The startup PagPop –creator of a system that allows Hairdressers, hot dog vendors and other small entrepreneurs to receive payments by credit card on smartphones — has joined the Business Call to Action, a group of companies that develop business models focused on solving Millennium goals. The initiative is supported by, among others, the United Nations UN and the foundation of former U.S. President, Bill Clinton.
In Brazil, only six other companies were already members of the group: Itaú Unibanco and Santander (by microcredit programs), Sorridents (by popular dental treatment), Pupa (the educational system simulation), Grupo Orsa (by the sustainability program at Amazon) and Sambazon (by integration of the Açaí growers).
The Business Call to Action group considered that the system of mobile payments PagPop helps to include people marginalized in the financial world. So, without knowing, the company works for developing a Global Partnership for Development, one of the eight millennium development goals. The others are: end hunger and poverty, universal primary quality education, gender equality and empower women, reduce child mortality, improving maternal health, combat malaria and AIDS, and ensure environment sustainability.
The company has created a system that gives small entrepreneurs the ability to accept payments by credit card. By 2012, the tool recorded payments via telephone (automated attendant) and internet.
This year, the PagPop joined the 21212 accelerator in Rio de Janeiro, one of the first to exist in Brazil. Since 2009, Square, startup created by Jack Dorsey, Twitter founder also already worked in the U.S. with a mobile payments system created for smartphones register purchases with a credit card.
The model was imported by PagPop. “We keep the multichannel service, but the smartphone usage has grown tremendously, and at all social levels. This is not a barrier within our business, “says Fields.
Of the total of 70,000 outlets serviced by startup throughout Brazil, 30 000 already use payment via smartphone. Transactions, 60% are made via smartphones.
That’s because, for now, only transactions by credit card are accepted. Within 60 days, the company will launch the opportunity to also use debit cards with the launch of a reader with plastic chips.
Will it sell on credit?
It may seem little, but allowing microentrepreneurs tp accept payments by credit card is a tremendous revolution in their business in Brazil: offering alternative to cash or check will most likely increase sales.
“When you sell by check and cash, you only sell to who you know or cash. But does not create a scenario around selling to more customers. This only occurs when you sell on credit. Microentrepreneur Like, you can not sell the credit.’ll sell spun No, huh. But the bank has lent credence to this person, she has design. sells When installments, the bank is the guarantor. then she can sell to anyone, then it will sell more, “explains .
Fields account that created the model to meet dentists and doctors, but began to receive requests from other entrepreneurs, as sellers of cosmetics and hairdressers also unresolved as the payment method.
“I always understood that the business had to have a larger ballast, could not get connected to the world of health area, which is an elite staff.”
While at 21212, they explored possibilities that came from outside and the idea of the democratization of access to payments via smartphone emerged.
“In pitches [exhibition business model to investors] that we do, are usually in English. I said ‘democratic’. Benjamin White, our mentor in 21212, was like, ‘This thing does not sound good.’ Then we moved to ‘affordable’ [low]. But what I wanted to talk was not ‘affordable’, what I wanted to say is that this deal is for the people, “he says.