In the evolving mobile payments space today, ModoPayments tries to enable users to redeem offers and pay for things on their phones. They offer customers flexibility and allow the use of a basic phone (they make use of SMS facility) and accept all major cards for payments thus simplifying the process and increasing their reach in terms of customer base.
Based in Dallas, Texas and led by CEO Bruce Parker, ModoPayments is a startup with a goal to do exactly what their tagline says – “convert redemptions to payments and make payments mobile”. What does that mean? A supremely important part of their business plan is creating and tying value offers to the purchases they enable in order to enhance and promote their mobile payments solution. They create monetary savings that users can cash in on if they transact with ModoPayments instead of another tender.
- When people check-in to Modo at the store, they get instant access to offers, promotions, and deals from a wide variety of sources.
- When they checkout using Modo, everyone in the offer/deal value chain gets immediate verification and payment for the transaction.
- Plus, the consumer can use any card they want to fund their part of the purchase.
- The purchase information for payments using Modo improves the value of the next set of offers on both sides of the equation.
The reason for their popularity is the way they require no special infrastructure requirements, the ease of use for merchants, brands, and consumers, and finally how transaction data creates useful information for all parties. Modo closes the loop on the promotion, purchase, payment cycle.
They focus on information sharing and using the ModoPayments framework, users can track their entire purchase history, merchants can see anonymized purchasing trends to track/create effective offers and the location element will act as a security feature and help bolster the ability to relax chargeback percentages in order to turn those into profit. This is a major benefit for most merchants as well as customers.
On October 23rd 2012, ModoPayments partnered with Alliance Data Retail Services (a provider of over 100 private label and co branded credit card programs) to provide a series of social and mobile gifting functionalities via its Modo Connect mobile payments platform. The platform enables instant, mobile originated in store gifts, purchases and offers.