WebProNews

Tag: payment processor

  • Stripe is Now Allowing Businesses to Issue Their Own Credit Cards

    Stripe is Now Allowing Businesses to Issue Their Own Credit Cards

    Stripe has just revealed that it will be offering businesses the capacity to make their own credit cards. The online payments company also announced that they will be using Mastercard and Visa as the operating networks for their new service, aptly called “Stripe Issuing.”

    The company explained that the service is “an API for creating cards and new business models” and can be utilized to develop a variety of credit cards, both physical and virtual. For instance, Stripe Issuing can be used to create expense cards with customized credit limits for employees and can even be used by new banks to issue credit cards to their customers.

    Since its launch in 2010, Stripe has experienced steady growth in the payments sector. Its system has made it easier for businesses like Lyft, Postmates, and Slack to process payments for ride-sharing, food delivery, and team collaboration services, respectively. 

    Stripe’s Annual Transaction Volume Since 2015

    Image result for stripe annual growth chart

    Now Stripe’s new service aims to fill another gap in payment processing. Lachy Groom, the head of Stripe Issuing, explained to Bloomberg that the company has “tackled many of the major problems on accepting payments” but that businesses still have difficulties in moving their money.

    Analyst Jordan McKee expounded on the appeal this new service will have on enterprises. He said that developing a customized payment infrastructure is very complicated and expensive, which is why the majority of companies don’t bother with it. However, Stripe offering a “simplicity value proposition” will definitely bring to light new cases that haven’t been considered previously.

    Stripe Issuing service may also generate a tidy sum. Not only will it receive a percentage from every payment made on a card,  it could also grow its revenue by retaining customers who are looking for a one-stop source to issue and receive payments. 

    Dozens of companies have reportedly tested the product, although no names have yet been shared. Businesses who are interested in Stripe’s new service can head over to the company site to request an invitation.

    [Featured image via Stripe]

  • PayPal Ventures Into Banking, Targets Customers Who Don’t Have Bank Accounts

    PayPal Ventures Into Banking, Targets Customers Who Don’t Have Bank Accounts

    PayPal is venturing into new territory. The online payments company is reportedly set to offer traditional banking services to their consumers. Features like debit cards, direct deposit paychecks, FDIC insurance, and other financial services are expected to be introduced in the first half of 2018.

    What makes PayPal’s move more interesting is the fact that the company does not have a US banking license. However, the San Jose-based company has gotten around that little detail by collaborating with small banks that can handle those services. For instance, a Delaware bank will be managing debit cards while a Utah bank can offer loans to small businesses and other PayPal customers.

    At the moment, PayPal Holdings Inc. is only offering these features to a select group of clients. The company won’t be requiring a minimum balance nor will it charge any monthly fees. However, users will have to pay ATM fees if they use machines that are not included in PayPal’s MoneyPass system. They will also be charged one percent of any checks deposited via the smartphone camera system.

    Bill Ready, PayPal’s Chief Operating Officer, said the company’s new services are not intended to replace conventional banking system. He further explained that what the company wants is to offer banking choices to customers that have difficulty accessing them, which is something PayPal believes is vital as the world moves towards a more digital ecosystem.

    “We’re trying to bring more of those people into the digital economy,” Ready said. “For folks who don’t have bank accounts, for folks who don’t have credit and debit cards, we want to give them something so they’re not turning to prepaid cards, check cashiers and payday lenders.”

    PayPal’s COO also noted that there are around 30 million people in the US without bank accounts and that they spend about nine percent of their pay on fees and interests from alternative monetary services. With PayPal’s new banking features, these people will hopefully be given access to the digital economy.

  • PayPal Here Launches Two New Card Readers, Giving Small Businesses More Ways to Accept Payments

    PayPal Here Launches Two New Card Readers, Giving Small Businesses More Ways to Accept Payments

    Every customer wants a swift and smooth payment transaction, with little fuss. This holds true regardless of whether they’re buying from a major enterprise or a small business. That goal is certainly possible with PayPal Here’s two new payment card readers.

    PayPal recently launched a Chip and Swipe reader and a Chip and Tap reader, both of which will help users and small companies easily conduct credit card transactions anywhere.

    The Chip and Swipe reader is an improved version of the company’s previous swipe-style reader. It now comes with support for debit and credit cards with EMV chip technology. Meanwhile, the Chip and Tap reader can process contactless payment options from NFC-supported devices and also accepts EMV-supported cards. The device also comes with a portable charging stand.

    Image result for paypal chip and swipe card reader

    Both payment readers can easily process transaction choices like Apple Pay, Samsung Pay, and Google Pay.

    PayPal’s new readers have been designed with portability in mind. The two devices are about the size of a deck of cards, making it possible for small retailers and entrepreneurs to do business in any location—a country fair, the neighborhood cafe—without worrying about wires or having to carry bulky hardware. They can easily connect to any mobile device using Bluetooth technology. The readers also have a user-friendly interface and can now be used for extended periods, thanks to their rechargeable lithium-ion battery.

