Local Pay provides an ultra-secure, point-to-point payment routing network for instant, low-cost retail transactions. This platform enables consumers to link payments to various bank accounts and allows merchants to save significantly on processing fees with real-time settlement. Banks and Credit Unions can leverage this technology to offer branded debit and credit payment products to their customers.
Funding
Funding not disclosed
Founders
Product
Problem
Merchants face significant transaction fees when customers use credit or debit cards at the point of sale. Consumers lack options to directly utilize their bank accounts for retail payments, missing out on potential discounts and rewards. Banks and credit unions are limited in their ability to offer innovative payment solutions and generate fee revenue from transactions.
Solution
LocalPay provides a payment platform that enables consumers to pay merchants directly from their bank accounts, bypassing traditional card networks. This account-to-account (A2A) payment method reduces merchant processing fees by up to 1.5% while allowing them to offer instant discounts to consumers. The platform utilizes a patented, ultra-secure, point-to-point distributed payment routing network to facilitate real-time capable settlement at payment confirmation. Banks and credit unions can leverage LocalPay to create their own branded payment products, generating new fee revenue streams and enhancing customer loyalty. Consumers can link various accounts, including checking, savings, loans, and credit, for flexible payment choices via a simple QR code scan.
Target Audience
LocalPay targets consumers seeking lower-cost payment options, merchants aiming to reduce transaction fees, and banks/credit unions looking to offer innovative payment solutions and generate new revenue streams.
Features
- Patented distributed payment routing rail for low-cost and fast transactions
- Secure point-to-point confirmation and settlement through tokenized payment data
- Real-time capable settlement at payment confirmation
- Biometric-enabled security for consumer authentication
- Flexible account payment choices, including checking, savings, loans, and credit accounts
- QR code-based payment initiation for ease of use
- Integration with Jack Henry, FIS, and Fiserv for seamless bank connectivity