MEXICO CITY, MEXICO--(Marketwired - Jun 10, 2014) - Sr. Pago, one of the two largest mobile point of sale (mPOS) services in Mexico, today announced the launch of the Sr. Pago Card System, the first service in the Americas that combines a smartphone chip credit card reader with a debit card that can be reloaded with payments accepted through the card reader. Provided in conjunction with MasterCard and Te Creemos, the Sr. Pago Card System is offered to individuals and small businesses in Mexico that have been underserved by existing banking services.
"In Mexico as well as numerous other countries, an informal cash-based financial ecosystem comprises much of the national economy," said Pablo González Vargas, CEO of Sr. Pago. "For a variety of reasons, people are either forced or choose to be 'unbanked.' At Sr. Pago, we are addressing this market and empowering individuals and small businesses to have banking related services without having a bank account."
The Sr. Pago payment system provides a secure, chip-based debit card, a chip card reader that connects to any smartphone or tablet, and an app for managing transactions. This enables individuals and small businesses to accept credit card payment for the services they provide, transfer that money to a MasterCard debit card, and then make purchases with the card at MasterCard's worldwide acceptance. The card reader will process both traditional magnetic strip cards as well as secure chip-based cards, so the card reader is significantly more advanced than existing magnetic-only readers.
"The significant growth of smartphone penetration throughout the world, the inaccessibility of banking services in emerging markets and the increasing use of debit cards make the Sr. Pago Card combo a great opportunity for micro merchants and independent professionals," said Guillermo Escobar, Vice-president of Acceptance & Acquirer Relations of MasterCard Mexico and Central America. "We're pleased to know that Sr. Pago is bringing banking services to the underserved, and we look forward to extending this service to other countries after this initial launch."
"While the Sr. Pago card is available to consumers and small businesses in Mexico with traditional bank accounts, we see the greatest opportunity for impacting the underserved population in Mexico," said Antonio Flores Aldama, CTO & COO of Sr. Pago. "This segment comprises approximately 61% of the population (more than 73 million people) whose payment and spending transactions are mostly cash based."
As in other countries, the underserved population in Mexico runs the gamut from laborers to solidly middle class professionals, entrepreneurs and small businesses (architects, restaurant owners, lawyers, taxi drivers, door to door salespeople, business owners, etc.) whom encompass the majority of the Mexican economy.
The Sr. Pago Card will be offered at Best Buy and other large retailers throughout Mexico as well as online via the Sr. Pago website. It will have an approximate cost of $50 (USD) and include transaction fees comparable with other mPOS services.
About Sr. Pago
Sr. Pago is the first and only company in the Americas to enable individuals and small businesses to have access to banking related services via a MasterCard reloadable debit card without requiring a bank account. Currently operating in Mexico, it is revolutionizing the informal cash-based financial ecosystem that comprises much of the country's economy. Its flagship product is a payment system that provides a secure, chip-based debit card, a card reader that connects to any smartphone or tablet, and an app for managing transactions. Based in Mexico City, Sr. Pago was founded in 2010. The company is one of the two largest mobile point of sale (mPOS) service in Mexico with more than 3,000 customers and $700,000 in monthly transactions.