Paymill – competing with the likes of Stripe, Braintree and ZooZ

Fintech innovation is happening at a level unparalleled in history. Paymill is one such company which enables businesses to accept payments securely and efficiently on their website.

Paymill was founded in June 2012 and is headquartered at Munich, Germany. It employs a team of around 55 persons led by Mark Henkel (CEO), Jorg Sutara (CMO), Stefan Sambol (COO) and Kilian Thalhammer (CPO). Paymill has acquired a total funding of $5 Mn through investors including Rocket Internet, Holtzbrinck Ventures, Sunstone Capital and Blumberg Capital. Paymill accepts MasterCard, VISA, American Express and Diners Club to process payments across Europe in 120 transaction currencies and 23 payout currencies.

Paymill says that its payment solutions offers an intuitive mobile payment solutions and ability to create friendly marketplace payment solutions:

  • The card payment can be made in a short while on the website and the integration process can be done immediately.

  • Paymill charges a onetime fee of 2.95% of the transaction amount along with 0.28€ for each transaction.

  • No registration is required to test the features of API.

  • Activating an account on their website is easy and all necessary documents are validated within just 48hours according to the company.

  • There is no monthly fees charged and a merchant cockpit is provided so as to keep track of customers, payments, transfers, etc.

Paymill essentially has 3 product lines:

  • Paymill REST API: provides reduced development costs, custom in-site checkout with redirect and industry standard security and encryption is done.

  • Paymill Subscriptions: This solution accepts recurring payments fast and easily. It enables full control of billing intervals and the size of the subscription. The Merchant can easily manage and modify subscriptions from his Paymill account and also create customized subscriptions plans using Paymill’s API.

  • Paymill UNITE: It makes marketplace payments easy. It collects a commission from merchants in their marketplace, provides integrated onboarding and create one click check-out process.

Mark Henel, CEO of the company believes UNITE to be perfect response to customer’s need of integrating debit card and credit card entries. Paymill has also launched MOBILE SDK for mobile payments. It is for both iOS and Android servers, the main purpose of which is to integrate payments into one app. This enables customer to pay inside the app very fast and quickly without having the need to leave the app and thereby closing the gap in the mobile ‘check-out-chain’.

Other companies operating in this space include ZooZ, Stripe, Braintree and WePay. ZooZ follows a consumer driven approach, thereby concentrating on user behavior and needs in addition to technical aspects of payments. The company follows a pricing model of 2.8% + $0.19 per transaction, simply meaning that it doesn’t get paid unless the developer does. The platform provides payment through credit cards as well as the option to use PayPal or Dwolla and other options. The company also enables customers to use their mobile bill to make payments by providing them mobile payment service.

LTP View: With the mobile commerce industry in the expansion mode, Paymill and other players like Stripe, Braintree, WePay, ZooZ and others may lure merchants to use them over others through lower transaction fees and with other innovations. Paymill charges 2.95% + 0.28 € which is higher than that charged by ZooZ of 2.8% + $0.19 per transaction.