Paris-based startup Lydia, on its way to becoming a leader in French mobile payments, has raised a $16.1 million round of funding to become the next PayPal in mobile payments.

While a lofty goal, Lydia has demonstrated impressive growth in 2017, processing about a million transactions a month, it told TechCrunch. It has over a million registered users on its platform, and more than 2,000 new users sign up per day, the startup said.

Lydia uses P2P payments to allow users to pay back friends and contacts with no fees. The startup then allows those users to make payments via Lydia in retail and online stores.

Merchants who accept Lydia in mobile form simply scan the QR code a customer presents in store: customers can use either their linked bank account or their Lydia balance to pay.  Meanwhile, merchants who don’t yet accept Lydia can pay with a plastic card, which also allows users to pay with their Lydia balance or personal IBAN.

Additionally, the company has expanded to countries outside of its native France, including the United Kingdom, Ireland, Spain, and Portugal. The company is planning to open in Germany and Austria next.

The leaders in the funding round was CNP Assurances, with existing investors such as New Alpha AM and Groupe Duval also participating in the round.

Read more at TechCrunch and PYMNTs.

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