PayStand, an e-commerce gateway for alternative and traditional forms of payment, announced that is bringing up its API (Application Programming Interface) which according to it supports payments with credit cards, e-checks and Bitcoin. The company says that the API will allow developers of mobile and e-commerce sites to “re-imagine financial systems.”
Jeremy Almond, co-founder and CEO of PayStand believes that developers can access tool sets from traditional players pretty easily; however, may not be so much for alternative forms of payment. He added that more and more developers are flocking to the e-check rails and developers are building new billing, invoicing and payroll type services.
The company which was formed last year has been running pilots with developers all summer wherein it built apps on top of its API to support different payment networks and types. With all these applications the company aims to make payments more efficient and cheaper for merchants.
PayStand believes that digital checks have been a ripe space for startups to innovate in as according to it the big technology companies such as Amazon, Apple and PayPal work on their own mobile wallets. Also, it believes that billions of dollars gets sent via check still, especially in business-to-business payments and for that reason a lot of scope for its app.
Moreover, as businesses with large invoices don’t want to accept a credit card because of the transaction fees, Almond says that with a 3% interchange fee, the recipient would be charged $300 on a $10,000 payment. However, when it is compared with fees for an e-check or automated clearinghouse (ACH) payment it is higher.
No Transaction Fees
Almond believes that as virtual-currency technology is also getting traction in the mainstream financial market, PayStand is seeing both enterprise and loyalty companies building on top of Bitcoin’s Blockchain system. Currently, PayStand deals with all PCI compliance concerns and tokenizes card data so the merchant has a lower PCI burden.
The company believes that as it has partnerships with the top ten banks in the world, businesses working with it are not actually transferring the money themselves. Therefore, according to the company it is not necessary for them to comply with money transmitter requirements.
As PayStand claims that it hates transaction fees and does not want users to have to pay them again, a lot of users who wish to save some money would prefer its solutions.
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