Braintree takes on PayPal for e-commerce payments in Australia
- 16 November, 2012 11:49
A US e-commerce company targeting startups has entered Australia with aims to beat the likes of PayPal and major banks.
Braintree launched its payment platform in Australia earlier this week. The service lets merchants accept payments online or through a mobile device, but not in-store payments. The platform handles more than 130 currencies and provides PCI compliance. The US company is now in 30 countries and clients include Rovio, Airbnb, LivingSocial and 99designs.
The company has entered Australia because it’s a “fast-growing e-commerce market” with many “great tech companies”, and because mobile penetration is high, Braintree CEO Bill Ready told Computerworld Australia.
Also, Braintree saw a gap in the market serving startup companies, Ready said. “It’s a wasteland in terms of payment services, particularly for startups.”
“PayPal really had been the only choice for startups” besides the large banks, Ready said. But the banks aren’t “really geared toward startups,” he said.
“We want to make it simpler and cheaper,” Ready said. Braintree avoids “fine print” and “hidden fees” present in rivals’ offerings, he said. However, Ready acknowledged that regulations in Australia will partially control how low Braintree can price its service.
Unlike PayPal, Braintree gives merchants full control over the checkout experience and does not force them to forward customers to a separate payment website, even though it’s Braintree and not the merchant handling credit card information, Ready said. “You don’t see someone else’s brand in your checkout.”
PayPal recently announced a move into in-store payments, but Ready said Braintree is 100 per cent e-commerce and plans to stay that way.
“There are a lot of players chasing in-store and [who] think about mobile payments as using a phone in a store to tap to pay,” he said. “However, I don’t think there’s really a major pain point in the store today. You can create new experiences, but new experiences get adopted slowly.
“Solutions to pain points get adopted very quickly and the place where we see a massive pain point” is e-commerce shopping on a mobile device, he said. People are much more likely to abandon an online purchase on a mobile device than on a desktop or notebook computer because the checkout experience is not optimised for mobile, he said.
Braintree has interest in the mobile digital wallet space, acquiring Venmo in August for $US26.2 million. Venmo is a digital wallet that lets users store all of their credit cards.
However, unlike companies such as Google that is looking to enable in-store purchases with mobile wallets, “we are focusing our efforts on e-commerce,” Ready said.
Ready said the winner of the digital wallet wars will be the company who offers the best e-commerce experience over the next couple of years. “If you win there, you then can use that to create experiences in the store.”
Ready cited what Apple did for mobile application development as a role model for Braintree’s payments business.
“You could build mobile apps in 2003, 2004, but not a lot of people did” because it required technical knowledge of devices and wireless networks, Ready said. “Apple made it so you could build a mobile app and not have to know anything about cellular signal or the hardware of the mobile devices. The result of that was an explosion of mobile innovation... We want to do that for payments.”
Follow Adam Bender on Twitter: @WatchAdam
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
- Private Cloud Computing - Agility and Affordability
- ‘The Enemy Within’ Report
- Transforming SIEM into an Early Warning System For Advanced Threats
- Building Maturity and Experience in Successful Virtualisation Strategies
- IDC Research: Leveraging the Benefits of Cloud Computing with Specialised Security
Why IT projects really fail
Queensland government to provide 200 services online by 2015
Call Centers Suffer From Big Data Overload
CIO 100: Carsales wins top gong for innovation
How to secure passwords and other critical numbers
Virtual Server Backup Software Buyer’s Guide
Virtualization affords organizations multiple opportunities to reduce power, optimize hardware utilization, improve application availability and ultimately drive down costs. In light of its benefits, it is no surprise that virtualization penetration has surpassed 50% of all server workloads and continues to grow. In this guide, we evaluate prominent virtual server backup software solutions and identify their strengths and weaknesses.
Casestudy: Managing an Antivirus Service and Improve the Customer Experience
Anittel Group has provided managed technology and connectivity services to organisations for more than 15 years, expanding to become one of the world’s largest full-service, IT and telecommunications companies. Previously, Anittel deployed an in-built antivirus solution as part of its managed service offering, which addressed a number of its customers’ needs, except for individual malware infections, which occurred as often as a several times a week. In this case study, find out what they did to solve this problem.
Efficient Data Management in Three Simple Steps
Gartner reports that Business Intelligence, Mobile Technologies and Cloud Computing rank 1-2-3 as the 2013 Global CIO Technology Priorities. These three trends, labelled the “Perfect Storm” of new technologies, are transforming every link in the IT value chain, promising to deliver more efficient, responsive and dynamic IT operations. But this also means massive shifts in the way IT applications and services are created, deployed and maintained. This whitepaper aims to help you begin the journey to efficient modern data management