Payment platform PayStand, has launched on the App Store as the first all-in-one mPOS solution to enable credit card, check and Bitcoin payments to allow merchants accept payments on their iPhones at brick-and-mortar locations and out in the field, giving them significantly lower transaction rates than existing POS systems.
The firm says it’s ofering its PayStand mobile app as an extension of its Payments-as-a-Service platform. The service is only available in the US for now.
PayStand founder and CEO Jeremy Almond said, “Mobile credit card payments are proliferating at the point of sale, but the fees involved have gotten too expensive for merchants,” says . “Why should credit card processors take such a big cut off the top of a business’ revenues? By offering alternative payment options like check capture and Bitcoin which are zero-percent, we’re taking a big step toward our goal of eliminating merchant transaction fees.”
Free card reader and photo check capture
The PayStand mobile app enables credit card payments via a card reader that fits in the audio jack of the iPhone. Merchants can swipe customers’ Visa, Mastercard or American Express cards, or offer one of the app’s alternative payment methods. To process a check payment, the merchant simply takes a photo of the paper check, directly debiting the consumer’s bank account without any trips to the bank. To accept Bitcoin, the app displays a unique QR code which the consumer scans to pay with the funds routed to the merchant’s Bitcoin wallet.
“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,” said Jeremy Almond, CEO, PayStand. “We’re giving merchants a single dashboard for managing all their payments, and a path to zero transaction fees.”
Lower fees through community and choice
PayStand launched almost a year ago with a Payments-as-a-Service business model which for a flat monthly subscription gives merchants all the tools they need to accept credit cards, eChecks and Bitcoin directly on their websites and social media pages. Unlike other payment processors, PayStand does not mark up transaction fees, but rather aims to give subscribers the lowest possible credit card rates and alternative zero-percent payment options. As the PayStand subscriber base grows, the company is negotiating progressively lower credit card rates which are automatically passed on to customers in a process they call “rate sourcing.”
PayStand has lowered its credit card rate (currently at 2.49% for Visa/MC/AmEx) four times in the past twelve months, and is planning another drop in Q2 2015. “We leverage the power of community to drive down costs for our merchants,” says Almond. “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.”
The free app is currently available on the App Store and the PayStand card reader is shipped on request. Merchants must first create a PayStand account on their website to accept payments with the app.