Payments app VibePay is hoping to attract people who sell goods through online platforms such as eBay, with its new request-for-payment service, which eliminates payment processing fees.
The app offers an economical way for users to request payments from anyone – not just their contacts – directly from their bank account.
The service will speed up the time sellers get paid from days to “just seconds”, the company has claimed.
“Our community are telling us that they’re getting ripped off when they sell their goods online – not only paying extortionate fees but having to wait days, sometimes weeks to receive payment into their bank account,” Luke Massie, founder and CEO of Vibe, said in a media statement.
“With our new payment offering, we’re putting an end to seller payment fees and waiting times. This update is giving our users even more ways to requests payments from people using the VibePay app.”
Vibepay’s research found some providers charging up to 3.4 per cent for each transaction. Sometimes, this wasn’t purely on the items sold, but across the combined sales, price and postage costs. Some payment providers even held funds for up to 21 days.
The number of ‘social sellers’ – such as those who sell online through sites like Depop, Ebay and Gumtree – is growing rapidly, with the second-hand resale market expected to reach $51 billion in the next five years.
In the VibePay app, users can create a payment request for the amount they need to get paid and generate a unique, secure link.
This link can be shared on apps such as WhatsApp or through the platform they’re selling on with anyone they want to request a payment from. The recipient is then taken to the VibePay app where they can complete the payment securely from their linked bank account.
As the link does not expire, users can take the same payment amount from several people in a group or when selling items online.
Vibe users will benefit from a newly revamped activity page to keep track of who has paid them through each link, and who still owes money.
“Open Banking is allowing us to eliminate the middlemen who have dominated the payments space for years and offer consumers a fast, free way to request payments online,” Mr Massie said.
“The VibePay app is just the start for us. Our vision is to use our unique payment platform and technology to enable any business to deliver a unique experience for consumers, wherever they shop online.”
Since the firm launched six months ago, more than £1 million has been requested through the app, a figure Vibepay expects to triple in the next few months.
The company has established partnerships with major UK banks such as Lloyds Banking Group, Barclays and Santander. It has acquired licences to enter new markets across Europe including France, Luxembourg and Germany, which will be rolled out in the coming weeks.