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Lithuanian startup kevin. bids to cut out card networks at the checkout

Lithuanian startup kevin. bids to cut out card networks at the checkout

Lithuanian payments startup kevin. has released a novel product for merchants that switches customers from card payments to account-to-account (A2A) payments at the checkout.

Customers who start making a payment using their card can finish using their bank account, a method that is up to 90% cheaper for merchants.

Pavel Sokolovas, co-founder and COO of kevin., says: "In Europe, up to 80% of all online payments are made by debit card. And behind every debit card there's an account, which means these payments could be made directly from accounts."

At checkout, kevin.'s software identifies the related bank after the customer types in the first eight digits of their card number.

"If it is a debit card, we then give the customer the option to switch to a bank payment, explaining that this is faster, safer and easier," says Sokolovas. "In fact, our method requires at least two fewer steps than a typical online card payment, with no need to enter the card holder's name, the expiry date, or the CVV number. With no card and CVV this flow is much safer for the customers."

The firm says that in closed Beta testing, ten percent of customers chose to switch from debit to A2A payments.

The product launch comes after kevin. announced a €1.5M seed raise, bringing total investment in the startup to €3.4 million. Founded in 2018, is currently operating in Finland, Sweden, Estonia, Latvia, Lithuania, Poland, Portugal, and the Netherlands, with plans to offer its payment infrastructure to clients in 14 more European markets by 2022.

Comments: (3)

A Finextra member
A Finextra member 03 March, 2021, 10:33Be the first to give this comment the thumbs up 0 likes

Anything that introduces more competition into a sector dominated by US card schemes has to be welcome. My worry is that in response, the US players may tokensize the PAN number and remove the ability to identify the underlying account information.

Vernon Crabtree
Vernon Crabtree - My comments are my own - Utrecht 03 March, 2021, 15:41Be the first to give this comment the thumbs up 0 likes

I can't see how the bank account can be identified from the first 8 digits. The bank maybe - and then it would make sense if it provids a link to the banks internet payment method.
The article had me confused at first - this is not in-store, only internet "checkout" (I assume)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 04 March, 2021, 13:00Be the first to give this comment the thumbs up 0 likes

@VernonCrabtree + 1.

#MeToo. I was trying to remember the last time I typed in my debit card / credit card number into an instore POS terminal.

Faster and easier, maybe, but kevin. is duplicitious in its claim that A2A is safer than debit card / credit card - the latter payments provide fraud protection whereas I don't know a single A2A payment that does.

On a side note, it'd be interesting to watch whether and how card networks respond to this brazen guerrilla marketing tactic by kevin..