Mobile payments is arguably one of the hottest topics at the moment, and LightSpeed, a company that builds point-of-sale software for brick-and-mortal retailers, is joining the conversation. Today the company announced a $35 million round and plans to launch a new mobile payments service later this fall.
LightSpeed will be rolling out support for mobile payments later this fall in partnership with payments processing company Vantiv, offering an alternative to traditional credit card processing, Square, and the like. “We don’t think there’s a lot of value to payments without that [retail] software. … We want to get away from retailers looking at payments and inventory as different silos,” said Dasilva. Unlike mobile payments company Square, which got its start with helping small businesses process credit card payments and eventually expanded its offering with analytics software, mobile ordering tools, and so on, LightSpeed is building in the opposite direction. Although Dasilva didn’t share any specifics on processing fees, he said the “rates will be competitive” as he views retail stores as fairly low-risk. For context, Square charges a 2.75 percent transaction fee, PayPal charges 2.7 percent, Intuit charges 1.75 percent, and Amazon’s new card reader is currently coming in at 1.75 percent before it bumps up to 2.5 percent on Jan. 1, 2016 for folks who sign up before Oct. 31.