The iZettle mobile payment app aims allows users to accept credit and debit card payments on an “anytime, anywhere” basis. First of all, it would be interesting to know what prompted your company to get into the mobile-enabled credit card processing business. Why a mobile POS solution for Apple-powered devices?It all started in december 2009 when my wife - an entrepreneur producing and importing glasses from Asia- had been through the hazzle of signing a POS merchant agreement with a bank. It was way to complex and expensive and in the end it didnt make sense economically for a small company such as hers. I started looking for a solution, found out about Square but also realized that their model (swipe) wasnt applicable for chip card markets. The rest- as they say- is history and here we are 1.5 years later. Why iOS. Well, it is the most well defined and standardized mobile OS out there so it made sense from a development perspective.
When signing up for iZettle, do users also have to open a merchant account? How does iZettle function - what are the main steps in the payments processing cycle? Since security is our top priority and since iZettle is regulated by the Swedish FSA we need to obide by the same rules and regulations in regards to KYC and AML as any other company in our business sector. For that reason we have - in close co-operation with our acquiring bank - developed a digital way of enrolling new merchants. The process looks simple from a user perspective. However, behind the scenes the process is quite complex.
To get started, consumers and businesses simply download our app onto their iPhone or iPad and create an iZettle-account .You could start taking payments within 5 minutes if youre a person and within 24 hours if youre a business. Once your application has been approved we send you a free chip card reader in the mail.
As you start taking payments you will get daily deposits to your bank account (up to certain amounts).
What financial services partners does iZettle have?We have an agreement with a major European acquiring bank that support us across all European markets.
What steps must buyers and sellers (merchants, individuals) undertake in order to sign up for the iZettle service? Is a contract necessary for users to access iZettle?
a) merchants - see answer in question 2.When creating the iZettle account we ask for information like name, address, bank account etc. The final step is to agree to the iZettle terms and conditions. No other agreement is necessary.
b) Buyers - need their credit/ debitcard. No registration necessary. Just like in any other store.
What user segments does iZettle target? iZettle is designed with two audiences in mind. The first is small businesses and in-home service providers, such as housekeepers, plumbers, gardeners, carpenters or repair people. The second is individuals – especially young people – who are rapidly abandoning cash, and would prefer to settle-up restaurant bills or casual sporting wagers between friends, or yard-sale purchases by neighbours, without having to run to the ATM.
What are the top three USPs for iZettle? What parts of its value proposition do you expect to prove most convincing in bringing customers on board? The iZettle solution for chip card payments is one of a kind and we believe it will be a game changer. We make it possible for small business and individuals to take chip card payments anytime, anywhere. We make payments easy.
Are credit checks compulsory for would-be customers? For businesses – yes. For private persons – no, but we do obide by several KYC and AML rules stipulated by the FSA and our Acquiring Bank
How do you ensure that the payment-processing infrastructure behind the service stays both functional and – most importantly – secure?
iZettle meets all security requirements of the payment card industry. We are EMV (Euorpay, MasterCard and VISA) approved, and compliant with the Payment Card Industry Data Security Standard (PCI-DSS). No sensitive data is ever stored on the mobile device or iZettle reader, and all data traffic is encrypted.
How are receipts received and stored? Receipts are emailed to the buyers inbox. It’s also possible to share a picture of what you bought to your Facebook friends.
As a seller with iZettle you can see your sales/transactions in real-time both in the app and on the web, logged in to your iZettle account.
Have you set transaction limits in place in order to deal with fraud risks? With the card reader the limit is €2 500 per transaction and €5 000 per day for businesses and € 1 500 per transaction and € 3 000 per day for individuals.Without the card reader (you can use the app without the card reader by manually entering the card number) the limit is €50 per transaction and day for both businesses and individuals. Using just the app without the reader is perfect for settling debts between friends but it is not meant for business use.
Are you worried that the wide-scale availability might attract dubious merchants, which do not fulfil standard requirements for traditional merchant accounts?Merchant enrolment is our biggest challenge for sure. Theres always a potential risk but we’re confident we have ways of managing that risk. We have a good process in place developed together with our acquiring bank and as mentioned we do credit checks on all businesses before they’re approved as iZettle users as well as work with different kinds of fraud protections measures like limits per transactions and day, system surveillance etc. Its an iterative process.
Upon launching its services, iZettle announced that during the current phase of introduction, it is making 2,000 card readers available free of charge. Will users have to pay for the readers later on? We’re launching in beta mode and will closely monitor how the service is used and perceived. We hope and believe we can continue giving away readers for free.
What next steps is your company planning? Right now we’re focused on making our beta program in Sweden a success. But with our solution and certifications we can serve any chip card market in the world. After just launching our first site and video we have had inbound requests from all over the world. Time will tell where we set our first footprint.
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