Payments and data API fintech Stitch today announced the launch of its linked-account payments product, LinkPay. With LinkPay, businesses in South Africa and Nigeria can accept secure, one-click payments directly from a user’s financial account.
The funds expertise is as handy as that of a tokenized card however comes with out excessive charges or chargebacks. LinkPay could be built-in alongside Sew Payouts and Monetary Knowledge merchandise to allow a whole linked-account journey, together with verified funds, refunds and withdrawals.
Conventional cost strategies are now not assembly the wants of Africa’s shoppers, who demand sooner, extra handy and safer methods to pay. As effectively, companies face lengthy settlement instances, excessive charges (as much as 3.5% in South Africa) and chargebacks from card transactions, and excessive charges of fraud, impacting their capacity to develop. In South Africa, fraud dedicated on debit playing cards was about R520.5 million in 2020.
Furthermore, cost by guide financial institution switch is onerous and high-friction and repeat transactions require shoppers to log in and provoke funds uniquely each time.
Due to this fact, Sew an API fintech firm that helps companies extra simply launch, optimize and scale monetary merchandise in Africa has arrange its linked-account funds product, LinkPay to assist remedy this drawback.
Sew LinkPay addresses these challenges with a more cost effective, frictionless and safe funds product that tokenizes consumer monetary accounts to allow one-click funds (generally known as Instantaneous EFT in South Africa and pay by financial institution in Nigeria):
● One-click funds for returning customers: Returning customers can select to hyperlink their monetary accounts as a default cost methodology by logging in through Sew as soon as, and may high up or checkout in a single click on each time after – no-repeat login required
● Hyperlink and pay later: Customers can pre-link an account and are available again anytime to make a cost. That is helpful for merchandise similar to scan-to-pay apps, funding choices, and any fintech utility that entails repeat transactions from the identical main monetary account
● Verified funds: As soon as a consumer’s account is linked, LinkPay could be mixed with Sew Monetary Knowledge to reference account particulars similar to identify or ID for verified funds with diminished danger of fraud. As well as, balances and transactions historical past can be checked for ‘good’ funds that fail much less.
● Seamless payouts over API: Combining LinkPay + Sew Payouts allows customers to obtain refunds or make withdrawals to the identical verified account used for a pay-in
Commenting on the product launch, Junaid Dadan, Chief Product Officer at Sew, stated: “With LinkPay, Sew can allow companies to supply a extra frictionless and safe funds expertise, making it simpler than ever for his or her prospects to pay – and saving on prices.
Mixed with Sew Monetary Knowledge and Payouts merchandise, LinkPay provides a really distinctive closed-loop linked-account expertise for returning customers – from quick, seamless onboarding, to one-click funds and payouts.
Because of this, companies will see greater conversion charges, a discount in prices and finally a extra handy expertise for his or her customers.”
Core use circumstances for Sew LinkPay embody:
● Fintechs: Returning customers for digital wallets, funding and financial savings apps, scan to pay options and extra could make quick, safe deposits, pay for providers and withdraw funds each time they want, through the identical verified monetary account
● Marketplaces and platforms: Customers can hyperlink a checking account to their ride-hailing, supply, or market profile for fast checkouts, and suppliers can receives a commission same-day
● E-commerce companies: For e-commerce companies that allow logged-in checkouts, returning customers pays with one click on through their saved cost methodology
Companies eager about integrating Sew LinkPay can entry check credentials and get began in minutes through the Sew self-serve platform. For the subsequent three months, companies in South Africa integrating Sew LinkPay can even entry Monetary Knowledge without charge.
Sew emerged from stealth in February 2021 and expanded into Nigeria in October 2021. The agency raised $21 million in Collection A funding in February 2022. Backers embody PayPal Ventures, TrueLayer, firstminute capital, The Raba Partnership, CRE Enterprise Capital, Village International, Zinal Progress (the funding automobile of Checkout.com founder Guillaume Pousaz) and angels together with founders and early builders from Chipper Money, Monzo, Venmo, GoCardless, Plaid, Unit and extra.
Sew options dramatically cut back the trouble required for companies to hook up with their customers’ monetary accounts, to allow on the spot, safe funds and payouts and entry to monetary knowledge.