Excluding QR payments alienates customers, says tomato pay
Launched at the end of June 2021, tomato pay (named simply after two things the company loves) is motivated by bringing fun, transparency, and convenience to the world of payments.
Source: tomato pay
At a time when 35% of customers determine where they shop by the availability of non-cash payment options and 61% are more conscious about personal hygiene because COVID-19, the company is determined to make sure small businesses don’t fall behind.
According to tomato pay, 20% of consumers would avoid small businesses if they only transacted using cash. Indeed, 53% of cash reliant merchants have confirmed that this is the case.
What are the alternatives?
Although the argument for exploring alternative payments is sound, small businesses are frequently met with obstacles that make implementing them too impractical. The downsides include:
- ATMs: Charge transaction fees and take up physical space
- Contactless card: Expensive per-transaction costs
- Invoices: Can harm cash flow if not paid on time
- Bank transfers: Introduce potential for human error while copying customer details
Therefore, the majority of alternative payments lie outside the bounds of feasibility for many small businesses. However, tomato pay is championing a solution that promises to address these issues: QR codes.
According to tomato pay’s Founder and CEO Nicholas Heller, “there is clear support for QR code based payments that are far cheaper for small businesses to implement, with 40% of people saying they’d find it easier to pay a small business using a QR code.
"tomato pay is an app designed specifically to support small business owners and remove the headache of finances - starting by ensuring that more of a payment goes to the business and not their payment providers.”
Pictured: Nicholas Heller, CEO and Founder
Faster, safer, more convenient
The process of paying by QR code is simple: customers scan a code using their phone’s camera and follow a payment link. From there, they select their bank and confirm the transaction; no third-party app is required.
By using this very easy method, customers and merchants have a reliable, safe, and affordable method for completing mobile-based purchases.
“Community has never been as important as it is today and watching the business and sole trader community struggle throughout the pandemic has spurred many of us to support our local communities and businesses, but people still want to be able to pay how they choose,” added Heller.
Furthermore, there is already a receptive market for this method; tomato pay found that 42% of people stated payments would be much easier if they relied solely on scanning a QR code. This is a boost of customer convenience that small businesses will really need in the post-COVID economic recovery.
tomato pay is an app currently available to businesses and sole traders. The download itself is free, features no card minimum fees or chargebacks, and facilitates easy refunds and transaction confirmation
Nymbus enters strategic partnership with Plaid
Nymbus, a leading provider of banking technology solutions, has partnered with Plaid, a data network powering the digital financial ecosystem, to more instantly authenticate and fund customer bank accounts for financial institutions.
This new integration will allow Nymbus bank and credit union clients to securely onboard new users in a matter of seconds, which in turn translates to more active and engaged banking experiences. Plaid’s data network enables consumers to connect their financial accounts at over 11,000 institutions globally to more than 5,000 digital finance apps, including leading payments, investing, and budgeting tools.
What are the benefits of the integration?
Benefits of the Nymbus and Plaid integration for financial institution customers include:
- Improve user identity verification and reduce fraud.
- Instantly authenticate and link members’ bank accounts.
- Streamline ACH transfers between any bank or credit union in the US.
- Access and analyse comprehensive transaction data.
- Validate real-time account balances to protect against overdraft and enable account pre-funding.
“As more consumers than ever before rely on digital finances for their everyday lives, financial institutions need to meet their customers where they are while supporting safe and reliable money management experiences,” said Sarah Howell, Chief Alliance Officer at Nymbus. “Our expanding network of partners are important contributors to Nymbus’ combined portfolio of the technology, people and process available to quickly innovate with new routes to market and revenue streams.”
Continuous growth and expanding partnerships
Founded in 2015, Nymbus has continued to grow. Most recently the company has closed a new round of financing led by the Curql Fund. The US$5 million investment will be used towards Nymbus CUSO and accelerate a shared commitment to breakthrough technology for ensuring continued growth and stability for the credit union community.
Nymbus CUSO was founded in March 2021 to help break through barriers to growth, and its mission is to connect credit unions with trusted fintech offerings that both simplify technology delivery and enable new digital revenue opportunities.
Last year Plaid set a goal to move 75% of its traffic to APIs by the close of 2021, calling it “one of our top priorities as the industry moves full-steam ahead toward a fully digital financial system.”
Recently it has announced an open finance partnership with Capital One, a digital finance innovator, and the successful completion of its migration to the Capital One API. They have also completed or have in-motion data access agreements with major US financial institutions, including U.S. Bank, JPMorgan Chase, Wells Fargo, and others.