Over the past few months, as you may recall, we have been working extremely hard to build a fantastic new platform for photographers to sell their amazing work. We call this The Horizon Gallery, and we are really excited on its progress. However, while we’ve been building this new platform, have found out something interesting… Payment Gateways are STILL rubbish. Don’t know what a Payment Gateway is? Think PayPal, Google Pay and all the other logos you see as you shop online. The reason they are rubbish? They cost a small fortune per transaction, which ultimately makes prices for the end-user (that’s you), higher. Let’s explain…

Why are Payment Gateways rubbish?

The main reason is because even though the cost of technology and the management of said technology has fallen dramatically over the past several years, they are still charging a phenomenal amount per transaction. As example, most charge 3% + 30-40p per transaction, depending on the platform. That hasn’t changed for at least decade. Meaning even though the wholesale cost is actually a fraction of the cost, to keep their shareholders happy, they simply charge the same. Meanwhile, the amount of online transactions has ballooned over the same period. Meaning shareholders are getting even more returns. But let’s put some figures to it…

According to Spotify’s own reports:

  • In 2014, $1.4 trillion in sales was conducted online.
  • In 2017, e-commerce was responsible for $2.3 trillion in sales.
  • It is expected to nearly double to $4.5 trillion by 2021.
  • It’s predicted that there will be a 276.9% increase in worldwide e-commerce sales.
  • The UK in 2018 conducted $86.5 billion in sales alone, with predictions that by 2023 it’ll be $113.6 billion – a 31.3% increase.

So charging 3% + 30-40p per transaction soon amounts to astronomical profits.

Our history with Payment Gateways

Several years ago now, we partnered with WorldPay to explore to see if we could create a new payment gateway for the scouts and guides community called ScoutPay™. The plan was to launch it as part of a second phase while we were working with Cambridge Scouts District. However, due to many very good reasons, the project never saw the light of day.

However, from this 18 month work with WorldPay, and our own additional research, we are in the rare (and fortunate) position to actually know the “wholesale price” is to process a transaction. We also know the technology needed, the security necessary, and how to make transactions happen safely.

So what are we working on?

Revisiting and researching Payment Gateways a few years later, I was personally shocked that there has been little to no change – apart from more players charging similar prices – all trying to cash in for a cut of the pie. Generally, I do not think this is bringing any evolution to the market, and once again, the customers are the one’s footing the bill.

Today, I can announce that Digital Rhapsody has decided to pick up where we left off.

ScoutPay™ is returning, and will be the only gateway we will be using from now on, on all our platforms. Simply meaning, from what we save from these per transaction costs, we will be able to these savings to our customers of our products and services. We also think that this timing is paramount, as local and international economies are being hammered by the effects of Covid-19. By creating a more affordable and accessible payment platform, we truly hope that these running cost savings will help to save more jobs throughout each sector.

What can we do that is different to other platforms?

Well unlike the other payment gateways, who have to please their multiple shareholders, Digital Rhapsody only has one shareholder to keep happy… And I’m more than happy to charge basic wholesale price. The deal is as long as the project covers its own costs, Digital Rhapsody is happy to run the payment gateway. Bribes of coffee and decent biscuits are also welcomed 😛

We are continuing with the ScoutPay™ name, as we still own the trademark – plus it does sound cool. When we started working on the project, The Scout Association made it clear, they wished it to be an independent project, and have nothing to do with it. So Digital Rhapsody still owns all the rights and intellectual properties to the whole system we have produced up to that point. We have also decided to independently produce our original vision for the project as we intended it to be – an affordable, safe and secure method for the scouting and guiding communities to make/take payments instead of relying so heavily on cheques (which are being phased out shortly). However, also allow others to use it through “ScoutPay™ for Business”.

This is our current roadmap:

Phase 1 – End of 2020

  1. Launch the basic structure of ScoutPay™ – hopefully by end November / early December 2020
  2. The ability to accept credit cards, debit cards, mobile wallets, and dozens of payment methods from around the world – all with a single integration system
  3. Include Apple and Google Pay integration built-in as standard (primarily for secure mobile device transactions)
  4. Launch The Horizon Gallery™ with ScoutPay™ at the heart of the service
  5. Implement ScoutPay™ with all our currently Products and Services

Phase 2 – 2021

  1. Build a universal and free system for the scouts and guides community to use ScoutPay™ as originally intended
  2. Launch ScoutPay™ for Business to allow selected businesses to use the system at reduced rates

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