The CEO of Paymill is Mark Henkel who was one of the co-founders of the company when it was first established in Munich, Germany in June 2012. Initially Paymill was backed by the Samwer brothers of Rocket Internet, but has since accumulated additional investors.
Before Paymill’s establishment, the processing of credit card payments online via a merchant’s website was too costly for small businesses in Europe. By identifying a gap in the European market, the company who initially provided their service in Germany have, in a short time, expanded their business considerably and are now serving 40 countries. In 2013 Paymill were amongst the winners of the Top 100 European Start-ups in the Red Herring list.
Paymill Merchant Accounts
There is a small fee for each transaction (2.95% + 0.28 Euros), however there are no fixed monthly fees or set up costs. There may be a small increase in the transaction fee depending on the country and type of card used in combination, but all major credit and debit cards can be processed. Transactions can be completed within two days and merchants receive their money every seven days.
Paymill can process 120 different currencies with a choice of 23 currencies available for pay-out. (This is paid in the merchant’s local currency, however additional currencies are available on request.) Customer service is provided for any concerns over technical matters with telephone support available in London, Paris and Germany. The company employ 70 staff from several nations, including the UK, US, France, Brazil, Argentina, Germany, Poland and Pakistan.
The Paymill Package
- Auto-invoicing by email.
- Subscriptions and recurring payments can be arranged.
- Mobile SDK (Software Development Kit) allows payments to be received through iOS or an Android application.
- A pay button code can be embedded into the merchant’s website.
- Payment set up for start-ups.
- PCI DSS compliance made simple.
- System upgrades available.
- Rest Application Programming Interface (Rest API) allows card payments to be integrated into the merchant’s website.
- To get on board is a fast and easy process and the merchant has the option of adapting the checkout to accommodate the rate of traffic on his or her website.
- Unite is a method by which both merchant and an e-commerce platform, such as Shopify, are registered with Paymill allowing customer payments to be sent directly to the merchant via their e-commerce platform.
Stripe is the American competitor of Paymill; however Stripe serves only the US, Canada and the UK. Both companies are trying to capture the market that employs e-commerce platforms and both use API. The strength of Paymill in comparison to the US based Stripe, lies in its present monopoly of the European market for merchant account payment gateways.
Paymill’s weakness in comparison with Stripe is the slightly more costly transaction fee (as seen in the chart below). Stripe charges 2% on top of the market exchange rate and a little more for chargebacks compared to Paymill. For the use of American Express cards, Paymill will charge 3.95% + 36 cents or 21p. The length of a Paymill contract is indefinite and termination can be made without notice by either party. Stripe gives a two month notice of termination, or immediately in the case of breach of contract).
Price Comparison[table “” not found /]
Paymill Investors and Affiliates
Paymill Investors include:
- Rocket Internet
- Holtzbrinck Ventures
- RI Digital
- Sunstone Capital
- Blumberg Capital
Paymill partners include:
- Shopify & Lemon Stand both provide e-commerce platforms, facilitating businesses to set up an online store.
- Contrexx provides a web content management system.
- Comvation provides a payment solution interface integrated into the Contrexx web content management system.
- Fastbill provides Software as a Service (SaaS) platform for recurring billing and subscriptions.
- Pactas provides contract management and a recurring billing service.
- Pay On and Paymill is a mutually stimulating partnership. Pay On offers a technology to Paymill that allows clients, both merchants and customers, more selection in payment type.
Disclaimer: All prices quoted in this article are true at the time of publication.