iZettle and Santander UK Announce Partnership to Increase Support for Small Businesses
June 11, 2013
LONDON – June 11, 2013: Santander UK and iZettle, the social payments company, today announced a UK partnership agreement, enabling self employed professionals and small businesses to accept card payments with smartphones and tablets.
The announcement follows new research from iZettle and Santander UK that reveals 39 per cent of UK shoppers are avoiding small businesses that don’t accept payment by card, or require a minimum payment amount.
The research shows that the nation is increasingly turning to plastic, with 78 per cent of UK adults carrying less cash than five years ago. On average people now carry around just £20 to £30 in cash. Small businesses are struggling to adapt to this shift in behaviour and are missing sales opportunities due to lack of flexible payment options.
The demand for card payments is strongest amongst the younger generation, with more than half (56 per cent) of 18 – 34 year olds avoiding small businesses that don’t accept card or charge minimum payment amounts. However our avoidance is not without regret - around a third (30 per cent) of respondents feel guilty about avoiding local small businesses because they want to support them, but find it is too inconvenient for them if cards are not accepted.
This demand presents a huge opportunity for small businesses, with 60 per cent of UK adults stating they would be more likely to buy from small businesses if these payment barriers were removed.
From today, Santander Business Banking will offer a solution that includes the iZettle Chip & PIN reader, to its small business customers at a preferential rate, enabling them to accept card payments using their smartphones and tablets in a far more cost effective and flexible way than traditional card terminals. The partnership will help level the playing field for SMEs by enabling them to offer the same level of service as their larger competitors, and allow them to handle less cash and cheques, cutting down on admin and the potential security risks associated with cash and cheques.
Steve Pateman, Head of UK Banking at Santander said: “The British economy is built on the success of its millions of small businesses. These business owners know that their success relies on being able to give their customers what they want. Our research shows that consumers want payment barriers removed, and business owners want a flexible and innovative solution to this problem.“
“At Santander, we are constantly searching for innovative solutions that add value to our customers every day needs, which is why we are pleased to be announcing our partnership with iZettle, an innovative small business in itself. This collaboration will enable us to offer our business customers a low cost solution that will help make payment processing easier and ultimately help their business to flourish and grow.”
Jacob de Geer, co-founder and CEO of iZettle said: “With younger generations clearly expecting to be able to pay by card, it’s important that our own customers aren’t being held back. Our vision from day one has been to simplify and democratise payments. iZettle is driven by the need to provide a solution that gives businesses an easier and more mobile way to accept card payments. Our partnership with Santander UK helps to make that happen, offering the tens of thousands of small businesses using their services the flexibility to make card payments much more effortless, and giving their own customers the type of service they’ve come to expect.”
The research also revealed:
• The most common occasions where respondents were unable to pay by card were small, independent retailers (25 per cent), a pub or bar (13 per cent), market stalls (13 per cent), taxis (12 per cent), and food and drink at an event (concert, football match etc)
• Nearly half (46 per cent) of UK adults find it frustrating when a shop has a minimum card spend of £10
• When unable to pay by card, 16 per cent of UK shoppers cancel the transaction and go somewhere which accepts cards, and 15 per cent cancel the transaction altogether
• Of those who go elsewhere, 66 per cent go to a large supermarket
• Furthermore, just under a quarter of UK adults (23 per cent) admit to avoiding shopping at local businesses altogether because they’ve come to expect they don’t take cards or have minimum spend policies
Price and Availability
The Chip & PIN reader costs £99 plus VAT. Santander Business Banking customers will receive £50 cashback following their first iZettle transaction, providing the device is linked to a Santander Business Banking Account. The iZettle Chip & PIN reader was launched in February 2013 and is available in the UK, Germany, Spain, Sweden, Norway and Finland.
The Chip & PIN reader connects wirelessly, via Bluetooth, to a smartphone or tablet, or plugs into a smartphone or tablet. The reader works with the free iZettle app to allow merchants to accept card payments and manage transactions. The free iZettle app can be downloaded from Apple’s App Store or from Google Play.
Getting started with iZettle only takes a few minutes and is done entirely online. iZettle merchants pay no subscription, set up fee, monthly or minimum fee, and only pay 2.75 per cent of each transaction amount. iZettle’s app and card readers work with all major credit cards, including Visa, MasterCard, Maestro, Visa Electron and V Pay.
The Financial Supervisory Authority regulates iZettle and its services, which are EMV (Europay, MasterCard and Visa) approved and compliant with the Payment Card Industry Data Security Standard (PCI DSS).
Notes to editors Research commissioned by iZettle and Santander UK and conducted 17th – 20th May 2013. Research carried out by Opinion amongst a sample of 2,009 nationally representative (UK adults aged 18+).
Santander UK plc is a full-service retail and commercial bank providing services to 15 million active customers, with almost 1,200 branches and 36 regional business centres. It is a wholly owned subsidiary of Banco Santander. Santander UK plc manages its affairs autonomously, with its own local management team, responsible solely for its performance. Santander UK is firmly focused on the UK with c. 98% of customer assets UK-related and c. 84% of customer loans consisting of prime residential mortgages to UK customers. The total balance sheet remains UK focused, with a minimal net exposure after collateral to eurozone periphery countries only amounting to c. 0.4% of total assets. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN.MC, STD.N, BNC.LN) is a retail and commercial bank, based in Spain, with a presence in 10 main markets. Santander is the largest bank in the euro zone by market capitalization. Founded in 1857, Santander had EUR 1.388 trillion in managed funds, 102 million customers, 14,392 branches – more than any other international bank – and 187,000 employees at the close of 2012. It is the largest financial group in Spain and Latin America. It also has significant positions in the United Kingdom, Portugal, Germany, Poland and the northeast United States. Santander had a pre-provision profit of EUR 23.559 billion in 2012, an increase of 2per cent from the previous year.