Beaton makes second attempt at challenging Paypal

A TECHNOLOGY entrepreneur is embarking on his second attempt to build an online payment system which he hopes could net him a fortune.

Richard Beaton has invested around £400,000 in App55 – a system allowing retailers of all sizes to take payments more easily from the web or from applications on smartphones

The Salford-based company was launched last year, but the product remained at development stage until December and Beaton only recently left a full-time job with hardware giant HP to pursue the venture full-time.

Beaton said that the App55 technology allows retailers of all sizes to have their own branded “apps” or easily take payments through their own website rather than relying on third-party card payment processors such as Paypal.

Once customers enter details on an initial visit, they only need to provide a password for future transactions either via the web or smartphones.

He is directly targeting businesses which carry out significant numbers of online transactions, such as independent theatres, concert venues or multi-site food retailers as well as tech wholesalers and firms which sell applications to businesses.

Beaton said that a trial by Pizza Hut’s owners in New York last year of a smartphone app with an easy payments service led to a 40% increase in the typical order size from customers, who also ordered 25% more often.

He also pointed to a rise in the amount of money spent through social media sites such as Facebook.

If companies are able to offer frictionless payments, I think they’re onto a winner.”

Beaton has partnered with web development firm Valtech to integrate his service into website and applications that it is building for customers where they require them.

Beaton said that payments through his system are being handled by RBS World Pay.
“The system has been ethically hacked and was recently signed off by a third-party security tester,”

He also argued that App55’s payment system will cost a firm no more than it is paying to the likes of Paypal and other processors, but offers the capability of working over different platforms such as smart phones and the web.

This will be Beaton’s second attempt to build an online payments business.His early career was spent working for venture capital firms as a technology troubleshooter but he later launched his own business at the height of the dotcom boom building a company which had developed a secure secure online payment service via email.

His London-based company, Paytastic, had received backing from a venture capital firm.

However, the firm has also backed X.com (later to become PayPal) in the US and when it decided to move into Europe funding for Paytastic dried up.

Beaton said that he had poured everything he had into the venture – “I was left with a suit and a laptop”.

However, he believes that his new system offers better functionality and is keen to embark on another attempt to build a business in the sector.