Build applications for payment cards.
CardSpring Raises $6 Million In Funding
Cardspring is a new online company that is seeking to create an application platform that will allow mobile and web companies to write up applications for credit cards and other types of payments. This is a complicated process that other companies such as Groupon, FourSquare, and Living Social have tried to accomplish, but haven’t quite cracked yet, or at least not as successfully as they would like. Here’s some more info about this new company and how it works:
“Cardspring attaches itself to the payment network in a secure fashion on one side, and on the other it presents itself as a platform for developers to create payment apps via Web-standard APIs. It is a bridge between the two networks.
These applications could include things like electronic coupons, loyalty cards, virtual currencies, or yet-to-be-imagined commerce apps. For example, you could get a $10 off coupon online, enter your credit card number, and then when you go to a store and pay with that card, the payment network would recognize the card and give you the $10 credit. Or you could swipe your card and it could email you the receipt. Or it could check in for you. Swiping the card would trigger an application. What you see is a piece of plastic. What the network sees is an application.
If this sounds a little bit like what Groupon, LivingSocial, Foursquare, Square or Google are trying to do, it is because they’ve all been trying to crack this nut in different ways. They all want to close the redemption loop between digital offers and in-store payments. “Groupon threaded the needle with coupons,” says CEO Eckart Walther, but in his eyes daily deals are no more than a “wonderful one-off solution—We are literally inside the payment network.””
It will be interesting to see if CardSpring can pull off what other companies have not been able to yet!