KreditFly, a venture capital-funded company that has operated in ‘stealth’ for the past year, is officially launching its mobile payment service with a strong group of beta partners, which promises ‘to fundamentally transform the way consumers use their mobile phones to make online purchases’.
Through KreditFly, all 300 million mobile subscribers in the US can immediately use their mobile phones to complete online transactions ‘while having complete freedom to choose how they pay’. Additionally, online merchants can now enjoy mobile-authenticated payments for their customers at percentage fees in the teens, as opposed to 50% for Premium SMS-based mobile payments, with full US mobile phone coverage. KreditFly also plans to make the service available for international customers in the coming months.
Paul Kim, CEO of KreditFly, explains, ‘KreditFly is pioneering a way for our merchant partners to pay significantly lower processing fees, while enjoying the benefit of 300 million potential customers in the US who can become paying users.
Until now, the only way to convert users quickly via mobile phone without user pre-registration was to place the charge onto the mobile carrier bill, but the high fees charged to merchants and reliability issues with Premium SMS have prevented truly widespread adoption of mobile payments in the US. KreditFly has now introduced a service that maintains all of the benefits of mobile-authenticated payments, including the speed, security, ubiquity, and high conversion rates, without the excessive fees.’
KreditFly works as follows: using it’s patent-pending Micro-credit process, a consumer who does not have a KreditFly account can still complete a transaction and receive his good without having to sign up beforehand. The buyer simply selects KreditFly during checkout, enters his mobile number into the payment page, receives a 4-digit code on his mobile phone, then enters the code back into the online payment page along with his email address.
The transaction takes only seconds, and the user gets the good from the merchant immediately. Then, within 7 days after the transaction, the user must register with KreditFly and complete payment through any of the payment options that KreditFly offers. KreditFly has developed strong, proprietary methodologies to follow up with users to ensure payment completion.
When users register, those who own credit cards or bank accounts can securely connect their account to these payment options. Those who do not have such options can instead choose to load up their account with funds and use it like a debit account by purchasing various prepaid cards that are available at nationwide retail stores (e.g. Walmart, Kroger, Target, 7-Eleven, Walgreens, etc.), or by mailing in cash or money orders directly to KreditFly.