Adyen readies mobile payment service for big retail stores

The service, aimed at European retailers for now, is compatible with the Android and iOS mobile platforms

Dutch payment services company Adyen has developed a service it hopes will allow sales staff at major European retailers to accept card payments via a mobile phone, perhaps allowing them to eliminate dedicated cashiers.

In contrast to European mobile payments startups such as iZettle, Elavon and Payleven, or the U.S. company Square, Adyen isn't targeting small merchants such as plumbers and taxi drivers.

Instead, it plans to offer its mobile phone payments service to large and medium-size retail chains, said Roelant Prins, Adyen's chief commerce officer.

The company has developed a mobile terminal, The Shuttle, that connects to iOS and Android devices using Bluetooth. The terminal can handle payments from chip-and-PIN cards or those with magnetic stripes, and because Adyen is a member of Visa and MasterCard, it can make the service available for all European countries at once, Prins said.

This too is different from the other mobile payments companies in Europe. Payleven for instance recently said it would start offering chip-and-PIN payments in the U.K., Germany, Italy, the Netherlands, Poland, while Elavon expanded its chip-and-PIN enabled MobileMerchant service from the U.K. to Ireland.

Adyen has been offering online payment services to companies including KLM, Vodafone and Dutch department store De Bijenkorf for some time, said Prins. "We see that big retailers are working on solutions to take the traditional counter out of the shop," he said.

De Bijenkorf is testing the mobile technology, said Prins. There are several other interested parties including "a big international hotel chain" that could not yet be revealed, he added.

Adyen offers a Shuttle terminal for ¬99 (US$129) up front, a fee of ¬10 per terminal per month and a commission on each transaction. The fee for credit card payments will be 1.4 percent, while a debit card transaction will costs about ¬0.14, Prins said, adding that the costs can vary.

Payleven, for example charges ¬0.09 plus 2.95 percent of the transaction value for its magnetic stripe transactions, with no monthly fee, while Elavon charges a £25 (US$40) one-time setup fee and £10 a month for PIN pad rental, plus a 2.95 percent transaction fee for its chip-and-PIN service. IZettle has no monthly fees and charges 2.75 percent of every payment made.

"Our product could be interesting for the so-called 'micro merchants'," that are targeted by the others, Prins said. However, Adyen isn't going to compete in that market but would rather allow other parties to buy a license, he added. "We are actively looking for partnerships," he said.

Adyen will focus on Europe for the moment, Prins said, although it has offices in U.S., Brazil and Singapore among other places.

Because of the pricing, Adyen has the potential to be disruptive to the likes of Verifone, a big player in the point-of-sales terminal market, said Alex Kwiatkowski, research manager at IDC Financial Insights.

In the retail store market it probably wins over the competition because of its price, "which is a lot lower than going for one of the more traditional point of sale equipment manufacturers," he said.

Adyen's timing is also good, because larger retailers are looking for new ways to sell during the economic crisis, he said.

Apple was one of the pioneers in giving sales staff a means to take card payments. "But just because this works for Apple doesn't mean that it is going to work for every retailer," said Kwiatkowski, adding that he expected it could work well for high end retail stores.

"It is not a revolution that is going to change retailing over night," said Kwiatkowski. "But I think we are going to start to see a transition."

Loek is Amsterdam Correspondent and covers online privacy, intellectual property, open-source and online payment issues for the IDG News Service. Follow him on Twitter at @loekessers or email tips and comments to loek_essers@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags retailfinanceindustry verticalsSquareiZettlePaylevenElavonAdyen

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Loek Essers

IDG News Service
Show Comments

Brand Post

Bitdefender 2019

Taking cybersecurity to the highest level and order now for a special discount on the world’s most awarded and trusted cybersecurity. Be aware without a care!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?