27 July 2016
Alexander Peschkoff

Beyond TEDIPAY

Alexander Peschkoff - TEDIPAY

115Posts 475,747Views 551Comments
Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

Emu - flightless bird or soaring eagle?

07 October 2012  |  2497 views  |  0

Less than a week ago, Finextra's News section ran a press release by Emu who promised a Holy Grail alternative to Square and iZettle - no dongles, and (almost) no charges (Emu's Web site does prominently display "0% per sale"). 

That news article mentioned "no charges for the first £1,000 of sales and a flat fee of £4.99 a month after this". Emu's T&C state that the merchant's annual turnover is not to exceed US$100K (let's say £60K). A merchant fee of £5 per month on the basis of a monthly turnover of £5,000 translates to... 0.1% of sale amount.

Anyone even remotely familiar with the interchange fee knows that Visa/MasterCard charge much more than that. Hence, Emu would be losing money on every transaction.

Now, Google can afford a loss-making business model when it comes to payments. Does Emu (operated by emu Retail Network Ltd) has similarly deep pockets or high-volume advertising arm to leverage transaction flow of payments? Or is it the case of "Emu is a flightless bird"? Or are they a new stealth start-up similar to the likes of Tappmo (which is yet to soar)?

Can anyone at Finextra cast a "reliably informed" light on this enigma?..

TagsMobile & onlinePayments

Comments: (0)

Comment on this story (membership required)

Latest posts from Alexander

Fancy a quickie?

21 November 2015  |  1715 views  |  0 comments | recomends Recommends 0 TagsInnovationStart upsGroupInnovation in Financial Services

You must be kidding me

14 November 2015  |  1628 views  |  1 comments | recomends Recommends 1 TagsInnovationStart upsGroupInnovation in Financial Services

Alexander's profile

job title CEO
location London
member since 2012
Summary profile See full profile »
I am the co-founder and CEO of TEDIPAY, the company that is bringing to the market a game-changing platform for secure mobile transactions.

Alexander's expertise

What Alexander reads
Alexander writes about

Who's commenting on Alexander's posts

Mikhail Myznikov
Tapan Agarwal
Pierre Galeon