    PayPal is offering the Chip and Swipe reader for $24.99 and the Chip and Tap reader for $59.99. Both devices will work seamlessly with the PayPal Here. The app is available via the Apple App Store and Google Play.

    In a statement, PayPal In-Store’s Chief Chris Gardner stated that the company understands the “challenges small businesses face—including protection from fraudulent transactions and the costs of equipment to run their business—and constantly work to develop products and services that allow them to thrive in an increasingly competitive environment.” Their new and affordable card payment readers are their newest endeavor to help small business.

    Gardner also pointed out that small and medium businesses also look for a “one-stop shop” for all their commerce and payment services. After all, these companies don’t have the time to deal with various vendors to manage all these financial activities. PayPal is determined to be the company to handle these demands. Merchants can use PayPal for their online transactions, PayPal Here for their physical processes, and PayPal Working Capital to help finance their expansion.

    [Featured image via PayPal]

  • eBay Breaks Up with PayPal for Another Partner

    eBay Breaks Up with PayPal for Another Partner

    Even in business, some partnerships are just not meant to last. Despite working closely together for more than a decade, eBay recently announced that it would be ditching long-time partner PayPal as its primary payments processor by 2020.

    In a post on its company website, eBay announced on Wednesday that it has signed an agreement with Adyen, to replace PayPal. Ayden is an Amsterdam-based global payment company and one of PayPal’s rivals.   

    eBay acquired PayPal in October of 2002 for $1.5 billion. At the time, the two services seemed to be well-paired with eBay controlling the lion share of the online auction market while PayPal was the top player in online payment processing. However, by July of  2015, the two returned to being standalone businesses.

    While Adyen will eventually be easing out PayPal from its current role, eBay assures that PayPal will remain one of the payment options that buyers can choose upon checkout. eBay further revealed it has an “Operating Agreement with PayPal, which remains in place through mid-2020.”

    According to the auction giant, the shift to Adyen will bring in multiple benefits to both sellers and buyers. The cited benefits to sellers include lower costs and a simplified pricing structure, easier tracking of transactions and payment information as well as greater sales conversion due to the expanded payment options.

    Buyers, on the other hand, will now have more payment options upon checkout. eBay likewise promised a more streamlined checkout experience.

    Working together with eBay is a big win for Adyen especially considering the company’s relatively small size. Adyen posted a net revenue of $178 million in 2016. In comparison, rival PayPal posted almost $11 billion in revenue for the same period.

    Understandably, eBay’s announcement negatively affected PayPal shares with its price plummeting by as much as 10 percent on Wednesday’s trading. However, it is unclear how much the Adyen deal will affect its bottom line. At the moment, PayPal’s market value is around $102 billion, more than twice Ebay’s value of $42 billion. In addition, PayPal seems to be doing fine and has recently reported a 59 percent rise in profit for the fourth quarter of 2017.

  • Stripe Announces That it Will Stop Accepting Bitcoin in April

    Stripe Announces That it Will Stop Accepting Bitcoin in April

    Stripe, the Ireland-based payment platform, seems to be backtracking on its previously enthusiastic stance on cryptocurrencies as a mode of payment. In a statement issued January 23, the company announced that it is winding down support for Bitcoin and plans to ditch the cryptocurrency.

    The announcement was made by Stripe product manager Tom Karlo in a blog post on the company’s website. According to Karlo, the company will slowly wind down its support for BTC and, in three months, will totally end support for the cryptocurrency by April 23. Of course, this move is a reversal of its position on cryptocurrencies four years ago, when it proudly announced that it was the first payment platform to accept bitcoin as a mode of payment for transactions.

    Karlo gave three major reasons why Stripe is ending Bitcoin support. One reason for the company’s withdrawal is lengthy transaction confirmation which sometimes leads to failed transactions. “Transaction confirmation times have risen substantially,” Karlo explained. “This, in turn, has led to an increase in the failure rate of transactions denominated in fiat currencies.”

    Another reason is that Bitcoin’s price volatility makes it less than ideal as a means of payment. In fact, it is said that it sometimes takes hours for entering a transfer into a blockchain. Coupled with Bitcoin’s lengthy transaction confirmation, its price fluctuations could spell disaster for either of the transacting parties. “By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it’s for the ‘wrong’ amount,” Karlo points out.

    And, lastly, Karlo explained that the hefty transactions fees were another reason for dropping Bitcoin. He pointed out that BTC fees cost about as much as bank transfers, making it less attractive as a payment option. “For a regular Bitcoin transaction,“ a fee of tens of U.S. dollars is common, making Bitcoin transactions about as expensive as bank wires,” Karlo observed. “Bitcoin has evolved to become better-suited to being an asset than being a means of exchange.”

    But Stripe is not totally discounting cryptocurrencies as payment options and is closely monitoring developments in the segment which might justify “enabling support for in the future.”

    [Featured image via Stripe]