Accepting debit and credit cards in Ireland is mandatory nowadays. Even though some street vendors are still taking only cash in hand, when it comes to formal business and professional services, you can buy almost anything across the country without one single note in your pocket. And this is true even for small amounts, with contactless payments getting more and more common for under € 20 transactions.
Despite of this scenario, small business are still facing high costs and complicated contractual agreements when trying to get a card machine from AIB, Bank of Ireland, Ulster Bank and other merchants banks or services. Fees vary accordingly to annual revenue, and from business to business, making hard to predict how much you will be spending over the year. You also have to pay to set up the system, plus for a monthly rental fee, and for a minimum monthly usage fee.
And it is also possible to say that start ups and new entrepreneurs in general might be postponing starting their business, or growing them, due to the fact that they must accept credit and debit cards, but they can’t afford the costs and remain competitive at same time.
Mobile payment solutions could be about to change all of that. All you need to accept payments is a smartphone and an mPOS terminal. They offer a number of advantages over traditional services, including lower overall costs for some businesses and simpler accounting as well as easier management through mobile apps. As of June 2015, there are currently two main alternatives in Ireland for mobile card transaction services, which we will now introduce.
SumUp: A cost-effective solution for small business in Ireland
SumUp has been offering its mPOS solution in Ireland since 2012. The beauty of SumUp lies in its simplicity and transparent pricing. There is no minimum commitment or monthly fee, just a flat fee of 1.95% for all transactions.
To get started, you need to register an account online, and then buy the mobile terminal (€79.00 before VAT) which is compatible with both iOS and Android devices.
As for cards, both debit and credit are supported, including Visa, Mastercard, V-Pay and Maestro. American Express is not currently available – something which SumUp is said to be working on. When a transaction occurs, you receive the money (minus the 1.95% rate) within 3-6 working days.
Payments are usually verified via a PIN code, but in some cases the customer will be prompted to provide their signature on the screen of the terminal. This will depend on the configuration of the customer’s card.
All in all, SumUp represents a compelling solution for small businesses in Ireland who are considering introducing card payments or for those who want to streamline their current operations.
Payleven: A viable but more expensive payment solution
Payleven is a mobile payment operator based out of Berlin and London. The German company launched its Irish service in March 2015, offering a mobile terminal and mobile app (compatible for iOS and Android).
The service is largely comparable with SumUp, with its higher fee (a flat 2.75% per transaction) being the most noticeable difference between the two. Like SumUp, there are no monthly fees or minimum commits. Uber competitor Hailo has used Payleven’s mobile payment terminals in its Irish taxis since January 2015.
To sum up, Payleven is another solid choice but from where we are standing, it’s hard to justify the extra 0.80% compared to SumUp, especially when Payleven offers more reasonable sliding pricing structures in other markets such as the UK.
iZettle coming soon to Ireland?
Notably missing from the Irish equation is iZettle. The Swedish industry leader offers a contactless card reader in the UK, making transactions even easier for end users and thereby tends to induce higher spend per consumer. iZettle has received mostly positive reviews wherever it has launched (a total of 11 countries as of June 2015). So far, the company has stayed quiet with regards to its plans for Ireland, but many will be hoping that the Irish launch date is sooner rather than later.
These are exciting times for the international mPOS market. Irish small businesses should review their card payment policies if they haven’t already – now is a better time than ever to take action and capture new customers!