iZettle to launch iPhone card payment app and chip-card reader
Swedish start-up iZettle will next month launch a chip-card reader and app enabling anyone with an iPhone to receive payments from credit or debit cards.
According to iZettle CEO and co-founder Jacob de Geer, the idea behind the device is to empower the 20million small businesses across Europe that are currently only able to accept cash payments.
iZettle plans to give away its software and reader, taking instead a transaction cut.
de Deer explained to the WSJ: “If you are a plumber or an electrician, you could take a payment there and then, rather than have to invoice your customer and then wait for days for them to pay you.”
Twitter co-founder Jack Dorsey has already launched a similar product in the US called Square, but, as US debit and credit cards still rely on swiping magnetic strips instead of the chip cards favoured in Europe, the iZettle system is seen as much more secure.
The smart card reader does not however ask for a customer’s PIN to authorise payment, instead prompting them to sign the screen as “PIN is still not allowed in cellphones and iPads,” according to de Geer.
de Geer goes on to explain that the card reader market is highly regulated, with trade body EMVCo insisting on 100% compliance before permitting the release of a new chip card reader. “EMV is an enormous amount of rules and regulations and certifications. We have constructed a hardware device and backend that is EMV certified.”
The app also allows customers to email a receipt to themselves and share news of their purchase via their FaceBook account.