You may remember Noca, a startup that wanted to disrupt the payments industry with a debit transaction product that promised low transaction fees for merchants. Today, the company is debuting its credit card offering, which aims to provide a secure, payments experience for both merchants and consumers.
Here’s how it works. Consumers get to choose a PIN (called Noca PIN) at checkout, allowing all subsequent transactions to be completed by entering the PIN as opposed to typing in 80-90 characters in a typical Credit Card or Check transaction. You enter your credit card information at the first transaction, and then simply enter the pin in other transactions.
For merchants, Noca’s offering promises to make consumer purchasing easier and thus create more transactions, and less abandoned shopping carts. And Noca’s payments system doesn’t require the consumer to sign up fr an account. And the startup says that Noca’s system can be integrated in a site with just a few lines of code. Noca’s fees are 3.5 percent (which is higher than PayPal), but there is no fixed per transaction fee.
It’s ambitious to take on PayPal in the online payments space, considering the reach that the eBay-owned company has already. But Noca was founded by PJ Gupta, who was formerly Visa’s Chief Architect, so the company has payment experience on its side.
Noca has built a new online payment system to provide significantly reduced transaction processing rates plus an efficient way for merchants to start accepting credit cards and checks online. Current payment systems have high fixed as well as variable costs and with their cumbersome interchange rates do not scale for merchants who want a simple way to get started and a simple transparent cost structure.
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