Verizon rolls out Intuit's GoPayment mobile credit card processing
Verizon Wireless (NYSE:VZ) is introducing Intuit's GoPayment credit card reader and corresponding applications across its 2,300 U.S. retail stores and B2B sales channels, promising small businesses the tools to accept and process card transactions using smartphones and tablets.
The pocket-sized GoPayment reader plugs into the audio jack of any supported smartphone or tablet, including devices running the iOS, Android and BlackBerry operating systems. Merchants can swipe consumer credit and debit cards through the reader or enter card information manually, with all transactions processed immediately and funds automatically deposited into the user's bank account within a few business days. Merchants may also choose to apply sales tax, add tips and send customized receipts via text message and email, complete with a map indicating where the transaction occurred.
Verizon Wireless and Intuit state that no credit card information is ever stored on GoPayment-enabled devices. To further secure consumer data, all transaction details are encrypted, once via the card reader and a second time via the GoPayment app.
The GoPayment reader is available free to Verizon Wireless customers with the activation of a GoPayment account and a mail-in rebate for the $29.97 purchase price. The GoPayment mobile app is free to download; the basic service includes no monthly, transaction or cancellation fees, with a 2.7 percent discount rate applied to swiped transactions. Verizon and Intuit also offer a premium version of GoPayment for $12.95 a month, applying a discounted rate of 1.7 percent for swiped transactions. Intuit will offer two months of free service to Verizon customers who select the monthly paid plan.
Best known for business and financial management solutions like QuickBooks, Quicken and TurboTax, Intuit processes annually more than $17 billion in transactions for approximately 300,000 small business partners. The company's 4 million QuickBooks users may sync GoPayment transactions with the most recent versions of QuickBooks for PC and Mac, with support extending to QuickBooks Online in the coming weeks.
GoPayment will seek to grab mindshare from Square, which supplies its own small dongle reader for processing credit and debit purchases. First introduced for the iPhone in late 2009 and later extending to the iPad and Android devices, Square charges a fee of 2.75 percent on each transaction and promises users no contracts, monthly fees or hidden costs. Square now processes $4 million in mobile payments each day.
GoPayment represents Verizon's latest push into the booming mobile commerce market. Earlier this month, the operator announced it will support American Express' fledgling Serve digital commerce platform across many of its mobile phones and tablets, enabling subscribers to make payments and redeem offers for goods and services in a matter of clicks. In June, Verizon signed a partnership with Payfone to offer one-click digital goods purchasing options.
Verizon Wireless also partners with AT&T (NYSE:T) and T-Mobile USA to spearhead Isis, the nationwide Near Field Communications-based m-commerce network slated to roll out trials in Salt Lake City and Austin, Texas, in early-to-mid-2012.
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