.
“[App developers’] main focus is generating that intention to buy within consumers,” Roman says. “But when you want to buy, there’s a disconnect—you have to start an experience with a retailer. What we’re giving app developers is a way to streamline the process and have this last piece of the puzzle that’s currently missing from every app out there that does product-centered publishing.”
Streamlining for three sets of stakeholders
Two computer science grads who met in the online community of their native Romania, CEO Roman and co-founder Radu Spineanu bring experience in affiliate marketing, e-commerce, mobile technology and multiple startups to the project. Though it’s clear how Two Tap benefits consumers, the founders say smart phone shoppers aren’t the only ones with something to gain. App developers are excited that the platform gives them a way to monetize that’s an alternative to the faulty ad model.
“We’re building an API that sits on top of all e-commerce and allows app developers to monetize their users via e-commerce, which actually provides them with a real use case and actually engages their users even more in their apps,” Spineanu says. “It’s a completely new revenue [stream] for mobile—one that is probably going to change everything.”
Two Tap has more than 100 app developers, each with at least 500,000 users, interested in signing up, according to the founders. Kiip, a reward-based network app integrated with Two Tap, is seeing between 40 and 150 percent increase in conversion.
Retailers stand to see large increases in sales, even though they don’t need to do anything to integrate the platform, Roman says. While Google Wallet and similar competitors require deep integration within merchant sites, Two Tap works with a store’s chosen payment processor and sits on top of the existing technology stack.
Two Tap has developed innovative tools that allow them to integrate with thousands of stores and keep up with changes to their websites—without an army of programmers.
“Instead of hiring a very expensive programmer that costs like 150k per year and would go and look in the file and try to fix the script, we’ve created a system where people can use our tools to fix those issues,” Spineanu says. “And these people are non-programmers. So we’re able to solve all those issues at a fraction of the cost.”
Can the Two Tap platform be used for non mobile apps?
Two Tap can work seamlessly outside of mobile, it works on any platform in any app. As long as the consumer has their wallet stored with us, they can retrieve that wallet with a few digit confirmation via SMS and make purchases anywhere.
Do you place the order with the merchant in your name or the customers?
We really have to play nice with everyone in the market by being responsible and not losing any data as we represent them. The merchant sees the same standard data from the consumer and the consumer has the same relationship with the merchant. We place the order in the customers name and mirror the usual experience. The customer gets the same confirmation email, the same details in regards to product returns, and the same customer service. We merely streamline the process, and take it down to two steps.
Are merchants opposed to this?
The main problem for existing wallets out there, Google Wallet and Paypal for example is they require a deep integration. We don’t cost a retailer anything by sitting on top of their existing payment processor. All the effort is in our court, they have to do nothing to integrate. They merely let us expose their inventory to all app developers out there.
What makes you better than other digital wallet?
Our thesis - the basis of our company is that while we’re building this platform is we want every party involved to have as little technical input as possible. Currently merchants must choose from competitors like Amazon, Google Wallet, and Paypal and then integrate these checkout applications deep into their platforms. We avoid that headache by building an umbrella that sits effortlessly on top of all ecommerce.
What do merchants need to do to integrate with you?
How does the integration process differ from how app dev’s currently do affiliate sales?
Currently app developers put up a link to the merchant website, which is enriched with the affiliate tags, and campaign ID. To use Two Tap, all they need to do is take that link and pass it through us. Our API identifies a cart by the product link alone.
Instead of pointing the URL to the merchant website, they merely point it to our API which takes that URL, interprets it and opens the cart. This fixes a number of problems. On the affiliate side we eliminate fraud by attributing the sale instantly as opposed to dropping a cookie. We’ve also built a global shopping cart allowing the consumer to buy multiple things from multiple retailers with the same shopping cart in just two steps. Affiliates can now push items from multiple retailers allowing the consumer to order all items at the same time. All of this was never possible before.
Can app developers allow consumers to checkout from multiple retailers in one shopping cart?
We’ve built a global shopping cart allowing the consumer to buy multiple things from multiple retailers with the same checkout in just two steps. Affiliates can now push items from multiple retailers allowing the consumer to order all items at the same time. All of this was never possible before.
Who is your competition?
There are companies that have tried to do this on a per integration basis. Cosmic Cart and 72Lux are two examples that come to mind who went after big publishing companies. But other competitors include anyone that make shopping easier for consumers. As for direct competitors it’s mostly internal tools, and other wallets which are becoming less and less significant unlike them we never charge the consumer and seamlessly integrate for free with merchants.
How do you make money?
We make money by taking a commission from the app developers using Two Tap. App developers typically take between 5%-15% depending on what they’re selling. We take 15% cut of this commission.
What's your biggest challenge moving forward?
Our biggest challenge is having all our app developers, everyone who integrates us, on the same page in the regards to best integration practices. This includes communicating to the user, the best experience for the user, and eliminating confusion around how Two Tap works. Generally we need app developers to provide a user experience we are happy with. Thankfully we can gather a lot of data of what works, and use this to continually optimize our process and our integration with app developers.
What interesting things can you do with your data?
We’re able to sit across many different apps, and are able to gather data from all of our integrations allowing us a high level view of what works and what doesn’t. It’s not just being able to see what works as an app developer, but it also enables us to provide all kinds of data for merchants. We can see the entire e-commerce process and help all players optimize their sales and user experience.
What kind of apps are using you?
Our users are any apps that have an e-commerce layer to them, either by showcasing products or having consumers interact with their products and then generating that intention to buy. There are also many other engines of growth, for instance integrating Two Tap into a browser might allow the consumer to check out in two steps on any site.
Who is your sweet spot customer and how many do you have?
We have over one hundred app developers that have all been vetted, all with at least 500,000 users. It’s not the small app developer that is coming after us, our sweet spot is the medium to large size app developer with payroll that is actively looking for revenue.
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