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Startup mPayy Takes on PayPal with Mobile Payments
The Chicago-based startup hopes to become an alternative to PayPal and credit and debit cards by focusing on the mobile space and charging merchants lower transaction fees.
Posted 12/ 14 10 at 4:30 PM | Business Trends, Technology, Money, Sales, International Business, Online Business, Business Products & Services, Consumer Products & Services, Financial Services, Retail, Telecommunications, Inventions & Innovations
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Just as eBay is the 800-pound gorilla of online auction sites, PayPal is the 800-pound gorilla of payment services. But Conrad Sheehan, founder of mPayy, a Chicago-based mobile payment startup, isn't all that worried about having to step out from under PayPal's extensive shadow. Instead, he is taking a different approach to payments, betting that a combination of convenience and lower fees will bring both consumers and businesses into the mPayy fold. "mPayy emerged from the need to provide a more secure and lower-cost alternative to credit and debit cards," Sheehan says.Fee Fighters
Any business that accepts credit cards or PayPal knows that they come with a price -- namely, transaction fees. In tight economic times with even tighter margins, those fees can add up fast. mPayy claims it can shave up to 50 percent off the cost of accepting payments compared to standard credit-card and PayPal fees -- transactions with mPayy run $0.20 plus 2 percent of each sale. "mPayy is completely independent of the legacy Visa/MasterCard networks," Sheehan says. Many payment services, in one way or another, basically resell credit and debit cards. mPayy users connect their bank account or a stored value account directly with their mPayy accounts. No plastic gets in between. Thus the lower fees.
Mobile Commerce Gets a Nudge
The mobile technology realm is hot, and it's not cooling off anytime soon. Sheehan's startup specializes in mobile payments -- a boost to the cell phone-as-wallet concept. mPayy accounts are linked to a mobile number, and that number and a password are all it takes to make a payment. Sheehan sees this mobile focus as key to his company's success. "If a new company can offer a better proposition to consumers and merchants, and leverage the mobile device, it can succeed on a massive scale," he says. "Mobile numbers are also globally unique and portable, making them a nice identifier."
Mobile may be key to mPayy's existence, but the company is also paying attention to all the different ways businesses need to accept payments. The merchant toolbox includes e-mail invoices, SMS invoices, Facebook widgets, iPhone and Android applications, special micropayment pricing and the ability to accept recurring or subscription payments.
Up Next: The World
Getting the mPayy name out in a market that already has dominant forces is a challenge, but it's one Sheehan feels confident about conquering. He sees a perfect storm brewing, with a growth in global e-commerce, the emergence of mobile technologies and "everyone's desire for a better deal."
Once upon a time, PayPal was a small startup, too. "I see the future of mPayy as a global payment service seamlessly and securely working across multiple channels, providing new convenience for consumers and significant savings for merchants," Sheehan says. If enough businesses and consumers are attracted to mPayy's lower fees and focus on mobile commerce, it just may become the next payment services star.
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Comments (Page 1 of 2)
Paypal has compromised my personal identity security. I will never do business with them again.
Their threats and demands are totally unprofessional....I seldom visit Ebay anymore just because Paypal has a near monopoly over both sellers and buyers.
Leftseat
Both of the above comments are not true. Have had seller rpoblems befor and both ebay and paypal were Extremely helpful in getting my issues resolved and getting me my money back. Perhaps it is all about how you approach your issue.I love this , So does My boyfriend .he is almost 11year older than me .i met him via agegapsingl es.c 'om a nice place for seeking age le ss love.which gives you a chance to make your life better and open opportunities for you to meet the attractive young girls and treat you like a king. Maybe you wanna check it out or tell your friends.. Just love it
This is wonderful news With this Ebay or Paypal sellers don’t have a chance.I have 12 ebay user ID’s and 7 paypal accounts and only through frustration and aggravation as a seller,I have learned numerous tactics from this evil entity. It is now possible for anyone to get anything free from any seller on ebay using PAYPAL through their system. Sellers are so afraid to lose their status’s using the system that they will give you anything from LCD TV’s to diamond rings just to keep selling without restrictions or facing suspension. I will be happy to inform you further on this if you email or call me on www.flashco.us. Heck, I even have a club going with members getting thousands of dollars in items free on ebay..This evil entity must and will be reckoned with through the power of free speech…Just got a free I-phone in today..gotta love it..Seller told me to enjoy it as long as i left him positive ratings…I sincerely look forward to anyone who gives these evil entities competition .Best news I've heard all day...
Paypal needs competition. Heaven help you if you are a buyer and get scammed. Paypal caters to sellers. As a buyer you are pretty well screwed if the seller protests.
I think customer service is everything, ebay and paypal has the worst customer service on the earth.
