U.S. merchants now may process magnetic stripe, e-commerce and EMV chip-and-PIN payments using Yespay International Ltd.’s cross-border payment service, the London-based company announced on May 4.
One observer, however, believes the product faces limited merchant demand.
Emboss, Yespay’s cross-border payment service, is designed to manage the authorization routing and settlement of EMV credit and debit card transactions. The service also includes such security features as point-to-point encryption and tokenization, which means no credit or debit card data are exposed to merchants or transmitted over unsecured networks, Yespay said in a news release.
Thus far, U.S. merchant processors Chase Paymentech Solutions LLC and First Data Corp. have certified the product.
London-based Yespay is providing its Emboss service to vendors that sell payment acceptance to merchants operating in both the U.S. and Canada.
Yespay’s cross-border payment service most likely will resonate with merchants in border areas or tourist locations, where international consumers are using EMV cards, Rick Oglesby, a senior analyst with Boston-based Aite Group LLC, tells PaymentsSource.
Otherwise, many large U.S.-based merchants already have EMV capabilities within their point-of-sale systems but do not use them, Oglesby says. “And I don’t foresee EVM becoming significant in the U.S. unless it becomes a legislative rule,” he says.
Merchants pay a one-time set-up fee plus a monthly fee per point-of-sale system or e-commerce website instead of per click or individual transaction, Yespay said. Merchants also do not need to pay a licensing fee. Yespay would not provide the specific amounts merchants would pay.
The point-of-sale integration takes less than four weeks and enables payment-acceptance vendors to forgo EMV end-to-end bank testing, which often can be costly, because the service is EMV chip-and-PIN pre-accredited with major acquirers in Europe and North America, according to Yespay.
Yespay in June first announced its plans to offer Emboss to U.S. merchants to help lower processing costs and reduce their exposure to fraud by processing EMV card payments (
Yespay last year also became the first hosted EMV payment-service provider in Canada (
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