Digital payments solutions provider Braintree is launching a new payments product and pricing scheme designed to simplify the payments process for startups.
Dubbed Braintree Instant, the new service is supposed to do that by eliminating the waiting period for a merchant account or underwriting approval.
Braintree is positioning the new platform as "the best of both worlds," describing it as the combination of the best parts of a payment aggregator (like PayPal) and merchant accounts. With Braintree Instant and the integration of the Braintree API, startup and small business merchants have faster access and approval without lengthy application processes.
Furthermore, the underwriting process would provide Braintree with more information about companies’ business models and growth plans. In this case, Braintree says that this would ensure that merchant accounts will not be shut down or frozen as a result of unanticipated activity.
Braintree is also dropping monthly premiums in favor of a flat transaction fee rate of 2.9 percent and 30 cents per transaction.
The debut of Braintree Instant follows the Chicago-headquartered company's $26.2 million acquisition of mobile payments startup Venmo in August. Similar to PayPal, Venmo produced an app that enabled people to be able to send each other payments (from bank accounts, credit cards, etc.) directly on the smartphone app without any other hardware required.
Both Braintree's new instant approval service and pricing plan are now available for all US-based merchants with an international expansion planned for the coming months.