October 22, 2013
Receiving money through credit card conveniently, could be a boon to street sellers. Homeless individuals in Stockholm are triggering a trend to make transactions in Stockholm ‘cashless.’ According to The Guardian, iZettle has partnered with Situation Sthlm to sell street newspapers by homeless people. The homeless people end up accepting mostly cashless payments through smartphones and card readers for every transaction.
iZettle provides a card reader which is used by buyer of the magazine to swipe the card. The buyer enters the PIN and puts a signature on the screen to authenticate transaction. Card readers and the phones are kept at the Situation Sthlm’s main office to charge the devices and for safety reasons. The sellers pick up the smartphones and the card readers each day while they pick up their share of magazines to be sold.
iZettle and Situation Sthlm were involved in a month long trial to roll out such payment service. A total of 5 sellers were asked to sell the magazines and accept cashless payments. The total cost of carrying out such a service cost the companies less than 5 pounds.
According to Jacob De Geer, iZettle’s CEO, Stockholm is approaching towards becoming a cashless society. Two things which are adding to this trend include:
· Population under 40 carry cash only on a routine basis.
· Homeless and the general public trust the credit card system over other systems.
Speaking about the Stockholm’s switch to becoming a cashless society, De Geer says Sweden is getting closer and closer to a cashless society as most people here prefer to pay by card. Cash is still important but if you don’t accept cards you will miss out. We’re very happy to make it possible for organisations like Situation Sthlm to accept cards. People are happy to trust their cards with the vendors because they trust the card system. This is a milestone for us as it’s taking our vision to democratise payments to another level.
LTP View: With multiple mPOS providers in European market, we could see partnerships like iZettle and Sthlm Situation on the rise. Such partnerships may help in increasing the adoption rate of cashless payments among the masses.