10 February 2009
Noca, the new online payment company has launched a beta version of its brand new online payment system. The Californian startup company which is run by ex Visa executives offers online shoppers a means of paying directly from their checking accounts as opposed to using a credit card.
If you've ever sold anything on Ebay, you will have an idea of the percentages merchants have to hand over to companies like Paypal or the buyer's credit card company. Fees are usually around the 2-3% mark and for online retailers who operate under very slim margins anyway; this can knock a significant chunk out of the profits.
Noca, seeing a new opportunity here, is offering merchants a new payment method that will only charge merchants a fee of .25% for transactions; a mere fraction of the cost of its competitors.
For the consumer, Noca is pitching security and safety when shopping online. Unlike other payment systems, Noca allows customers to securely pay the merchant from their bank account through "secure checks".
Most e-payment systems rely on credit cards. Noca, on the other hand, uses debit transactions, taking money directly from the consumer's bank account. Noca believes this new system offers a safer means of online shopping that will make customers less susceptible to online theft and identity fraud.
To boost safety further, Noca also sends the customer a unique code via text message which will need to be entered online in order to complete the transaction.
Having originally made a name for itself through e-payment Facebook applications such as OneClickPay and HelpYourWorld, Noca is no newbie to the world of e-payments, but whether it can rival the likes of Paypal is another matter entirely.
It's fair to say that Noca's payment system makes logical sense to both merchant and shopper. Of course, merchants are only likely to adopt the system if it is popular with consumers.
While safer shopping is certainly a good selling point, the question is whether, even in a cash-strapped economy, will shoppers be able to completely move away from using credit cards?
Could Noca become a threat to Paypal?
Noca, the new online payment company has launched a beta version of its brand new online payment system. The Californian startup company which is run by ex Visa executives offers online shoppers a means of paying directly from their checking accounts as opposed to using a credit card. If you've ever sold anything on Ebay, you will have an idea of the percentages merchants have to hand over to companies like Paypal or the buyer's credit card company. Fees are usually around the 2-3% mark and for online retailers who operate under very slim margins anyway; this can knock a significant chunk out of the profits.
Noca, seeing a new opportunity here, is offering merchants a new payment method that will only charge merchants a fee of .25% for transactions; a mere fraction of the cost of its competitors.
For the consumer, Noca is pitching security and safety when shopping online. Unlike other payment systems, Noca allows customers to securely pay the merchant from their bank account through "secure checks".
Most e-payment systems rely on credit cards. Noca, on the other hand, uses debit transactions, taking money directly from the consumer's bank account. Noca believes this new system offers a safer means of online shopping that will make customers less susceptible to online theft and identity fraud.
To boost safety further, Noca also sends the customer a unique code via text message which will need to be entered online in order to complete the transaction.
Having originally made a name for itself through e-payment Facebook applications such as OneClickPay and HelpYourWorld, Noca is no newbie to the world of e-payments, but whether it can rival the likes of Paypal is another matter entirely.
It's fair to say that Noca's payment system makes logical sense to both merchant and shopper. Of course, merchants are only likely to adopt the system if it is popular with consumers.
While safer shopping is certainly a good selling point, the question is whether, even in a cash-strapped economy, will shoppers be able to completely move away from using credit cards?
English
German/Deutsch
Norwegian/Norsk
Swedish/Svenska
Italian/Italiano
French/Français
Spanish/Español
