A pioneering new cross-border mobile and web payment instrument for consumers and businesses – that will eradicate the need for cash and cheques – developed by Realex has been licensed by the Financial regulator, it emerged this morning.
Carapay is an online payment account or payment instrument – it is a new way to pay and be paid. It opens up a promising new export model for Realex as the Carapay licence may be “pass-ported” to other EU states.
“For several years now, we have been waiting for a new regulatory environment that would allow us to enter into payment processing in a more significant way,” Carapay founder and CEO Colm Lyon said.
“That has now occurred with the Payment Services Directives taking effect and become law in the EU last November. We have always believed that bringing new payment instruments and players into the industry is really important to grow innovation and to bring choice to consumers and businesses alike when it comes to paying and being paid. Our mission is to give consumers and businesses a better way to pay and be paid.”
Carapay is one of the first new companies to be awarded a licence under the Payment Service Directive (PSD) which allows new companies into the European market without having a banking licence.
The company confirmed it has now been awarded a Payments Institution licence and that it will launch in early 2011.
Carapay will be accessible anytime, anywhere, using any web or mobile device, where people can pay each other, pay businesses and shop online – safe, secure and in real time. Carapay can be used to pay bills, club memberships, school fees, dinners with friends or any other type of money transfer normally conducted using cheques or cash.
Consumers will be able, via mobile and web applications, to pay other users money in real time, securely, safely and for free.
Designed like a social network, Carapay will allow users to set up trusted relationships with their “circle” of friends, forming the CaraCircle. Consumers will be also able to use Carapay to shop online, they can choose to pay by Carapay, eliminating the need for entering their credit/debit card details on web sites.
Businesses can register online and start accepting payments via Carapay almost instantly, enabling them to accept payments electronically from their customers. It will reduce the need for cash and cheques (more than100 million are written in Ireland).
For online retailers, it will significantly reduce costs and issues around risk, security and fraud, while opening up online shopping to people who don’t have cards or don’t wish to use their cards online.
