Thursday, 23 May 2019

We’ve just added a new case study on our website explaining how payments company Modo uses Open Platform to help consumers redeem loyalty points linked to their credit cards when they make purchases in stores or online.

You can read all about that here, but we thought this would be a great time for a post about the innovative payment services Modo provides and how Modo and Open Platform work together to make that happen.

 

“Open Platform is the best solution we know of to direct the movement and handling of money via a modern API.”

— Bruce Parker, CEO of Modo

 

Modo connects companies offering new digital payments experiences to payments systems worldwide through its payment data exchange, the COIN® Digital Payments Hub. Companies have a single, secure point of connection to Modo’s exchange, which allows them to send or receive just about any source of value to or from just about any destination without having to worry about integrations or data system requirements.

Modo wanted to offer payments companies a solution that combined multiple payment tools and funding sources, so that consumers could combine different assets, such as cash, credit, loyalty points, gift cards and coupons, to pay for purchases.

 

In Open Platform, Modo found a partner who could connect the complex payments infrastructure behind Modo’s loyalty programs to its credit card processing partners in a seamless and simple way.

 

So in 2017, Modo set out to find a banking and technology partner that understood this vision and could help make it happen. It needed an automated solution to transfer funds between credit card processors and merchants, so that cardholders could instantly redeem accumulated loyalty points linked to their credit cards.

In Open Platform, Modo found a partner who could connect the complex payments infrastructure behind Modo’s loyalty programs to its credit card processing partners in a seamless and simple way.

 

Using our Move Money and Account Origination services

 

Modo uses Open Platform’s Account Origination service to set up and manage FBO (pooled) accounts held by our FDIC-insured* banking partner, BBVA Compass. This allows Modo to move funds effortlessly between different entities, while keeping funds to be paid to external partners’ accounts separate. BBVA Compass’ digital core, the first in the US, also allows Modo to monitor account totals and transactions in near real time.  

Modo also uses Open Platform’s Move Money service to transfer funds into its pooled accounts in real time and transfer funds out to its external partners via ACH. This allows the company to move funds quickly and easily between multiple credit card processors and merchants using the fastest available settlement time when consumers redeem loyalty points at the point of sale.

 

Modo’s customers can now offer superior loyalty programs to consumers, who can make immediate savings on their purchases by paying with loyalty points linked to their credit cards.

 

Modo went live with Open Platform last year and we’re delighted we can provide this easily scalable solution, which will allow Modo to support a variety of use cases across a growing number of partnerships, all within the US regulatory framework. 

Modo’s customers can now offer superior loyalty programs to consumers, who can make immediate savings on their purchases by paying with loyalty points linked to their credit cards.

 

If you would like to find out how Open Platform’s suite of banking and payment APIs can help your company, get in touch. We’d be delighted to answer your questions!

–The Open Platform Team

 

 

 

 

 

*Certain accounts are eligible for FDIC insurance up to applicable limits. Learn more about eligible accounts and FDIC insurance limits.

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