UOL develops credit card reader for tablets and smartphones

The Brazilian e-commerce market grew at rates of 35% per year in the last decade and ended 2012 with a 20% increase in revenue, to $ 22.5 billion, according to the consulting firm e-bit. UOL was one of Brazilian groups to take advantage of this expansion. With the offer of hosting sites, data storage, selling advertising, online payments and other services, the company reaches its 17th year with a portfolio of 300 thousand stores, 23 million buyers and 4 million individuals who sell products and services in UOL.
Now, UOL executives turn their eyes to a business that grows significantly off the web: electronic payment. On Monday, the company launches a credit card reader, aimed at small retailers and professionals that are not serviced by companies like Cielo and Redecard.
The payment system is composed of a card-reader which can be coupled with iPhone and iPad (Apple) and the smartphones and tablets with Android, Google's operating system and applications for sales. To make the sale, simply connect the card reader to the appliance, enter the value of the purchase, pass the card and perform the operation, as one does with a capture of transactions (POS). The receipt of purchase is sent to the consumer's email address.
Transactions are protected by security software and are not recorded on the device, said Ricardo Dortas, Director of PayPal-online payment service UOL created in 2007. The card reader is adapted to meet the nine flags of credit cards, including Visa, Mastercard, American Express, Diners, Hipercard and Elo. Dortas said that the IHT took about a year to develop the new electronic payment service. The devices are produced by third-party manufacturers in China, the USA and Europe. "We prefer to take a little more time and offer a complete tool, launch something without much quality only to mark position in the market," said Dortas.
This type of device is nothing new in Brazil. In recent years, some companies have invested in electronic payment services using card readers. In the case of companies like carioca Zoop, paulista Go Pay and PagPop, Ribeirão Preto (SP). The business model, which in 2012 recorded $ 10 billion in transactions in the United States, is based on the experience of American Square, mobile payment service created in 2010 by the co-founder of Twitter, Jack Dorsey.
Marcelo Epstejn, Director-General of UOL, considers that the weight of the brand can promote the company in the competition for this market segment. "Over the years we have acquired enough knowledge of that need and stores that appeals to consumers. We gather the knowledge in this product, "he said.
The card reader will be sold with the brand PayPal. The device can connect to the internet by wireless networks (Wi-Fi) or connection of third generation (3 g).
Dortas said that the service has no membership fee, which makes it more attractive to professionals and retailers unable to acquire a transaction capture machine. The device will be sold in 12 installments of R $ 9.90. After the purchase, the seller will pay a percentage of sales. The rate was kept confidential by the executives. Competitors charge on average 2.7% on the value of the sale.
"The service will also allow the seller to offer payment in instalments by credit card, what other competitors do not have currently," said Dortas. The expectation of Director of Paypal is to attract "some thousands of entrepreneurs" in the first year of card reader offer. For the Executive, the service will allow the Paypal expand your universe of client companies, currently composed of small to large companies. "Now the Paypal will arrive to micro-entrepreneurs", said Dortas. The company plans to launch more e-payment services in the same year.