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PayToo recently launched what it says is the first cardless ATM network for the unbanked population.
The company plans to introduce full-service payment kiosks that provide consumer access to banking, bill pay and money transfer services as well as music, movies and Wi-Fi.
Mobile Payments Today sister publication KioskMarketPlace.com spoke with CEO Michel Poignant about PayToo's ATM and kiosk services and the company's goals for the future of cardless banking.
KioskMarketplace.com: Tell us how PayToo's cardless ATM works.
Michel Poignant: PayToo's goal is to be a real mobile wallet. That's a generic term used by so many people. We are what we think of as the true definition of mobile wallet. All of the services connected to the customer can be directly connected to the ATM network and be completely cardless.
Through the system you can take out cash and have access to cash anytime, anywhere. It is effective and simple for the consumer. You don't need a wallet; your phone is your wallet, and you can create a PIN from PayToo that can be sent to your family. For example, if your family is at Walmart and you want them to buy food, they don't need your card. It's convenient and cost effective.
KioskMarketplace.com: What sets PayToo apart from other companies with this type of service?
Michel Poignant: We are the only mobile wallet with cardless network connections to ATMs. We position PayToo as an alternative to banks. We believe we are the first to establish an ATM connection directly to the mobile wallet. PayToo offers a suite of services — a way to shop, pay bills — and we don't use existing solutions, which are relative to people who have bank accounts. We try to provide a one-stop solution for unbanked consumers.
For example, PayPal is a payment solution, but doesn't give gift cards and customers are charged a fee. We don't need a thousand merchants using PayToo like PayPal; we just have to provide the service to the consumer through one system in order to be effective. We allow unbanked customers, who don't have access to credit cards and banks, to shop, pay bills, buy music and videos and have access to our digital content catalog.We are providers of a payment system; we get 10 percent commission from merchants and don't charge consumers for transactions, which is different from other systems. With something like PayPal you have to pay fees, but we get our money from our merchants.
KioskMarketplace.com: How is Paytoo reaching out to consumers to let them know about their products?
Michel Poignant: We don't go directly to the consumer. We copartner with people who already have a consumer base or need to reach consumers. We are tied to a customer base through our partnerships. Companies who bring us customers could be telecom businesses, mobile, financial or dealer companies who have an established customer base. With this, we have the possibility to reach thousands of consumers.
For example, a company in Guatemala is integrating PayToo, and now families can send money to the US. With these kinds of companies we do co-promotions and get access to their customer base.
KioskMarketplace.com: What are your thoughts on PayToo's progress so far with its cardless ATMs?
Michel Poignant: We started the first ATM a few weeks ago and we're completing the first test using a cardless live test. Then starting around September to October we'll deploy nationwide through an existing network of ATMs. We won't deploy new ATMs; we already have a partnership with Genmega. But ATMs can be updated to use PayToo through a simple software that is free. We expect 30,000 by the end of the year.
KioskMarketplace.com: Tell me about the launch of your full payment service kiosk and how it works.
Michel Poignant: The kiosks have a touchscreen of six services, including cash deposit. Our PayToo kiosks allow users to pay bills, transfer money, buy gift cards, access our digital content catalog of music and movies and provide a free Wi-Fi spot. And the gift cards are cardless, so family members can be given access to them as a gift and no card is needed. We present our first kiosk in Orland in August, then in September it will be shown at the ATM&Mobile summit in Washington, D.C.
It's also very secure because a card cannot be duplicated and used before you even know there's been a breach of security. No personal information is given by transaction. The PayToo system uses a unique PIN that cannot be duplicated or reused. The card is prepaid, so you must have money attached to your PIN and cellphone. Transactions are built on your cellphone number. The PIN issued has to be used in the next 24 hours, so it is very secure.
The kiosks and ATMs will also use a Windows 7 platform and provide advertising that offers customer incentives.
KioskMarketplace.com: What does PayToo hope to accomplish with this product?
Michel Poignant: Our final goal is to be the Facebook for the unbanked customer's financial needs, if possible, in every country so that you can use PayToo anywhere in the world. Whether you are in Latin American or somewhere in Africa, the unbanked population can access the same services as the banking population and PayToo hopes to accomplish that.
Photo courtesy of William Grootonk.