Accounting software company MYOB has announced the launch of PayDirect Online, a new card reader and online payment processing solution to help sole traders and small businesses get paid on the go.
Pitting MYOB against the likes of PayPal and Square, the PayDirect Online card reader works by having business users connect the reader to their smartphone through Bluetooth and sign in to the mobile app.
When taking a payment the user enters the invoice amount on the phone or taps ‘Take Payment’, then completes the transaction using the card reader, with a receipt emailed or sent to customers via SMS and the money deposited into the nominated bank account. The card reader accepts a variety of cards.
The system integrates with the company’s PayDirect Online invoicing and payments software, which also allows businesses to raise an invoice and email it to a customer instantly, with the customer then able to pay it online directly from the invoice and accounts updated automatically once the payment is finalised. According to MYOB, PayDirect Online will be available as a native feature in its AccountRight and Essentials platforms.
James Scollay, general manager of SME Solutions at MYOB, said that the new system will look to help SMEs get paid faster and gain better control of their sales through its online invoices.
“Australian businesses currently on average wait 44 days to get paid, and our research continues to tell us that cash flow is a significant concern for businesses. We’re working to reduce this time, and address SME pressure points of cash flow and uncertainty in finances,” Scollay said.
The PayDirect reader is $225, with MYOB charging a transaction fee of 1.77 percent for each credit card payment and $0.27 per EFTPOS transaction.
A Square reader, meanwhile, sets customers back $19 with a fee of 1.9 percent for each transaction, though its contactless reader is not yet available in Australia, while the PayPal Here card reader costs $149 with fees of 1.95 percent for card reader transactions.
The move into this space by MYOB makes sense, with the company’s research showing that 64 percent of Australians prefer to pay by card and 5.1 million Australians walk away from a sale if they can’t pay by card – clearly, there is a lot to be made in the space, with Square processing payments worth US$23.8 billion in 2014.
As well as giving MYOB an edge over its competitors in the accounting software space, the launch of the new system comes as MYOB continues to roll out its vision of the ‘connected practice’, including a new online ledger for accountants that allows practices to have a consistent workflow across all clients, no matter which product their clients are using.