Barclaycard has become the latest entrant into the crowded UK mPOS market, unveiling an app and card reader combo.
Not much point unless Barclays gives out merchant / acquirer accounts more easily than otherwise. Much of SQUARE's success can be attributed to its placing itself as a "master merchant" and enabling mobile merchants to accept card payments without having
to apply to banks for merchant accounts - and inevitably face rejection because banks find their risk profile too high to qualify.
Not sure of the charging structure Barlcays are going to put in place - but for a relatively low turnover card accepting merchant, buying the hardware and paying a higher fee with longer settlement timeframes may not be overly expensive, when compared
to fixed monthly terminal lease costs. If the merchant can stand the cashflow impact of delayed settlement then Barclays could well be able to play with their risk models.
c.£70-100K base, commission + equityLondon, UK
© Finextra Research 2015