Cake is a free mobile payment app that taps into restaurants and bars electronic Point of Sale (ePOS) system allowing customers to pay without leaving their seats.

Cake’s founder have set about alleviating the hassle of paying the bill at the end of dinner or waiting to settle up a tab by enabling patrons to pay via a few taps on their smartphones.

The app will also allow users to easily split bills and view changes to the bill in real time.

The venture is backed by senior executives of successful eating-out apps toptable.com and Opentable. Founder of toptable.com Karen Hanton MBE, is both an investor and key advisor.

Cake has enjoyed early successes by bringing 20 venues, including the Rum Kitchen and Goat, on board. Cake aims to recruit a total of 500 venues within two years.

This is an ambitious target and one would look towards the struggles payment service Monitise (LON:MONI) have endured as a reason to be cautious.

However, Cake has said that it is maintaining 20% week-on-week revenue growth and will use funds to increase marketing and improve the app.

Cake entered the round of crowdfunding with no existing debt or equity investment and hopes that overfunding on Crowdcube will suffice through 2016, by which time revenues should be enough to support development.

Cake are offering 7.06% equity for the £800,000 target, valuing the company at £11.33 million. If financial forecasts are achieved, Cake will have a Price/Earnings Ratio of 5.12 in 2018, if there is no further dilution.

Such a valuation will leave plenty of upside for investors in a trade sale or IPO. The deal struck by Paypal and Xoom today highlights the potential.