Russian Square copycat 2can has secured $400,000 in funding from a new investor, Almaz Capital Partners.

Mobile card acquiring service 2can was officially launched in Russia in September 2012, but founded a year earlier, in November 2011. It offers customers the chance to transform their smartphones running iOS or Android into mobile POS terminals with a special app and a small card reader that connects via a 3.5 mm audio jack.

To attract users to the service, 2can will be offering its card readers for free until the end of January 2013. The service’s fee on each transaction is 2.75% — the same as for its Western counterpart Square.

2can emphasizes that it is the first mobile acquiring service in Russia that is compliant with security requirements by Visa and MasterCard, Cnews reports.

At the seed stage, the company was funded by its founders, Nikolay Zhmurenko and Yuriy Vladimirov, but recently it attracted $1.6 million from InVenture Partners. The total funding 2can has raised to date is $2.3 million.