Pago Mobile has launched a mobile-based payments service with 53 participating merchant locations in Mountain View, CA. The service is intended to bring together loyalty programs and Groupon-like offers at the point of sale. To utilize the service, consumers place and pay for orders on the mobile app while merchants use an iPad to receive orders, accept payments, and manage their loyalty programs.
“This is the hottest space, but I’ll tell you what: There’s a lot of players, and yet, no one has figured it out,” [Pago Mobile founder Leo] Rocco said. “There’s a battle of ideas from Visa, MasterCard, American Express, PayPal and Google on how do you make payments on the phone ubiquitous.”
Although they are currently offering merchants lower, introductory rates, Pago ultimately expects to charge merchants 5 percent for all transactions, which will include credit card fees.