DoubleBeam is using electronic checks in its mobile payment system to cut merchants' costs on interchange.

DoubleBeam is up to 80% cheaper than paying standard interchange rates for card acceptance, says Ted Tekippe, CEO of DoubleBeam, during the FinovateFall conference in New York on Sept. 11. The savings allows merchants to offer heftier discounts to regular customers, he says.

The company's software development kit (SDK) allows consumers to pay at retail locations with a mobile device, but instead of drawing funds from a plastic card like many other mobile payment systems do, DoubleBeam asks consumers to scan a blank check. The company stores this financial information in the cloud.

For authentication, consumers also take a picture of their ID with their mobile device. The app itself is protected by a user-generated PIN.

"No mobile payments provider yet has really gotten it right," says Tekippe. "None of them seem to focus on what's really going to drive consumer adoption, the pain points…and on the other side providers are not really helping the merchants either."

Homeland grocery stores give customers better discounts when they use the DoubleBeam-powered app to pay, he says. Without DoubleBeam, customers receive five cents off every gallon for spending $50 in-store, whereas DoubleBeam users receive 20 cents off every gallon when they spend the same in-store, Tekippe says.

DoubleBeam has been running the SDK since January and has made four or five partnerships. The technology runs as part of the merchant's existing mobile app.

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