While there’s a lot of excitement around the launch of Apple Pay, Kash thinks it can win over merchants by saving them money. On average merchants pay 3-4% on every credit card purchase. That percentage gets divided up among a slew of processors that help facilitate the network and make card transactions possible. Kash’s new app enables merchants avoid those fees by taking money from a consumer’s bank account and sending it directly to the merchant. Kash itself collects a quarter of a percent on those transactions.
Both consumers and merchants need to download the app, and merchants can integrate the software with their existing point-of-sale. Kash generates an RSA code that changes every 50-60 seconds for each consumer bank account, which merchants scan — similar to Bitcoin wallet Circle.
So far, the company has launched in 15 San Francisco Bay Area stores (mostly coffee shops, lunch counters and juice bars). Following the round which was funded by Tim Draper, Structure Capital and Green Visor Capital, the app is available nationwide.
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