Yavin initiates payment by transfer from Eftpos terminals

Yavin is a French FinTech specialising in payment on Android terminals. In order to enrich its offer, it has just announced the deployment of a new service for initiating payment by transfer from these same terminals. This initiative is in line with the times, as instant transfer payments are gaining ground.

FACTS

• Yavin is introducing a new feature for its Android-based mobile payment terminals, which are now capable of initiating instant and free account-to-account payments.

• The start-up promises to participate in the democratisation of Instant Payment and the initiation of transfers on a usual support (a payment terminal) and especially, in a context of purchases in physical shops.

• Customer journey:

• The merchant enters the amount to be paid on his Android Yavin payment terminal,

  • a QR Code is generated and displayed on the terminal,

  • the customer scans this QR Code with his smartphone and is redirected to his mobile banking application,

  • the transaction details are displayed and the customer can validate,

  • the transfer is generated and the funds are immediately delivered to the merchant.

• The transaction is free of charge for both the customer and the merchant.

CHALLENGES

• Disrupting card networks: Yavin's promise is to allow consumers to dispense with their payment card, without completely disrupting the customer experience. Hence the interest in integrating this new functionality into a journey close to the existing one, by relying on the existing payment terminals in shops.  

• Diversify its offer: Yavin was created in 2019 by payment experts. Initially, it allowed for the integration of a tip application with Eftpos terminals. It is now taking a step further with this new solution.

• Surfing on an innovative model: Yavin emphasises the novelty of its initiative. But the Lithuanian start-up Kevin has also just raised funds to initiate transfers from physical POS terminals. Worldline is also reportedly working on the same functionality. For its part, Yavin is banking on a different remuneration model. Instead of being remunerated on the commissions linked to transactions, Yavin has chosen to charge for the services associated with the payment (split payment, tip, etc.).

MARKET PERSPECTIVE

• The ECB and the European Commission are working hard to spread the use of instant transfers. However, this diffusion remains slow, even though the solution has existed since 2018 and only 3 to 4% of transfers currently use the SCTinst in France. Hence the recently renewed recommendations that instant transfers should be free of charge in order to encourage their spread. La Banque Postale has already taken the plunge.

• Yavin now has 1,000 French merchants as customers. It is targeting larger players than most of its competitors in the softPOS or mobile payment segment. It is also targeting Europe, as it is already present in Belgium and Ireland, and is aiming for Germany, Italy and Spain.