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Modo Forms Fintech Partnerships to Engage Consumers at the Point of Sale

Cloud-based payment services company Modo partnered with Bank of America Merrill Lynch, Alliance Data, FIS, Verifone, and Klarna, last week. The companies have teamed up to boost user engagement by creating Payout, Checkout, and Loyalty Events for online retailers.

Sheryl McKenzie, VP of products and capabilities for Alliance Data’s card services said that the benefit of adding marketing offers and rewards is to “deepen the customer’s connection with the brand and simplify the experience of card-based loyalty programs.”

The three types of user engagement events include:

  • Payout Events
    Helps banks disburse funds across the globe to any endpoint. Fund sources can range from a traditional bank account to a digital wallet. Bank of America Merrill Lynch is among the first to implement Payout Events.
  • Checkout Events
    Enables users to checkout anywhere with any method of payment, including the use of loyalty points, gift cards, and vouchers. Klarna and Verifone are among the first piloting this technology.
  • Loyalty Events
    Allows shoppers to combine multiple rewards and loyalty programs to make a purchase without having to share and manage sensitive identity and payment data. FIS, Verifone, and Alliance Data are among the first to implement this solution.

“We can leverage Modo’s service to seamlessly exchange payment event data across disparate retail systems in store, online and through the mobile channel,” McKenzie stated. “At Alliance Data, we are bringing together the breadth of a large marketing-focused corporation with the agility of a startup partner to accelerate the delivery of innovative payment and loyalty capabilities.”

Founded in 2010, Modo exchanges payment data across platforms on behalf of banks, payment networks, and providers, enabling them to store, share, and track payment event data. The company presented at FinovateFall 2016, where it showcased its Modo Digital Payments Hub. This announcement is the first marketing effort in a long time for the Austin-based company, which just emerged from a two-month “reverse stealth” period last week. Before the quiet spell, Parker was interviewed by Dallas News, revealing his thoughts on the future of payments.