Vapulus, a specialist firm in financial technology (FinTech) solutions, has announced the launch of the world s first e-payment portal with 0% transaction fees, changing the rules of the competition game in the global e-commerce and e-payment markets.
Unlike all global players and e-payment processing companies, Vapulus launched its portal without subscription fees and no fixed fees per transaction.
The commercial launch of the portal came after a pilot (soft) launch for nearly a year, in which the portal gained the trust of more than 450 trading companies and e-commerce platform from 14 countries across the Middle East and North Africa. The company, based in Egypt, targets to operate globally within three years.
“The profit-making model of the transactional pricing is going to die, so any e-payment processing companies that rely on these fees as a major source of revenues will be out of competition,” according to Abdelrahman Elsharawy, co-founder and CEO of Vapulus.
“As we aim to be able to compete globally, we decided to offer our services free of charge without any fees, in a proactive step to the future of electronic payment ” he added.
Elsharawy stated despite the fact that in 2018, e-payment portals generated profits of $64bn through charging merchants 2.9% fees per transactions, his model is under attack by other free e-payment technologies like e-wallets, blockchain, and ACH, which made it essential to develop a 100% free business model.
“The step of abolishing fees plays a pivotal role in enabling small and medium-sized enterprises (SMEs) to enter the e-commerce market, which provides many job opportunities and reduces unemployment rates in emerging markets. This will subsequently achieve social and economic equality, and aligns with the United Nations Sustainable Development Goals (UNSDGs),” he explained.
Notably, e-payment portals are serving as an interface between online businesses and their customers, it allows the merchants to receive customers payments using various electronic payment methods including banks accounts, e-wallets, debit cards, and credit cards.