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Contxto – The coronavirus pandemic has put businesses in overdrive to launch new products that match these unusual circumstances. Correspondingly, fintech Clip is the latest of startups to release a new feature to make remote payments possible.
Previously, businesses relied on its physical POS terminals to process electronic payments. But last Thursday (21), the Mexican startup announced they now have a new option: “Pagos a Distancia Clip.”
As a result, through the fintech’s app, these small and medium-sized enterprises (SMEs) can now process credit and debit cards with a few taps to their phone. An entrepreneur need only introduce the amount owed into the app. The system will then generate a link that’s sent to the buyer via WhatsApp, Facebook Messenger, Twitter, email, or text.
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Once the person opens the link, it will take them to a payment portal. There, they submit their card information and complete the transaction. No need for them to download an app—which is quite user friendly.
Vendors will receive their money within 48 hours, which is definitely a big help towards achieving a healthier cash flow. In exchange for this service, Clip charges them a 3.6 percent commission over the transaction’s value, plus tax.
Clip moves at a slow but steady clip to launch
Compared to startups that developed new products in under a month, Clip has taken a little more time with its new service. But it’s easy to understand why it had to be that way.
Payment-related solutions always entail strong layers of security and fraud-prevention measures. Not to mention compliance with relevant laws and industry expectations.
In Clip’s case, the startup states its new feature fulfills Mexican regulations as well as follows US laws related to anti-corruption practices.
It’s also PCI certified—meaning it complies with international standards for credit and debit card processing. As someone who worked in compliance, I can assure you the documentation process for all of this is painstaking work.
Likewise, considering the implications of developing a solution that meshes with social media also takes a significant effort on behalf of Clip’s software developers. There’s also the matter of time.
On the one hand, its entire team may have felt the rush to create this new feature so as to add a new source of income for the fintech.
And on the other, the team can’t afford to do a sloppy job as it must stay consistent with the quality of Clip’s previous products. All in all, this service constitutes a monumental effort on the fintech’s end to push through Covid-19.
Regardless, its remote payment processor will undoubtedly outlive the pandemic.
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