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Our latest product is called Payyus – Pay with Your Phone – A Mobile Payment Solution (or Dilemma)

“Don’t leave home without it.” This used to be American Express’ ad slogan. Today, the same could be said of your smartphone, thanks to a new mobile payment app called Payyus.

Similar to the wildly popular Starbucks® app used by 10 million customers to purchase coffee, Payyus is taking mobile payments to the next level by eliminating the merchant’s need for credit card swipe dongles like Square or PayPal.

How is that possible? Payyus has devised a way to provide extremely secure transactions between smartphones and/or tablets.

Here’s how it works.

A customer enters their credit card information into their phone once. Then, when making a purchase, the app pings the Payyus server for a highly encrypted code, which is only good for 3 minutes. Next, Payyus scans this code for the merchant and tells the customer to enter their PIN to authorize movement of the funds.

Right now, Payyus works with credit and debit cards, using Authorize.net or any credit card gateway a merchant chooses. As most merchants can tell you, the gateway fees can get pricey, ranging from 2.75 to 5% per transaction. Which is why Payyus plans to offer merchants alternative, less expensive ways to accept payments.

To do that, Payyus needs to decide which system to use for the movement of funds: Automated Clearing House (ACH) in the U.S. or Bitcoin, an emerging global player. We’ve broken down the pros and cons and want your opinion.

ACH

ACH Pros

  • Established system that has been around for over 40 years.
  • It moves real U.S. funds backed by the government.
  • Payyus can readily connect to an ACH gateway for a fixed fee
  • Real fiat money is being moved within the host country banking system, not a commodity.

ACH Cons

  • Any customer can reverse a transaction for up to 60 days with no real hassle.
  • It would require a credit contract with the customer requiring payment if they reversed the transaction.

Bitcoin Icon

Bitcoin Pros

  • Once a transaction happens, it cannot be reversed.
  • Bitcoin is not money, but rather an asset per the IRS.
  • Bitcoin is recognized around the globe and Payyus could be used in any country in the world
  • A Bitcoin exchange wouldn’t automatically necessitate money transfer licensing in the states.

Bitcoin Cons

  • Bitcoin value floats with the market.
  • It’s fairly new and it conjures up visions of money loss. Will Mom and Pop ever warm up to it?
  • If you know Payyus runs on it, will merchants be hesitant to download the App and use it?
  • MT Gox failed and people remember, kind of.
  • Customers and merchants will have to pay a transaction fee to change from Bitcoin to their host fiat currency.

So as you can see, it’s a bit complicated. Which is why we want to hear your thoughts. Which do you think is the better solution for Payyus to follow: ACH or Bitcoin? Let us know and help us shape the future of mobile payments.

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