We like to buy things online, from e-commerce stores to subscription-based sites. Nevertheless, no one enjoys the hassle of always having to log back in to different sites and stores. I mean, shopping could be so much more fun if there was a quick checkout and registration system in place at all of your favorite online stores.
In the US, Fast, a high-flying startup, already meets this need. Although the company is building a global product, it is limited in Africa and OurPass has been interested in building one for the market.
The Abuja-based startup, which describes itself as the “Fast for Africa,” has also closed a $ 1 million pre-seed round to scale across the country. The round was led by Tekedia Capital and angel investors from Fortune 500 companies, the company said.
The e-commerce checkout problem is one that founder and CEO Samuel Eze is familiar with, but through second-hand experience.
“I saw my mother struggle to shop online where I saw her set up multiple accounts on different platforms while going through a rigorous payment process, “he told TechCrunch in an interview. “In many cases, ended up dropping the card and going to a different online store. Seeing the same pattern happening with other friends and family, I had to dive into it and found that it was actually a huge headache for consumers and online retailers.. “
Nigeria’s e-commerce market continues strongly It depends on the cash on delivery. In fact, as of 2019, 70% of Nigerians in a survey They said they prefer cash on delivery options for making payments online.
But the narrative is slowly switching with companies like Paystack and Flutterwave, making it easier for merchants to collect payments online.
By Statista, 27% of online payments made on e-commerce sitesyou are now carried with cards, surpassing cash and bank transfers as the most common payment method.
However, checkout is still a major problem for traders. Annually, about 75% of shopping carts they are abandoned due to how cumbersome the payment experience can be with long forms and session resets.
In attempting to address this challenge, OurPass provides a mobile application that enables consumers to purchase with a single click. The first time consumers sign up for the OurPass platform, they enter their names, email, and shipping addresses. OurPass then creates an identity for each customer, which is passed in all online stores that buy.
“We created an identity layer on the web to allow the consumer’s identity be sent to all the online stores they visit, ”Eze said.
In essence, OurPass customers would no longer need to fill out any forms and would not have to deal with registration issues. But here’s the thing: they can only buy from merchants who have the OurPass API linked to their platforms. And that’s a great question.
So why has OurPass decided to go this route of creating its own ecosystem of merchants and consumers? For example, in the case of Fast, only merchants need to install Fast Checkout, while users can access the service through an e-commerce or merchant website. But for OurPass, users have to download an app and shop with merchants using the platform.
Initially, OurPass allowed users to fill in their payment card details when filling out their forms for the first time without the need to download an app.. But after several cases of payment gateways flagging many cards used by OurPass consumers and failed card transactions, the company decided to adopt a wallet strategy and created an app for consumers..
“We didn’t want to defeat our one-click payment PVU by allowing consumers to try to pay with a single click to have their cards flagged as fraudulent,” Eze said. “Hence the reason we had to build our system on a wallet system to allow one-click payment.”
That means consumers and merchants. They are assigned virtual account numbers to use in a wallet. In order for consumers to make payment in a store, they will need to fund their wallets and once they do, the money will be transferred to the merchants’ wallets. Eze says this helps OurPass capture end-to-end value and offers instant payment settlement which, according to him, was not the case with payment gateways..
Our Pass has brought together some merchants on its platform. Most of their clients are small businesses that use Storemia, an online storefront provider that OurPass recently acquired. The company also plans to work with merchants on e-commerce platforms, including WooCommerce, Magento, Squarespace, and Shopify in the future, and social commerce platforms such as WhatsApp, Facebook, and Instagram.
In addition to its one-click payment, OurPass also offers free delivery on all orders for customers. The company partnered with logistics companies such as MAX.ng and Gokada to execute on this front.
The one-year company charges 0.8% per transaction, capped at N1,000 (~ $ 20) for merchants and a 5% commission on each product sold – Eze also suggests a plan for the company to introduce subscriptions.
Since launching the beta version in May this year, OurPass claims to have made $ 500,000 in transaction value and expects continued growth to make it the benchmark platform for consumer payment in Nigeria by 2023..
By use of funds, Eze says OurPass will develop its technology and grow its team to 200 people before the end of next year.