Tuesday , May 28, 2024

MagicCube’s iAccept Gets a Shot in the Arm Via a Shift4 Partnership

MagicCube Inc. has partnered with processor Shift4 Payments Inc. to make its iAccept softPOS application available to Shift4 merchants.

MagicCube’s i-Accept app turns Android smart phones and tablets into PCI-compliant payment devices that can accept contactless payments using tap-to-pay with or without a PIN.

The deal is considered a boost for MagicCube’s business as Shift4 has a large merchant base and has a reputation among merchants for offering new POS technology. “Given Shift4’s reach and technical capabilities, it says a lot about MagicCube that Shift4 chose to partner with them,” says Cliff Gray, a senior analyst at payments consultancy TSG. 

One advantage of the deal for MagicCube is that it can now reach merchants in new markets, such as restaurants, a merchant segment in which Shift4 specializes. MagicCube “gets access to great use cases where Shift4’s SkyTab has already been in the hands of a large number of merchants,” says MagicCube chief executive Sam Shawki by email. “Nothing like a frictionless way to widely deploy with a trusted large partner.” Shift4’s SkyTab is a mobile POS system that supports mobile ordering and payments.

The plan now, Shawki adds, is to make iAccept available to all Shift4 merchants and “promote the great use cases as Shift4 has found i-Accept to be a state-of-the-art solution” that aligns with its goal of delivering flexibility and convenience for retail businesses of all types and sizes.

A Shift4 spokesperson confirms by email that there is considerable opportunity for its merchants to incorporate iAccept into their operations. “This partnership with MagicCube enables us to give our customers an additional option for payment acceptance to ensure we are offering the most robust end-to-end commerce solution on the market,” the spokesperson says.

Shift4 does not disclose the size of its merchant base. The company processed $27.9 billion in end-to-end payment volume in its third quarter, up 35% year-over-year. End-to-end volume refers to situations in which the company processes directly for merchants, rather than merely providing a gateway to other processing platforms.

While the deal is expected to boost MagicCube’s business, it also gives a moderate lift to the advancement of softPOS technology, argues Gray. SoftPOS allows contactless payment cards or digital wallets to be tapped or waved on or at a smart phone to pay for a purchase.

“This deal is really bigger for MagiCube than it is for Shift4, but it often takes a lot of deals of this size to advance a technology,” Gray says.

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