Payleven is expanding its chip-and PIN-based mPOS service beyond its current business customers by allowing individuals to accept card-based payments on their mobile device. The service is already available to the public in the United Kingdom, and will soon be available in other Payleven markets, including Germany, Italy, and Brazil.
Consumers must pay the same rates as merchants to use Payleven, £89 (US$135) to purchase the mPOS terminal and 2.75% of all transactions, but is now allowing both merchants and consumers to sign up electronically, rather than relying on slow-moving paper work.
From The Next Web:
“It is no secret that cashless payment is the future, and the democratisation of card acceptance is a key element in this evolution,” [COO and founder Alston Zecha] said in a statement. “We have solved two long-standing problems faced by the payment industry: designing a simple, instant signup process and empowering individuals as merchants.”
While Mr. Zecha is absolutely correct in his recognition of the consumer demand for cashless P2P payments, he seems to be overestimating its extent. While consumers are interested in cashless payments, they are unlikely to spend £89 just to purchase a device that enables them. In addition, the mPOS “sled” used by the Payleven solution, which wraps around the entire phone as opposed to the dongle used by Square and others, is far too large to be convenient for a consumer to bring it with them to many of the places where P2P payments would be necessary, such as a restaurant or an event with paid admission.
Mobile P2P payments offer a lot of potential for a solution that can offer them inexpensively and conveniently. Unfortunately, Payleven’s solution appears to do neither. While the solution has been very successful in its ability to satisfy the needs of merchants, it seems unlikely to translate as well to those of consumers.
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