November 12, 2013
In the U.S, a number of companies such as Braintree and Stripe are trying to make it easy for developers to process credit cards and receive payments. Pin Payments is the first company to launch an all in one platform for accepting credit card payments online in multiple currencies in Australia.
Pin Payments was founded in November 2011 by Grant Bisset and Dominic Pym. The company has partnered with companies such as Shopify, Xero, ashop, Bigcommerce, spreecommerce, Woocommerce, floktu, Payly, Skedda, Pushpay and ChargeDesk among others.
The company says that it is Australia’s first all in one payment system that provides API driven multi-currency payments without the user having to establish a merchant account.
So how does it work?
To begin with, the user has to provide an email id and password. He can then use the test API and start integrating card payments onto his application or website.
When the merchant is ready to start accepting live charges from the customer, he has to go to his dashboard. Enter the account section and provide some contact details.
Upto 5 business days could be required for the merchants account to be activated for accepting live charges.
Proceeds from the merchant’s sales are transferred to his bank account everyday for charges made 7 days prior.
There is no settlement fee and the transfers are automated. Any applicable transaction fees is held back automatically from the merchants sales.
Cash from the merchants sales are held in trust for 7 days.
Pin Payments says that during this period the funds belong to the merchant and the settlement schedule protects him and his customer in case of reclamation of funds. It enables the merchant to avoid maintaining a security deposit.
Pricing system for Pin Payments:
Each successful transaction is charged 3% + 30c with: Zero hidden interchange fees; Zero minimum balance or security deposits required; AUD, USD, NZD and SGD transactions included as standard; and Free automated fraud detection on every transaction.
In case of disputed transactions resulting in a chargeback, the user incurs a fee of $25.
Foreign currency transactions are automatically converted to AUD before being transferred to the user’s bank account. The conversion is completed at a retail foreign exchange rate of 4% on top of the wholesale interbank rate at the time of the transaction.
Smaller payment companies and startups are finding it hard to enter the mobile payment space in Australia which is dominated by the big 4 banks (National Australia Bank, Commonwealth Bank, Westpac, ANZ) and PayPal. Paypal has around 80,000 customers in Australia. In June 2013, Braintree entered Australia to target software developers. The company’s clients include 99designs.com and Perth based Agworld.
The developer audience is absolutely our first audience, said Grant Bissett. They’re a really potent channel multiplier. Each developer will influence 30 projects over their career. While they are not necessarily the business owner, they are a decision-maker when a payment system is being evaluated he added.
Recently, Pin Payments acquired Spreedly’s subscription base service and customer base. Spreedly’s solution provides secure credit card storage and multi-bank connectivity to online businesses. Lets Talk Payments had written about Spreedly.
LTP View: Even though the 4 big banks enjoy monopoly in the market, the vast potential in the market could see Pin Payments grab their own share of developers and merchants.