Fiserv Launches Answer to Square
A new service from Fiserv Inc. promises to give credit unions a more active role in the revolution that is significantly expanding consumer payments in the U.S.
SpotPay is a merchant payments option inexpensive and portable enough to make accepting credit and debit cards possible for a much larger number of merchants and credit union members, the company said.
“I think in effect we are seeing a revolution in what is meant in the term 'merchant',” explained David Keenan, general manager of network services for Fiserv in Brookfield, Wis. “Now, with SpotPay, your babysitter can take debit card payments at the end of the night.”
SpotPay is much like Square, another merchant processing solution that is effectively expanding the footprint for credit and debit card payments. SpotPay uses a mobile phone based technology with what Keenan claimed is a better and more secure card reader and a phone app which carries the partnering credit union's name and logo.
Also, SpotPay has a low barrier to entry: $8.95 per month and a 1.99% interchange fee to the merchant.
In addition, the service is branded to the partnering credit union and provides the credit union a share of the interchange income the company earns with every transaction, making participating credit union both the recipient and payer of card interchange.
“I think credit unions have begun to look at small business members a bit differently,” Keenan said, adding, “We decided to begin offering this service when it became clear that credit unions were at risk of seeing members go to other providers, other financial institutions or processors, seeking these services.