Bangalore: Mumbai-based Mswipe Technologies, a startup that offers cost effective point-of-sale (PoS) solutions on mobile phones, has raised an undisclosed amount in a first round of funding from Matrix Partners India.

Mswipe which currently employs 40 people enables merchants to ease the process of payment collection through acceptance of debit and credit cards using their mobile phones. In 4 months since going live Mswipe’s POS terminals have been deployed in over 200 cities and towns across India. The company has tied up with Prizm Payment Solutions and Axis Bank to better the card acceptance services to merchants.

Mswipe is possibly part of the seed programme portfolio of Mumbai-based Matrix Partners that it launched last July which targets startups in the Internet and mobile segments. The firm raised a $300 million second India fund in April 2011, taking its total India-dedicated funds under management to $750 million. Some of its deals from 2012 include Twist Mobile, LimeRoad, Mewar Orthopaedic and Enhance Aesthetic.

Other players in the space include MTS, that launched mobile POS device MTS mPOS and Mumbai based self-funded company Mosambee.