PayWith offers merchants lowest transaction fee available in Canada
VANCOUVER, April 1, 2014 /CNW/ - As Canadian merchants and the credit
card networks fight over transaction fees, an innovative mobile
payments app is now enabling retailers and restaurants to avoid paying
high credit card fees. Created by Vancouver-based PayWith, a new
secure smartphone-based payment method called the "mCard" offers
merchants the lowest transaction fees available in Canada.
"With PayWith's mobile solution, merchants will be charged the lowest
transaction fee of any credit card," says David Strebinger, co-founder
and CEO of PayWith. "The mCard effectively eliminates the high credit
card fees merchants have complained about paying when transacting
premium or even traditional cards."
Merchants and retail associations have long been lobbying for the
ability to pass on to the consumer the higher cost incurred transacting
premium cards. Last summer, the federal Competition Tribunal reviewed
the issue of high credit card fees. Last week a multibillion-dollar
class-action lawsuit by a Vancouver storeowner challenging the fees
paid by merchants on credit card transactions was approved to proceed
by the B.C. Supreme Court, and parallel proceedings are underway in
Typically, premium credit cards offer reward miles, points and other
benefits for consumers, but require higher transaction fees to be paid
by merchants to the credit card firms. Merchants who accept credit
cards pay fees ranging form 1.5 to 3.0 per cent of the value of the
"People love their points, and credit card loyalty rewards programs are
at the heart of the ongoing dispute between Canadian merchants and
credit card networks over transaction fees," says Strebinger. "The
introduction of PayWith's mCard is welcome news, particularly for small
business owners who can benefit from this mobile payment technology and
save money. It's also a positive development for consumers who can
continue to choose how to use their credit cards and enjoy the card
benefits they've come to value."
Brendan Ng, a small business owner who runs the Fresh Bowl restaurants
in Vancouver, is one of the first adopters of the mCard. He knows the
restaurant industry is particularly sensitive to rising credit card
fees and has successfully implemented the mCard to save on transaction
fees and help grow his business.
"There are real incentives for using the mCard on both sides of the cash
register. While I save on transaction fees, my customers enjoy the
benefits of their regular and premium credit cards, plus the branded
incentives I send them on their smartphones," says Ng.
In addition to offering merchants the lowest transaction fee available,
the mCard technology platform allows any merchant to implement rewards
programs similar to the successful Starbucks App to help them grow
their businesses and increase their revenue.
When consumers load their PayWith app or "mobile wallet" using any major
or premium credit card, PayWith not the merchant is paying the
transaction fee associated with that card. When a consumer uses their
mCard at participating merchants, PayWith guarantees a transaction fee
that is less than what the individual merchant currently pays using
traditional plastic cards.
"Unlike other mobile payment companies, our business model is not based
on revenue from the payment transaction," says Strebinger. "PayWith's
focus is to deliver a better transaction and rewards experience for
consumers, and a superior price and service for small and medium-sized
How it works:
Once a consumer has downloaded the PayWith app and linked their credit
card to it, they can then use an mCard to pay merchants at
participating locations. mCards are secure, dynamically generated
virtual card numbers that change for each mobile transaction.
Merchants simply authorize the mCard payment on their existing
terminals, without the need for additional software or hardware, and
pay the lowest transaction rate of any card. Consumers still get
their premium card benefits and may also receive instant rebates,
discounts and other incentives that are managed by the merchant through
the PayWith platform.
Following a successful 12-month pilot conducted in Vancouver and
Phoenix, Arizona, the mCard is first being made available to all types
of merchants in the Greater Vancouver Area and will be rolled out
across Canada over the next 18 months to become a widely available
About PayWith Worldwide
PayWith Worldwide (www.PayWith.com) provides merchants an ultra simple solution for transacting mobile
payments, running rewards and loyalty campaigns and selling branded
gift cards without any new hardware or software. PayWith is focused on
merchant profitability and quantifiable exposure. At the core of the
PayWith platform for merchants is a "Pay Per Result" marketing system
that tracks the ROI of every marketing campaign. Consumers "Pay With"
branded mCards using their mobile phones and merchants receive relevant
customer data and analytics that helps drive more customers spending
more money more often.
SOURCE: PayWith Worldwide Inc.
For further information:
For further information or interviews contact:
Public Affairs, PayWith
CMO, PayWith Worldwide