Stealth mobile wallet startup Clinkle, which snaffled up close to $30 million in VC funds with a promise to disrupt payments forever, has launched its much-hyped product to hoots of derision from industry observers.
Founded by 22-year old Lucas Duplan, Clinkle turned Silicon Valley heads in June last year when it announced a $25 million seed funding round before it had even launched its first product.
Although continuing to operate in stealth mode, the company was understood to have developed a prototype application that used high-frequency sound waves to transfer payment signals between mobile devices and merchant terminals.
Instead, Clinkle has launched what appears to be a pre-paid Visa card and an app which can be used to transfer rewards, or 'treats' in Clinkle-speak, to friends. Treats are earned after at least seven swipes of the card - which comes with a long list of cash-loading fees - which can then be transferred to a friend alongside a personalised message and accompanying photo. To collect the promised reward, ie a refund on your last purchase, recipients have to 'spin' the app to see if they win.
The bungled launch - apparently Clinkle was still tweaking its copy before Silicon Valley tech mags got on the case - is par for the course for the young company, which has endured a torrid time of late as staff were laid off or quit and rumours of 'vapourware' began to circulate.