Self-checkout app maker AisleBuyer adds credit card capturing

AisleBuyer, which makes mobile applications that let you checkout at retail stores without going to a cash register, announced today that it is adding the ability to capture credit cards via its apps.

The addition means that AisleBuyer now competes directly with the hot mobile payment startup Square, except it doesn’t require clunky card reader hardware. It also moves your entire shopping experience to your phone — something that AisleBuyer has been pursuing since the company was founded in 2009. The company says that card capturing will be rolled out over the next few months.

Here’s how the card capture feature works: You take a picture of a credit card using one of AisleBuyer’s apps, and it will use optical character recognition (OCR) to plug the relevant card info into a secure form. You can then instantly use the card to make an in-store or online purchase, or send and receive payments using email or text messaging. You’ll still need to sign for the purchase on your phone, and you’ll get a receipt over email.

True to its name, AisleBuyer’s mobile apps let you make purchases anywhere in a store, without the need for waiting in line to checkout. The company takes the concept of self-checkout to the extreme, as you don’t even need to wait for a self-checkout kiosk (which are cropping up in more retailers) to become available. Its apps also offer consumers information about products and deals provided by retailers.

According to Dan Preston, CTO at AisleBuyer, the company’s platform is fully PCI 1 level compliant, which means that no personal data is stored on the phone or its servers. AisleBuyer also overlays its company logo over card images when they’re scanned, which will serve as a sign to consumers that local retailers aren’t stealing their credit card images. Retailers also have to sign up for accounts with the company, which means that they wouldn’t be able to steal your data without getting caught.

AisleBuyer users have already been able to plug in their credit card information by hand, but the ability to capture credit cards instantly will greatly reduce the barrier to entry for consumers. And since it doesn’t require any hardware, it’s a better option for local and large retailers, who only have to worry about relying on a single app. The card capturing capability will work alongside what AisleBuyer already offers.

We haven’t yet heard how much AisleBuyer will charge merchants for transactions, but we expect it to be competitive with Square and other mobile payment companies. The company currently only offers iPhone apps, but it’s working on Android versions.

The Boston, MA-based company was founded in 2009 and has so far received $4 million in debt funding.

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