iZettle, the social payments company, today announces it is the first mPOS company in the UK to drop its transaction fees for small businesses who take over £2,000 a month.
The new pricing model sees iZettle cut its standard 2.75% transaction fee to as little as 1.5% for users.
The more sales customers take using iZettle, the lower their transaction fee. A plumber taking £5,000 a month pays 1.92% in transaction fees whereas a coffee shop that takes £13,000 or above pays 1.5%. The rate reduction applies to all cards and the Smart Rate is automatically calculated by iZettle who send the cost savings back to the customer at the end of every month.
Andrew Landsburgh, director of Destiny Scotland, property management company, comments: "All of our clients pay by card as nobody carries cash anymore. It is crucial for us to keep transaction fees as low as possible as we are keen to maintain a healthy and stable business. We've trialled the Smart Rate for a month now; we're big fans and can already see a difference. I'm definitely looking forward to receiving that money back in our account every month. As every successful entrepreneur knows, every penny counts!"
The launch of Smart Rate, coupled with the introduction of iZettle's Chip & PIN solution and its free analytics software, brings the company yet another step closer to becoming the one-stop shop for a merchant's payment needs. Now SMEs of all shapes and sizes have access to a suite of tools that help them to manage payments, spot sales opportunities and, ultimately, grow their business.
"We see a great take-up on our Chip & PIN reader from small businesses processing high volumes of sales and we are extremely excited to be the first to bring this type of pricing model to these merchants," says Jacob de Geer, co-founder and CEO at iZettle. "Our users don't have to do anything to take advantage of the new pricing as Smart Rate kicks in as soon as your payment levels go over £2,000."
Sweden's Financial Supervisory Authority regulates iZettle, whose services are EMV (Europay, MasterCard and Visa) approved and compliant with the Payment Card Industry Data Security Standard (PCI DSS).