Swedish mobile payment startup iZettle has solved the Visa security problem by introducing new chip-and-PIN technology. Previously, Visa refused payments from the service as it did not meet the credit card’s stringent security policy – problematic for the startup as Visa is one of the most popular credit card brands in Europe.
iZettle says the new device works with Visa, Visa Electron, V Pay, MasterCard, Maestro and American Express. The chip-and-PIN reader connects to smartphones or tablets via Bluetooth and is a free app. iZettle merchants are not required to pay fees – the company receives 2.75 per cent of each transaction, a standard percentile that is also taken by Berlin-based rivals Payleven and SumUp.
The introduction of the chip-and-PIN technology has been widely adopted by other mobile payment services that also faced difficulties complying to Visa’s security policies. Payleven, which is a Rocket Internet portfolio company, brought in similar technology just two weeks ago – to be shipped from 18 February. Both Payleven and iZettle’s new devices cost €49.
On the new technology, cofounder and CEO of iZettle, Jacob de Greer, said: “Our vision from day one has been to simplify and democratise payments. After seeing a great demand and take up on our chip and signature solution, adding a chip-and-PIN reader to our product offering enables us to extend our target group of individuals and micro merchants to include businesses with higher transaction volumes.”
Coinciding with the news was the announcement that iZettle has made a partnership agreement with Spanish bank Banco Santander. It’s the first bank in Spain that allows micro merchants to accept card payments with smartphones or tablets.
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