Day: February 11, 2009

Noca is the free paypal for merchants

A new payments service has arrived. bills itself as a solution to the relatively expensive but wildly popular paypal

This is fairly ambitious since paypal has somewhere between 220 and 300 million registered accounts depending on who you believe.

That said, this is the exactly right place to focus on if you are to enter this highly competitive market.

I have been watching paypal since 2000 (did due diligence on it for an investment by a bank) and think this one will be interesting…

Tech Crunch did a good review and the comments are very high quality too -including responses from Noca staff.

So how do they do it? They use ACH and interbank clearing networks so the consumer’s issuing bank takes the risk. I assume this means a purchase via Noca hits your account like a cash advance (which means less detail on – if you use that – and similar systems) and no frequent flyer points. Hard to check right now though since you need to have a US account to use it at least for now.

It is like the existing direct debit service on paypal except paypal don’t pass the savings onto the merchant and Noca does from what I can work out.

The merchant benefits more than the consumer, so it will be a supply led solution like a lot of payments solutions. This could be it’s downfall though since consumers won’t want to sign up.

Watch this space… There is also more on it at