Boarding Pass
Born out of Covid, Paytag wants to change how we shop in-store
With $2 million raised from angel investors alone, Israeli startup Paytag is setting out to eliminate one of in-store retail’s greatest friction points: the checkout line.
“There’s a saying I always stick to: If a 60-year-old woman and a 15-year-old girl go through the exact same shopping experience something is wrong,” explains Barak Amtanani, CEO of Paytag.
“We have a generation that expects speed and screens, yet we still force them to stand in line.”
Founded in 2022 by Barak Amtanani and Ori Levy, Israeli retail tech startup Paytag is looking to revolutonize the checkout line with a system that combines app-enabled payment, self-checkout, and a smart physical tag-removal device.
You can learn more about the company below.
Company Name: Paytag
Sector: Retail
Product/Service description:
Paytag is an Israeli retail-tech company focused on eliminating one of the biggest friction points in the in-store shopping experience: the checkout line.
Founded in 2021, the company has developed a tech solution that combines an app-enabling payment from anywhere in the store without going through a checkout counter: a self-checkout system based on RFID technology, a smart physical tag-removal device that unlocks only after payment (a globally registered patent), and smart fitting rooms. Together, these components allow customers to select products, add them to a digital shopping cart, and complete payment without waiting in line or interacting with a cashier.
In Paytag’s model, the customer scans the tag attached to a garment using their smartphone, receives product information, and adds the item to their cart within the app. After completing the payment, the customer approaches a dedicated self-checkout station, removes the tags, and exits the store smoothly and without triggering alarms. In addition, the company offers complementary solutions such as RFID gates for theft monitoring, fast checkout without scanning items one-by-one, and smart fitting rooms.
The company works with fashion retailers and ERP providers, and its product is already in commercial use in Israel, with ambitions for global expansion.
Founder Bios:
Barak Amtanani - Prior to founding Paytag with Ori Levy, Amtanani established a point-of-sale advertising company with Levy, where they led campaigns worth hundreds of thousands of shekels for some of Israel’s largest brands. Before that, he was involved in various entrepreneurial ventures, selling real estate, providing business consulting, and leading commercial projects. Entrepreneurship has always been at the core of his career, with a natural ability to sell, market, and build businesses, without being confined to a single track. After Paytag was conceived, his full focus shifted to the company, and all efforts have since been dedicated exclusively to its growth.
Ori Levy - Levy immigrated from the U.S to Israel at the age of 18. First collaborating with Amtanani at a company that developed innovative LED signage solutions for small businesses (a kind of smart projection system), the two of them then worked together on the advertising company. Until Paytag raised its initial funding, he worked as a salaried employee while Amtanani led the fundraising process. Once the company secured investment and reached a level of stability that could support both of them, Levy joined Paytag full-time.
Year of Founding: 2022
Last Investment Round: $2 million
Last Investment Stage: Seed
Date of Last Investment: 02/01/2024
Total investment to date: $2 million
Investors: Angels
Current number of employees: 8
How was the idea born?
The idea was born during the first COVID lockdown. Co-founder Ori Levy and I (Amtanani) were driving when we saw a news segment about Google Pay and Apple Pay entering Israel. Later, there was another report saying people would no longer need to pay with the Rav-Kav card on buses, and that everything would work with NFC technology. At the same time, we noticed how uncomfortable many shoppers felt with store staff hovering around them. People want personal space, and generally speaking, the younger generations are glued to their phones and deeply connected to technology.
So in a casual conversation, I said to Ori: “What if we put a chip inside a clothing security tag, so you could just tap it to pay? The item pops up on your screen, you pay, and then you go home?” Back then, Ori and I ran a marketing agency working with major brands. Once we started talking about this idea, we did some market research and realized we were onto something. We decided to sell our agency and move on.
Paytag actually started as a consumer app, we even filed a patent, but when we tried to introduce it to the market, we realized we were ahead of our time. Then came another COVID wave, and during that period we added kiosk and self-checkout technologies to the company – something the market already knew and adopted more easily, and integrated Paytag’s patented technology into it. Today, you can put everything in a bin, pay, and the tags deactivate.
These kinds of systems already exist in stores like UNIQLO and Zara, where the companies develop them in-house, and so the market is no longer afraid of this type of transformation. We decided to build our version but with our own approach including smart tag detachment.
The startup advisory and acceleration firm Weccelerate accompanied Paytag from the idea stage, helping to develop a full business plan. Today, Weccelerate is a partner in the company and continues to support its growth.
What is the need for the product?
Paytag’S solution addresses two key challenges: labor shortages and a consumer base that demands a fast, independent, and digital shopping experience. The primary need is reducing labor costs and even when that’s not an issue, improving efficiency. No more lines, faster processes, and a more innovative experience.
How is it changing the market?
There’s a saying I always stick to: If a 60-year-old woman and a 15-year-old girl go through the exact same shopping experience something is wrong. We have a generation that expects speed and screens, yet we still force them to stand in line. With Paytag, you can simply walk to a self-checkout and finish the process quickly and seamlessly, in a way that fits today’s consumer expectations.
How big is the market for the product and who are its main customers?
The market is huge. Any retail chain that respects its customers and cares about maintaining innovation, convenience, and strong user experience will be there very soon. We're going to see these systems everywhere. There won’t be a store that doesn’t use them.
We are targeting international markets as well. We’ll soon be attending a major NRF conference and are already in negotiations with several global companies. Our customers are ERP companies, and the retail chains themselves. We work with several point-of-sale companies in Israel, as well as with leading fashion brand, Renoir.
Does the product exist already? If not - at what stage is it and when is it expected to hit the market?
The product exists and is already in use even in the ultra-Orthodox sector, in their largest retail chain, Kidisheek.
Who are the main competitors in this sector and how big are they?
There are competitors, but it’s not exactly a direct comparison. In our market, large companies typically provide end-to-end inventory management solutions, but they focus less on the retail front-end self-checkout, payment apps, and the customer-facing experience which is where our specialization lies.
What is the added value that the founders bring to the company and the product?
At the end of the day, hunger and persistence are what determine success. The founders have both. When this is your ‘baby’, you learn everything about the industry, you work 24/7, and whether times are easy or hard you never stop.
What will the money coming in from the round be used for?
First and foremost, for ongoing operations and scaling production. In addition, we are constantly developing and improving performance. We also just moved into a new office. The company has production lines ready, so everything is set.
In the "Startup Boarding Pass" section, CTech will cover the (relatively) small investments made in companies during the early stages of their existence - and the entrepreneurs and startups who have not yet had the opportunity to reveal their stories to the world. Please use the linked form and fill it out according to the guidelines. This form is intended for startups raising between $500,000 and $3 million from venture capital funds, angels, or official grants from Israeli and foreign institutions. If relevant, someone at CTech will be in touch for follow-up questions.
First published: 09:49, 21.01.26
