The new fintech-created system could bring down the cost of digital transactions.
Figure Pay, a mobile payments system based is aiming to bring new and more affordable digital transactions to local small businesses.
Mobile payments have taken off since the start of the pandemic, but this hasn’t been easy on small businesses.
The Figure Pay app was developed by Figure Technologies. That company is a small fintech from Silicon Valley using technology developed in Missoula, Montana. Its goal is to employ blockchain to slash the costs associated with this type of transaction. From there, it can enter the mobile payment market and offer even the smallest businesses the opportunity to accept smartphone-based and digital payments in a way that could be more affordable.
The application has been compared to that of certain other digital transaction systems, thought it also provides line of credit features. Consumers have the opportunity to use the point-of-sale app to pay for purchases or to finance the purchase right at the point of sale through their smartphones.
The hope is that Figure Pay will make these transactions simpler and more accessible to small businesses.
“This is a simple interest product really built for the people,” explained Figure Technologies head of banking and payments, Tony Morosini. “When I came up with this idea, I thought, this is going to be a product built for people who get the least out of financial services — it’s going to be small merchants and the unbanked and underbanked.” He went on to state that: “We’re trying to offer a great product for that group of people and see where it goes.”
This is not the fintech’s first effort. Among its existing projects includes one that had dealt in home equity lines of credit. That said, it has shifted its attention toward conventional mortgages as well as student loan refinancing since that initial effort.
According to Figure Technologies predictions using its mobile payments system instead of a typical credit card company would reduce a small business’ transaction fee cost by an estimated 80 percent. This is considered to be a powerful moment for launching this type of service as consumers have suddenly become far more accepting of payment technologies allowing them to complete transactions contact-free.