Another vendor is making card present payment capability available to iPhone users. App Ninjas, a software company that’s had a CNP payment app on the market, has brought forward an Apple-approved payment sled to drive its sales. Apple likes the device because it connects to the iPhone via the proprietary Apple connector. Apple collects a $4 royalty (or thereabouts) for each device. Rumor has it that Apple is considering banning card swipe devices that connect via the audio headphone I/O port. They can’t collect royalties on that interface. That decision would put a world of hurt on Square whose entire card swipe premise is based on its cheap, audio I/O port device.
The Swipe white-label solution enables Independent Sales Organizations (ISOs), banks, and other merchant-focused companies to offer their customers a complete credit card processing solution for iPhone, iPod touch, and iPad. Partners’ customers process cards through a custom-branded app, newly enhanced to support the Credit Card Swiper for full retail support.
“As conventional mobile terminals are being replaced by smart phones, ISOs and banks want to get to market with their own branded mobile processing solutions,” says John Waldron, CEO of App Ninjas. “Now that we’re offering an iPhone swipe accessory, they can quickly reach the market with a turnkey solution for retail transactions — saving them the expense, hassle, and compliance reviews of rolling and their own solution.”
Swiping cards offers merchants lower rates, when paired with a retail merchant account, and reduces the time required to process each transaction.