SSV Smart Pay, a subsidiary of SSV Capital PLC, is continuing to make progress on its plan to help retailers and other businesses improve the value of customer payments, with chief executive Ankur Ghosh saying the commercial launch is now moving ahead.
The aim is for Smart Pay to handle between 500,000 and one million transactions by the end of this year, with targets ramping up to four to five million transactions in 2025.
SSV Smart Pay is the fintech company’s app that uses QR codes to offer benefits to both merchants and customers.
Payment via QR code is increasingly popular in Australia, India and other parts of Asia, but almost ignored in this corner of the globe despite the UK’s open banking reforms.
The SSV Smart Pay app, like rival systems in Asia Pacific, uses QR codes to reduce transaction fees and offer instant settlements for merchants, as it means they no longer need to rely on the Visa and Mastercard payment processing networks, which are estimated to charge them between 1.5% and 2.5% per transaction.
Essentially, as 97% of UK adults own a debit card and prefer to use them for most tap-and-pay card machine payments, the QR system relies on the fact that these payments could bypass the pricy payment processing networks. Essentially they could just go from the customer’s bank account to the merchant’s bank, which would be a free payment if made via a bank transfer.
Not only that, sometimes card machine payments can take a few days to be received by the merchant, so the SSV Smart Pay system aims to use the open banking protocols to also speed up the transfer for merchants to a matter of minutes or hours, rather than up to five days that it currently takes, explains CEO Ghosh.
In order to attract customers to use the app rather than making a card purchase, the Smart Pay app will also be offer savings and offers via a system similar to loyalty points, he says.
“We are now moving ahead with the commercial launch,” says Ghosh, following a ‘soft launch’ late last year.
“We are rolling it out now and started our testing with merchants integrating a white label solution that is going to sit well with customers.”
Speaking about the launch, Ghosh emphasised the need for innovation in the UK payment landscape.
“The UK has been lagging in open banking solutions,” Ghosh said, citing the success of similar platforms in other markets such as Australia and India.
According to Ghosh, the new platform will cut merchant fees to less than 0.5% while allowing payments to be settled more quicky.
“Merchants love it because they’re seeing their funds arrive faster, and they’re paying much lower fees. This is a game-changer for businesses of all sizes,” he says.
SSV Smart Pay’s benefits to consumers will come via integrating with a network of merchants to provide brand-specific loyalty programmes. Customers earn cashback or discounts, which can be redeemed through the app. As Ghosh explains, “We want customers to feel that they’re getting something back, especially in today’s cost-of-living crisis.”
For instance, users could receive discounts at major high-street retailers or fast food chains, although specific partnerships have not been publicly disclosed due to ongoing integration processes. “Our goal is to build a network of trusted, everyday brands where customers can save as they spend," Ghosh adds.
While he says the platform has seen good early interest from merchants, Ghosh acknowledges that onboarding merchants and customers to adopt QR-based payments is not easy. Over 80% of merchants have expressed willingness to use the app, he says, with around 67% of customers initially open to QR payments. However, recent trends suggest that consumers are becoming more receptive, especially with the added loyalty benefits.
Despite these challenges, Ghosh is confident about the future. “Open banking is the next big thing,” he said. “We’re bringing both merchants and customers together without relying on traditional card networks, and that’s going to be a significant shift in the industry.”