Mobile payment services provider Payleven has introduced a new pricing model for the U.K., bringing prices down for its fixed fees on pay-as-you-go transactions for customers that process more than £2,500 (US $4,137) per month. Under the new model, transaction fees start at 2.75 percent and can go as low as 1.5 percent, depending on how many card payments a merchant processes. A small business that processes between £2,500 and £5,000 (US $8,273) a month using Payleven will be charged transaction fees of 2.25 percent. For those that process more than between £5,000 and £7,500 (US $11,582) per month, fees will decrease to 1.75 percent, for those that process over £7,500 per month, fees will be 1.5 percent. The rate reduction applies to all current cards accepted by Payleven, and the transaction fee is calculated automatically. The cost savings will be paid back directly to the customer the following month.
Payleven, which specializes in services for small and medium-sized businesses, which derive particular benefit from its pay-as-you-go billing. The company’s Chip-and-PIN solution, in use in 10 countries, connects to smartphones and tablets via Bluetooth to execute payments in retail and other establishments. This sliding fee scale seems to us like a good way of not only promoting the adoption of this kind of mobile payment among merchants and other clients but of encouraging wider deployment and greater volume of use among those entities that already have it. Payleven managing director Ian Marsh stated, “We strive to help merchants to grow their business and are very happy to support them with our new pricing model that retains the core Payleven proposition of being 100 percent pay-as-you-go and fully transparent whilst also delivering highly competitive pricing for larger customers.” Undoubtedly, the proliferation of mobile payment technologies in developed markets such as the U.K. is desirable to fixed and mobile operators as well as to providers like Payleven.
Other Notable Developments
New iPhone May Feature NFC
Speaking of mobile payment technologies, people familiar with Apple’s strategy are indicating that the new iPhone 6, which will debut on 9 September, will include near-field communication (NFC) capability for the first time. NFC, which enables contactless payments and other interactions between devices (for example, those involving sharing of content via social media), has long been avoided by Apple. If the new iPhone does in fact include it, that stands to increase the use of mobile wallets and NFC in general in those markets, such as the U.S., where Apple is particularly strong.