We live in a world where merchants still pay to be paid – fees between 2-5%, which are hidden from consumers, but the consumer ultimately picks up the bill.
To alleviate this issue, London fintech Agitate has got an investment of $3.5 million (£2.51 million approx) from pool of high calibre tech-savvy investors. These include Frank Schilling, a highly successful internet entrepreneur who recently sold some of his registry business to GoDaddy and Stuart Lawley. With the latest backing, Agitate is launching its innovative payment solution BOPP, with an aim to bring an end to card fraud, remove friction in digital payments, and slash transaction fees – saving UK businesses over £9bn a year.
The new payment platform from Agitate, the payment and Identity company, combines decentralised Identity, blockchain and open banking. As it uses open banking, there is no need to use payment cards, thereby making the transaction super secure.
In 2019, over £1 billion was lost in card fraud and the card, not present fraud was estimated to have resulted in a staggering £470 million. By generating a payment link from BOPP, this issue will be eliminated. This tech is secure as every bank account that requests payments is verified by BOPP directly from their business bank. The transactions made via this platform are consented to by the payee via biometrics and online bank app security.
BOPP simplifies electronic payments by making it much easier for customers to pay businesses directly bank-to-bank, cutting the middlemen. It is completely free for individuals while businesses have to pay just £10 per month to enjoy benefits such as zero transaction fees and get funds in seconds.
“We all know that paying with cash is becoming a thing of the past, and with the amazing progress in the world of payments, businesses have an opportunity to re-think how they get paid,” comments Ian Gass, CEO of Agitate, the company behind BOPP. “Every time a merchant uses BOPP, they save money, reduce fraud, and get cash in the bank immediately. If BOPP was used, the fees would save over £9bn a year. UK businesses work hard to get customers and make money, but every time someone pays using a card, they pay ridiculously high fees. It’s important to us to support UK businesses by enabling them to make more from each sale, have a stable cashflow, and have the tools they need to bounce back and ultimately thrive in these difficult times.”
How does it work?
With BOPP, a payment request can be sent in the form of a pay link via SMS, WhatsApp, email or QR code. The payment request link takes the user to the secure BOPP site, connects to the recipient’s online banking app and provides all the payee and transaction details. The payer only needs to authorise and confirm the payment with their bank. Now, the money is transferred securely in real-time sans the need for credit or debit cards.
Gains traction in charity sector
By letting UK customers to click or scan to pay sans any transaction fees easily BOPP has the potential to get traction in the charity sector. Already, NHS Charities Together has signed up as a launch customer to make charity donations simpler and more secure.
Justine Davy, Head of Fundraising for NHS Charities Together; the national charity raising funds to support NHS staff, patients and volunteers said, “We are excited to work with the team at BOPP to showcase the ease of donations using QR codes but also the wider use of BOPP as a donation method. Providing a new and easy way to donate securely and safely without the need for donors to enter card details, is something we are keen to offer.”