The market for online payment processing is set for a shakeup following the announcement yesterday that NetRegistry will offer an online payment facility with no transaction fees.
Better known for its domain name registration services, Netregistry has partnered with the National Australia Bank and provider of payment gateway technology Quest Software to offer TheMerchant as a service within its web hosting division.
Larry Bloch, CEO of NetRegistry said TheMerchant will allow business to take payments over the internet without having to charge transaction fees. Business will be required to pay an establishment fee of $350 in addition to service charges of $50 per month.
Bloch said traditionally transactions fees have been a barrier to the adoption of online payment methods.
Of Australia's 50,000-60,000 business Websites only about 1500-2500 conduct online payment processing, he said.
"Part of the problem is banks. They haven't made it easy. . .and suppliers have missed the market.
"Existing solutions tend to be difficult and complex and charges are quite high," Bloch said.
"Cost is a barrier to entry because [businesses are] already paying merchant fees."
Despite entering a small market Bloch is confident NetRegistry's solution will be a "screaming success".
"It is very difficult to say how many companies will want an online payment facility, but we do know that a small amount have one now.
"We are really hoping to develop the market to three or four times the size it is at the moment and end up with 70-80 per cent of the market in a 12 month period," Bloch said.
According to Bloch, the solution will first be offered to online merchants, but will be extended to online Eftpos terminals and batch processing in a few months time.