Jumio, an online payments startup firm, is about to make a splash in the mobile payments technology world as it rolls out a new program called Netswipe that lets anyone with a webcam accept credit cards.
Small business owners and entrepreneurs are adapting to mobile payments because it allows them to avoid the high costs of processing credit card payments through traditional payment networks, according to Moneyland.Time.com. Netswipe allows merchants to use a webcam from either a computer or a smartphone to read a customer’s credit card.
The technology that allows Netswipe to work is sophisticated as webcams are able to perceive details like the raised lettering on a credit card to authenticate the purchase.
The web-based version of Netswipe was rolled out earlier this month while the release of the WordPress plug-in that enables the webcam technology was released last week. Apps for iPhone and Android platforms will be available within the coming weeks, according to Moneyland.Time.com.
Jumio is based in Silicon Valley, Calif., and was founded by Daniel Mattes who also founded Jajah, a Voice over IP provider.
Mattes said Netswipe eliminates the risk of credit card fraud by giving the recipient proof that the card is actually held by the cardholder, according to Moneyland.Time.com.
At a 2.75 percent cost for processing a Netswipe transaction, merchants will pay more compared to transaction rates for debit or credit cards. Merchants do not, however, have to pay the monthly fees that they would have to pay an ordinary network processor.