Payleven have been threatening to release their mobile chip and PIN device for a while. Well, it seems the wait is over as Payleven are now taking orders and will begin shipping the card readers on 18th Feb 2013.
Payleven’s chip and PIN reader is the first card reader to enter the European market which is fully compatible with Visa payment cards. That makes it an appealing proposition for businesses who want to process payments as quickly and securely as possible.
Card Reader Details
- Cost €89/ £89
- Fees: 2.75% (flat rate, no limit)
- Min transaction €1
- Accepts Visa and Mastercard (not American Express)
- Compatible with iOS (Apple) and Android smartphones or tablets
- Available: UK, Germany, Italy, The Netherlands and Poland
- Technology: Bluetooth
The card reader works with an app on the merchant’s smart phone or tablet and connects to the device by Bluetooth. When a payment is ready to be made the amount and product description are displayed on the app. The customer then places their card into the Payleven reader and inputs the PIN. Verification is made using the phone or tablet’s signal and a receipt is sent to the customer by email. Funds are deposited in the merchant’s bank account a few days later.
Payleven is a startup which was founded in March 2012 and is funded by Rocket internet. In Jan 2013 they received several million $ for the launch of their chip and PIN reader. The company is the brainchild of the Sawmer brothers who have a track record of mirroring successful American e-commerce solutions then selling them on to the American companies. The Payleven solution is based on Square, though the technology is different with Square using ‘swipe and sign’ readers which are common in the US.
The fact that the Payleven device accepts both Mastercard and Visa sets is apart from the current offerings from iZettle and Sumup. At present to process a Visa card with iZettle or Sumup the customer needs to verify card details on their own mobile phone. The reason for this is because Visa are not happy with the level of safety provided by ‘chip and sign’ mobile card readers. The added verification means that Visa payments can only be processed for customers who have a smartphone and it also takes longer.
Sumup, iZettle and mPowa are currently working on mobile chip and PIN solutions. Check back for updates, as soon as I hear anything you will be the first to know.
For further info on this story Techcrunch wrote a good piece: Techcrunch Payleven article
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