US-based mobile cryptography company V-Key has secured $12m in a series B round featuring Ant Financial Services Group, the operating company of online payment service Alipay.
IPV Capital, the early-stage venture capital firm that led V-Key’s $4m series A round in 2012, also participated.
Alipay, part of China-based online portal Alibaba, handles more than 80 million financial transactions each day. It will seek to benefit from V-Key’s encryption technology, which could make the transactions more secure.
Jason Zhu, head of Alipay;s investment team, said: “V-Key’s all-in-one virtual secure element technology is in line with Alipay’s commitment to creating a safer, more convenient global transaction environment.
“With global mobile payment transactions on the rise, mobile identity and data protection on numerous types of mobile devices and operating systems globally remains paramount, in addition to their ease-of-use and convenience.”