An alternative payments company is going mobile with its popular cash payment network.
PayNearMe Inc. is unveiling the mobile function in mid-February to accommodate the growing number of smartphone users, according to CEO Danny Shader.
It will be the first mobile cash-payment application, Shader said. The cash audience increasingly is carrying these devices.
PayNearMe allows customers who don't have a credit or debit card or just prefer cash to conduct remote business transactions securely.
Consumers show a printed bar code or a card at 7-Eleven stores to make cash payments through the network. PayNearMe has contracts with about 100 billers that represent thousands of other billers, including auto lenders and collection agencies.
With the mobile system, Progress Financial Corp. will transmit a bar code to customers smartphones via text message. An employee at 7-Eleven would then scan the code to complete the transaction after receiving the cash, according to an article at Bank Technology News.
This is good news for the payments industry. A greater adoption of mobile in-store payments is necessary to advance the industry as a whole, according to a payments processing expert at US Dataworks.
PayNearMe charges billers $2.99 for cash payments up to $300, $3.99 for payments from $300 to $500, and $4.99 for payments up to $1,000. The biller decides whether to assume that cost or pass it along to the consumer.
E-commerce merchants are charged an embedded rate similar to traditional card transactions, Shader said. He noted that rates differ depending on the category, selling price and other factors.
Source: Bank Technology News, January 2012