The payment processing companies JetPay and Cardis have partnered on a new project to try and bring down the cost of transactions.
JetPay, which specialises in e-commerce and card-not-present payments, and Cardis USA, part of technology developer Cardis International, have announced the launch of a new system for low-value payments in the digital content sector. This will be aimed particularly at entertainment, publishing and gaming industry customers, with the first music store launch planned for next month.
The system works by bundling together small card payments so that they are processed as a single, larger value transaction that is processed through a payment network. This, say the two companies, dramatically brings down the transaction cost when split between each individual payment, creating savings of up to 70% for retailers whose customers make small, repeat payments.
“We are very excited to announce the launch of our solution with JetPay,” said Nebo Djurdjevic, Chief Operating Officer at Cardis International.
“Currently, the music industry relies heavily on third-party, online retailers to sell music to fans. These online retailers take 30 percent or more of every dollar sold through their platform with a large share of this percentage going toward covering the cost of processing small payments. Cardis and JetPay are excited to offer our new solution that reduces this expense making traditional credit/debit card payments affordable for small payments.”
Steve Rifkind, veteran music executive and founding partner of All Def Digital, agrees. “The music industry landscape has changed significantly over the years through the introduction of new technology. Currently, the business model in place does not really favour artists and entrepreneurs’ interests. Online retailers eat up a significant chunk of the revenue in processing fees,” he said.
“Cardis’ new system allows for savings to be redistributed in the music value chain to provide higher income for artists who can then create more music, content and merchandise.”
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