PayPal might be the most prominent online payments service out there, but one company is giving it a run for its money: Noca, a new online payments startup that will give merchants a cheaper way to accept payments on their website.
Merchants that sign up for Noca’s payment services can begin accepting payments on their website within minutes. What the Menlo Park, Calif.-based start-up says sets it apart from other online payment services like PayPal is that it doesn’t require consumers to type in full credit card, debit card or check card information.
Instead, the service uses what’s called a Noca PIN customers first select prior to making their first online first transaction. Once a unique PIN is established then it can be used to make secure online payments anywhere Noca payments are accepted.
Noca says it stores all of its production data, such as checking account and routing numbers is encrypted and stored in a physically secure offsite data center, which is what makes its payment platform so safe.
According to Noca, its online payments services is ideal for merchants because it decreases interchange costs they pay for accepting online payments. To date, merchants pay roughly 2.26 percent of a total transaction amount in credit card processing fees, which excludes a $0.30 fixed cost. Through Noca, those costs would be reduced to 1.49 percent per transaction, while fixed fees would be eliminated entirely. Chargeback fees would also be eliminated as long as the chargebacks are less than 1 percent of a transaction.
If you are a merchant interested in integrating Noca’s online payment platform onto your own website then make sure to check out the company’s rates, which are compared against both a number of other online payment services including PayPal, and Google Checkout.
Noca was launched back in 2009 by former Visa Inc. Chief Network Architect and Director of Network Security Panjack Gupta, which positions it nicely to be a prominent player in the online payments industry. Yet, despite its expertise and considerably lower transaction costs, the start-up definitely has some ways to go in gaining the sort of clout seen by companies like PayPal, which announced this past June that it crossed first 100 million active accounts and that it expected to facilitate $3 billion mobile payments this year alone.