A branded payment solution providing merchants a secure alternative to credit card processing fees while powering customer loyalty programs this week added a hotly requested feature to its platform.
Vancouver-based fintech Lynk has launched Pay by Bank, which it says was the most-demanded feature from users.
Pay by Bank allows businesses to reduce their credit card processing fees while safeguarding against fraud “and providing businesses immediate access to their revenue,” according to a statement from the BC startup, which emerged from stealth in September.
“Credit cards are one of the most expensive means of payment for businesses, especially in today’s high inflation environment,” warns founder Nabi Awada. The CEO adds that “fraud and chargebacks continue to increase at alarming rates.”
And in many cases, the entrepreneur notes, “these costs are passed onto the consumer.”
Lynk is targeting startups, small businesses, and the gig economy with its new fintech platform. The company claims to offer the lowest processing fees in the industry, ranging from 0.5% to 1%, and provides immediate access to revenue unlike traditional platforms.
“Our Pay by Bank feature is designed to help retailers, especially smaller businesses, significantly reduce their processing fees while providing a more secure environment from which to receive payments that can be accessed immediately,” stated Awada.
Pay by Bank integrates with existing e-commerce flows, says Lynk. A consumers simply links their bank account by selecting “Pay by Bank” at checkout.
Merchants can reduce their transaction failure rate to “nearly zero”—compared to 11% for digital wallets and 8% for traditional credit cards—according to data from the startup.
This is because Pay by Bank utilizes a “proprietary authorization method that removes the possibility of unauthorized transactions, chargebacks and fraud,” the company says.
Awada believes that establishing a payment platform is one of the biggest cost and time expenditures for any company—and especially for startups.
“At Lynk, we are out to change that,” the startup has stated online. Built specifically for smaller marketplaces and gig economy companies, “our branded payment platform can be set up in days, not months, without any development time or upfront costs and reduces credit card processing fees by up 90% all while building customer loyalty.”
As part of its launch in 2022, Lynk raised $3 million in seed capital. Investors included Samsung Next, Plug and Play, Tribe Capital, Simplex Trading, N49P and others.
They agree with Awada’s angle.
For example, Samsung said it invested in Lynk because the startup’s solution “enables companies to focus more on developing innovative products and services, and less on overcoming financial and regulatory obstacles.”
“We think Lynk’s end-to-end platform is in a good position to grow by helping companies start and manage their businesses without high costs and time-consuming operational challenges,” stated Next venture capitalist Lizzy Goldman at the time of the transaction.
For companies across Canada, this Vancouver-born fintech solution may be the missing link.