Based in Normandy and Paris, startup Paytweak has developed a new dematerialized payment solution for retailers. To pay for their purchases, customers simply enter a single-use code on the vendor's mobile application.
On June 18, the company specializing in secure omnichannel remote payment unveiled its universal mobile application for physical stores. It is not intended to replace payment terminals, but to simplify and secure transactions that cannot be carried out using contactless payment.
Cashing card payments without a terminal
Paytweak has announced the launch of a mobile application available for Android and iOS that enables payment without the need for a payment terminal. Directly linked to banks and payment service providers (PSPs), it triggers payments via NFC, QRcode or Scancard. If the merchant's device is equipped with NFC technology, the customer simply places his or her card on it. If the merchant's device is not NFC-enabled, the customer must scan the card's visual cryptogram, or enter the one-time code received by SMS, as for a secure online purchase. The merchant, for his part, receives payment instantly into his bank account.
The solution presented by Paytweak is reserved for purchases over a certain amount. It does not require a box, and is therefore not intended to replace payment terminals. It aims to "provide an easy-to-deploy solution for physical networks with several hundred stores", says the startup. The travel agencies of the Thomas Cook Group and BNP Paribas have been testing the mobile application for several months. While it may seem inappropriate for supermarkets or fast-food outlets, it could, for example, be useful for UPS delivery drivers to collect cash.
An application available in several countries
Paytweak emphasizes the security of its system, assuring that it uses a "unique algorithm per customer" and that an encryption key is sent every hour. Customers can also access real-time feeds and reports to their administrator account to unify all their cash receipts.
The startup already works with 500 international PSPs and continues to expand its network. Available in eight languages, its solution is mainly used by manufacturers, banks, credit card issuers, international tour operators and pure players. To attract new customers, Paytweak is also banking on the price of its offer. It is marketed via a monthly subscription fee, the amount of which depends on the volume of transactions processed, whereas other players charge a commission starting at around ten euros for conventional terminals.
A €5 million fund-raising campaign
With sales of around 2 million euros in 2018, up +300% on the previous year, Paytweak expects to break even in 2019. A €5 million financing round is planned, which should enable it to accelerate its international growth, particularly in Russia, Japan and the United States, and to strengthen its workforce.