Seamless - traded on the Nasdaq/OMX First North list - launches a new payment solution for retail and online trade.
The new solution will enable customers to use smart phones rather than credit or debit cards to make payments. By using a mobile phone to scan a QR code at the cash register, the customer can authorise that the payment is drawn from their bank account or credit provider.
The Seamless solution - for which patent is currently pending in a total of 41 different criteria - makes it possible for retailers to avoid the high fees charged by credit card companies.
Each cash register has cashier integration and a unique code that together with Seamless' transaction platform ERS 360° makes it possible to send the sum of transaction directly to the customer's mobile phone for authorisation. The authorised sum is then withdrawn directly from the customer's bank account.
"There are two really interesting things here. We bypass the credit card companies completely, meaning that retailers no longer need to pay their high fees. Also, the fact that we make use of existing hardware means that the system can be implemented in new retail chains very quickly and without any investment costs for the retailer," explains Peter Fredell, CEO of Seamless.
The retail and grocery trade sectors currently pay high fees to credit card companies in order to use their services. In addition, they are required to invest in new card payment terminals every time a new standard is introduced. In the US, retailers pay $49 billion each year in credit and debit card fees. With Seamless'solution, retailers have a chance to halve their current costs.
"If we imagine that all US retailers start using SEQR, the total savings could be as high as $24 billion each year. This demonstrates the massive potential of the solution," says Peter Fredell. He continues: "The technology is simple and easy to implement for the retailer since all they have to do is stick a QR code sticker at each cash register. Then, the muscle power is provided by our very advanced and proven ERS 360 system which provides the necessary transaction management, security and links to the customer's bank account or credit provider Our platform is currently handling more than 2.4 billion transactions in 26 countries each year.
Only a select few stakeholders in the world are capable of handling such a high volume of transactions, and our operational security is considered second to none. Our presence in these countries also means that we can roll out the new solution quickly without any major technical difficulties."
How it works The consumer uses his/her mobile phone to scan a simple QR code at the cash register terminal. The terminal is connected to Seamless' transaction platform and the QR code identifies the cash register that the customer is using. Seamless' platform then responds with a list of items entered and an amount to be paid. The consumer can thereafter pay directly using his/her mobile phone. The transaction takes approximately half the time of a standard card payment transaction.
Seamless filed patent applications for the solution in the EU and the US on October 12, 2011.