How can you categorically state that it's not true? Are you saying that no one ever has bad interactions with e-bay or pay pal?
Be clearer. It's not true from your perspective of dealing with paypal. People have problems with every company on the planet whether you do or not.
Both of the above comments are not true. Have had seller rpoblems befor and both ebay and paypal were Extremely helpful in getting my issues resolved and getting me my money back. Perhaps it is all about how you approach your issue.
PayPal sucks this new co. should make it with NO problem!
My store accepts credit and debit cards, and it costs me quite a bit, so you bet I would try another source for half the amount. Can't wait.
Half the cost? Count me in.
I agree Judy. If a Buyer changes their mind on an item that states no return, they can file a claim and state 'not as described' and when they send it back, they will be credited by Paypal and the Seller will be out the money.
Good!!! paypal needs some competition!!! Ebay ownes paypal!!! Both in same !!! Paypal only protects
seller for 15 days and then holds your money past 20 days !!! Buyer can break your personal items
sold through ebay and then dispute a claim " not as discribed" and give you your broken item back!!!!!
I GUESS YOU CAN TELL I HATE EBAY AND PAYPAL FOR MANY PERSONAL REASONS!!!!!!!
And then charge fees for sale on ebay and then charge again on paypal!!!!!!! double dipper company!!!
Paypal is owned by ebay, which allows for some luscious double-dipping in fees. I'd have to agree that paypal's customer service is just terrible. Any request, question, complaint, issue, etc. will get you a canned response; their software must just pick out a couple of keywords to choose this response. So if your issue is "I paid for something but did not get it", you're very likely to get the response that tells you "how do I pay for a purchase?" Argh!
Why doesn't everyone just go with Squareup.com? You can accept credit card payments through your smart phone and the fees are next to nothing.
sounds good but it takes 2 days to get your $$$. thats bull!! i was gonna sign up but then i read about that 2-4 day wait. at least paypal is instant. also mpayy may hold your $ for 30 days. wtf! go to mpayy.com check it out.
PAY"MORE"PAL & GREED BAY has killed the small business they tried to help in the 1990's ,, In 1994 when i started doing ebay it was great !!!
5 - 10. cents to list an item .... You could use POSTAL MONEY ORDERS only .50 cents .. now $1.35 ...In 2000 Ebay became GREED - BAY by raising everything they could every year till today even .... Cant wait to see what 2011 brings to GREED BAY .... I did ebay from 1994 until they FORCED you to use thier NEW PAY"MORE"PAL .. I even had a store on there with over 1,500 items , Which took me many weeks and hours to put up there ..
They email me telling me by a certain date in 2008, If i dont take down the words We Accept United States Postal Money and put up PAYPAL they would start to remove my items to my store ... and sure enough they started to remove my items cause I refused to use THEIR PAY"MORE"PAL .. As a 2 finger typer I wonder if they knew how long it took me to build up my store with all them items .. But did they care ?? HELL NO !! They wanted more money out of the same people who help build ebay into the empire it is today .. And even today the big boys in the company continue to make millions off the little guy trying to make a living ...
I cant wait for the day PAY"MORE"PAL & GREED-BAY has compitition and their STOCK HOLDER start to flee like the number of people have since their NEW PAY"MORE"PAL took place .. I never sold another on ebay since I started to see the cost of PAY"MORE"PAL ... All its has been is GREED GREED GREED ... And yet they buy up companies and thier ebay sellers pay for it .... Well I cant wait for the day that their kingdom falls ... I know there will be a lot of happy people .... I am 1 Of them ... So MPAYY I wish you the best , Just dont get greedy on your customers like PAY"MORE"PAL !!!!!!
Aerapay.com is an Australian startup which does traditional card processing, billing and stored value for very little cost, with the added
bonus of SMS payments if needed. Take a look! Aerapay.com
2 PERCENT? who pays 2 percent of the tranaction total to anybody? At our company we net 8 % on direct sales wheres the 2 % gonna come from? I'll tell ya right out of the fridge and the pantry.
Fuggeeddaabboouuttiitt.
PAYPAL attempted to compromise my secure bank information, bullied me with statements threatening me with exclusion from Ebay. I had a very high rating on Ebay as a buyer and always paid by credit card or personal check...never any problems. Then Paypay DEMANDED my bank account info and other secure info. This was not an example of phishing, it was actually Paypal's proxy Ebay. There must be some kind of law restricting this collusion between companies that places a required "middleman" between sellers and buyers for a transaction to take place. This smacks of a monopoly! I no longer do business on Ebay, and strongly warn others of the real security risks and identity theft risks that Paypal presents....stay away!!!
I realize that there is life outside of Ebay, but I'm betting that Ebay will not cooperate with this new company. Good luck to the newbies.