ProcessAway, card-acceptance application, is added to Apple's iPhone

A card-acceptance application for Apple Inc.'s iPhone was developed by Randy Palermo, a California entrepreneur. New application aims to underscore the rapid emergence of smartphones as mobile financial tools.

California software developer has submitted his software application, called ProcessAway, to Apple for review. It was expected that the review process could take up to a week. After that time the application could be offered through the Cupertino, Calif., company's AppStore.

Even though Mr. Palermo has no background in payments or banking he decided to compe up with this software application. And according to him there was a big need for it. He relied on a developer kit provided by the Authorize.Net gateway, an online payment system for small merchants operated by CyberSource Corp., a Mountain View, Calif., payment processor.

The big question is how much new service will cost. It is expected that the ProcessAway software will cost $19.99. Also there will be a free version, called ProcessLite. And it will offer the same features and functions but limit charges to a maximum of $5 per transaction. 

The software will be used to accept card payments at swap meets, street fairs, and antique shows, and it could also be used, for example, by mobile auto detailing experts, on-site consultants, or handymen. Mr. Palermo explained that in order to accept payments through their phones, merchants must manually input the customers' card numbers, expiration dates, and the transaction amounts. He assured that the system won't authorize it if there are any entry errors. 

Also he sees the advantage of card-reader support in fact that "with a card reader you get better rates." However, an updated version of his software is expected soon that would enable iPhones to store transaction data, though not card data, so merchants would not need to re-enter data for returning customers or recurring product sales.