Previously, the Montreal-based commerce company allowed customers to use any payment platform of their choice. As of March 27, Lightspeed began selling Lightspeed POS and Lightspeed Payments as one consolidated offering. Current customers will be charged a third-party processing fee based on a percentage of their revenue if they use outside payment services, Julia Cyboran, vice-president of brand at Lightspeed told The Logic in an email. La Presse first reported the news. (The Logic, La Presse)
Talking point: While the initiative is starting in North America, it plans to roll out the measure worldwide later. Lightspeed said it’s offering to help merchants pay for early termination fees from any existing payment providers and provide free terminals. In the company’s media handout, it describes third-party processing fees as standard industry practice. Shopify, for instance, charges merchants between 0.5 and two per cent for transaction fees if they use a third-party provider. Competitors like Boston-based Toast and Sunnyvale, Calif.-based Clover have similar requirements. However, business owners are already complaining about Lightspeed’s move.