In a bid to help retailers in the US reduce transaction fees, PayStand has released a mobile point of sale (mPOS) solution based on a flat monthly subscription instead of a complex fee structure.
Currently available only on iPhones, the mobile app is offered as an extension of PayStand's online platform. The app enables merchants to accept credit card, cheques and Bitcoin payments at brick-and-mortar locations or out in the field, said PayStand.
To accept credit card payments, merchants will need to swipe the credit card on a card reader, which fits in the audio jack of the iPhone, while the PayStand mobile app is open.
For cheque payments, merchants will only need to take a photo of the cheque through the mobile app before the amount is transferred from the customer's bank account to the merchant's.
Bitcoin payments, on the other hand, will require customers to scan the unique QR code from the app to have the funds routed to the merchant's Bitcoin wallet.
"Mobile credit card payments are proliferating at the point of sale, but the fees involved have gotten too expensive for merchants," says PayStand founder and CEO Jeremy Almond. "With our mobile app, PayStand is bringing the same ease-of-use, flexibility and cost-savings to retailers at the point of sale as we provide for online merchants. We're giving merchants a single dashboard for managing all their payments, and a path to zero transaction fees," he added.
Lowering fees through community
Launched almost a year ago, PayStand operates under a Payments-as-a-Service business model, and aims to provide merchants with the lowest possible credit card rates and alternative zero-percent payment options.
As its customer base grows, PayStand is negotiating progressively lower credit card rates, which are automatically passed on to customers in a process they call rate sourcing.
In the past 12 months, PayStand has lowered its credit card rate four times, with the current rate being 2.49 percent for Visa, MasterCard and American Express cards. According to Almond, the company is planning for another decrease in the second quarter of 2015 by "leveraging the power of community." "In the past it's been the big banks and credit card processors who have dictated fees, but by empowering merchants to join together, we're starting to turn the tables on the old system," he said.
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