Visa, startup iZettle settle mobile payments issue
To start accepting Visa payments in the Nordic countries, iZettle had to introduce a third payment method
IDG News Service - Mobile card payments startup iZettle has settled its payments dispute with Visa Europe and can now accept Visa payments in Norway, Finland and Denmark, the company announced on Tuesday.
To accept Visa, iZettle had to add a new method for mobile payments to its service.
iZettle is a Swedish mobile payments startup that wants to help small merchants like plumbers, gardeners and housekeepers start accepting card payments with their smartphones. While announcing its official out-of-beta release in the Nordic countries, iZettle also announced it could start accepting Visa payments again.
"Visa acceptance in Denmark, Finland and Norway has been restored, as it was shut down by Visa Europe in August 2012 due to a policy decision," said iZettle spokeswoman Wilhelmina Douglas in an email. The Visa Europe spokesman did not respond to questions when asked if security issues were involved in Visa's decision to clock services to iZettle.
To accept Visa payments in the Nordics, iZettle had to introduce a third payment option. Instead of using a chip-based card reader, Visa customers enter their phone number in the iZettle app on the merchants' phone and will then, via a text message, be directed to a secure site on their own smartphone where they can input their card details in a form. The customer gets an onscreen confirmation if the payment is accepted and the merchant receives a notification in the app that the sale has gone through.
"It's not our preferred solution, but it is compliant with all Visa Europe's regulations, so that's the way we have to do it to enable users to accept Visa cards," said Douglas, adding that the Visa-approved method of paying in Denmark, Finland and Norway is "not as easy as a regular payment with iZettle."
In a regular iZettle payment, customers slide their card into a card reader that plugs into the merchant's smartphone, after which they tap "pay" and sign for the transaction on the smartphone screen. Alternatively, if the merchant does not have a card reader, he can choose a manual card payment where the customer's card number, validity and cvc number have to be entered.
Visa Europe has issued its own guidelines for transactions in certain countries, Douglas said, adding that branches of the company are less strict in other countries. "We've always had a positive dialogue with Visa Sweden and they have decided to approve our service for use here," she said.
"We are continuing to work with iZettle to develop a fully Visa Europe compliant mobile point of sale solution," a Visa Europe spokesperson said in an email. "In the meantime iZettle merchants can support Visa card acceptance through an e-commerce transaction on the cardholder's phone."
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- The Critical Role of Support in Your Enterprise Mobility Management Strategy Most business leaders underestimate the importance of tech support when they choose an EMM solution. Here's what to put on your checklist.
- Separating Work and Personal at the Platform Level: How BlackBerry Balance Works BlackBerry® Balance™ separates work from personal on the same mobile device, right at a platform level. Find out how it can work for...
- Protection for Every Enterprise: How BlackBerry Security Works Get an IT-level review of BlackBerry® Security, addressing data leakage protection, certified encryption, containerization and much more.
- Future Focus: What's Coming in Enterprise Mobility Management (EMM) Find out why Enterprise Mobility Management (EMM) solutions that are truly future-ready must be designed to enable Machine-to-Machine (M2M) capabilities and much more.
- Live Webcast On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Live Webcast Unmasking the Differences between Consumer and Enterprise File Sync & Share The consumerization of IT combined with the rapid pace of the modern mobile workplace is forcing enterprise IT teams to evaluate file sync...
- Live Webcast Workforce Mobilization for Improved Productivity A mobility research director from Aberdeen discusses reasons for extending legacy applications to mobile devices, and an integration strategist from Attachmate shows how...
- Getting Ready for BlackBerry Enterprise Service 10.2 Find out how BlackBerry® Enterprise Service 10 helps organizations address the full spectrum of EMM challenges, while balancing the needs of both the...
- Containerization Options: How to Choose the Best DLP Solution for Your Organization This webcast outlines a framework for making the right choice when it comes to containerization approaches, along with the pros and cons of... All Mobile/Wireless White Papers | Webcasts