Visa's payclick takes on PayPal for micropayments

SDK available for CMS integration

Visa's payclick is aimed at the online micropayment market, but it doesn't integrate with PayPal yet

Visa's payclick is aimed at the online micropayment market, but it doesn't integrate with PayPal yet

Credit card giant Visa has entered the micropayment processing space with payclick, a pre-paid hosted service aimed at teenagers purchasing online line content such as music and games.

Like PayPal, payclick is an online money repository that people can pay into with a bank account, credit card (Visa or MasterCard) or BPay and use the funds to purchase products online. No PayPal integration yet.

Developed in Australia, payclick is available for use from today and content online businesses including Telstra’s’ BigPond and Apple iTunes are offering the payment option.

According to analyst firm Investment Trends, the market for online micropayments where the transaction is less than $20 is about $646 million this year and will rise to more than $1 billion in 2012.

Payclick general manager, Greg Storey, said the service targets an un-met sector of the community and it has features to enable parents to control online payments made by their children.

People under 18 need to have their parent’s 'sponsor' their account, and money can be shared among family members only, not other payclick accounts.

Visa will do an integrated marketing campaign across online and cinemas to launch payclick.

On the merchant side, payclick does not require the e-commerce site to store any credit card details and although it is initially focused on digital content, Storey said the service can also be used for goods.

“The service is free for consumers and the merchant fees are competitive with other offerings,” Storey said.

Formerly the CIO of Pulse International, where he established a POS network, Storey has held positions at Visa and St George Bank.

Visa already has an extensive network of online payment gateway services – from e-commence sites and integrators to the banks themselves – and it considers payclick as a complementary service.

The amount of money held in a payclick account must be between $20 to $1000 and withdrawals to a bank account are not allowed. Payclick also supports recurring transactions.

Merchants can have their sales funds transferred into a bank account daily, weekly or monthly and an SDK is available for integrating payclick into an existing Web application.

Visa Asia Pacific general manager, Chris Clark, said with global e-commerce growing at more than 10 per cent a year, consumers are looking for more convenience when shopping online.

“Payclick can also be used alongside an existing payment gateway to give customers more options,” Clark said.

PCI compliance is not required for payclick as online sellers do not store the credit card details.

Tags payclickmicropaymentse-commercevisacredit cardspaypalpayment gateways

More about AppleCMSetworkPayPalSt George BankTelstra CorporationVisa

1 Comment

Philip Cohen

1

Draft Media Release

“It is with very great sadness that eBay’s Chief Headless Turkey, John Donahoe (aka “Peter Principle”—among many other derogatory terms), announces the probable demise of eBay’s most ugly daughter, PayPal. PayPal is about to be stricken by particularly virulent strains of Visa+CyberSource and Mastercard Open Platform, aggravated by PayPal’s insurmountable lack of direct financial institutions participation and a great deal of PayPal user/merchant dissatisfaction, particularly with respect to PayPal’s grossly unfair, “all responsibility avoiding” UA, totally primitive risk management processes, and grossly unprofessional, buyer-biased, fraud-facilitating, transactions mediation.

“PayPal’s health may therefore be expected to deteriorate and, if ultimately not completely incapacitated, will most likely be eventually confined to its mandatory offering on what little there will be by then left of the Donahoe-devastated eBay marketplaces. There is no cure for this condition, and the “eBafia Don” is particularly saddened by the inevitable presumption that it is unlikely that PayPal will be able to continue to underpin eBay’s sagging bottom line in the future.”

Also, unlike all other payments processors operating in Australia, PayPal has declined to sign up to the payments processors’ “Code of Conduct”. The clear message therefrom is “users beware”!

The fact is, had the original developers of the “bankcard” concept ever behaved the way PayPal behaves, credit/debit cards would never have gotten off the ground, and we would still be paying for all our purchases with pieces of paper and little metal discs.

A detailed examination of and prognosis for PayPal (including a further link to the “PayPal Horror Tour”) at:
http://www.auctionbytes.com/forum/phpBB/viewtopic.php?p=6504554

eBay/PayPal/Donahoe: Dead Men Walking (already brain dead)

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