By Jacqueline Snell, VP of Strategic Initiatives, mSHIFT
December 8, 2015
With AnyWhereMobile, merchants can offer private-label cardless payments to their customers that come with guaranteed good funds, reduced fraud and lower associated costs. The AnyWhereMobile Payment Network enables merchants to set up electronic private-label debit and credit cardless payments for in-store, online, in-app and gift card purchases.
Private-label payment cards, merchant-branded cards that can only be used for purchases at a specific merchant, are an important staple of the payments landscape. They provide many unique benefits to both merchants and customers beyond general-purpose payment cards, by creating a stronger bond between the merchant and customers. Business Insider reports private-label credit and debit cards generated an estimated $254 billion in purchase volume in the United States in 2014, and it has been projected to increase by 8% percent per year. Target offers store-card products under the REDcard brand and this accounted for 21% of total store sales in 2014 according to their company filing. The Neiman Marcus Group had 40% of its sales realized through private-label credit cards in 2014. This makes private-label cardless payments a perfect candidate for the mobile environment.
The issues surrounding current private-label payment options include that they are difficult and costly for merchants to implement, there is a high risk of fraud due to static card numbers and that funds may not be guaranteed. MShift has addressed these issues with its AnyWhereMobile private-label cardless payments which brings depository financial institutions into the transaction as issuers in order to reduce fraud and ensure that funds are guaranteed.
The AnyWhereMobile Payment Network enables merchants to set up electronic private-label debit and credit cardless payments for in-store, online, in-app and gift card purchases. These electronic private-label cardless payments can be integrated into the merchant’s existing apps, POS, and rewards and loyalties programs. The issuers for AnyWhereMobile are depository financial institutions which relieves the merchants of the burden of account opening, verification, payment processing, account management, and compliance. With AnyWhereMobile private-label payments, participating credit unions and community banks handle these banking related activities, allowing merchants to focus on their rewards program to attract, retain and build customer loyalty. The financial institutions guarantee the funds are good by either securing the funds in real-time from a deposit account or from a line of credit.
The AnyWhereMobile Payment Network, which also supports real-time P2P payments, uses a patented method that reduces fraud by eliminating all plastic card numbers and securing funds in real-time. This allows AnyWhereMobile to reduce the total cost of private-label payments for merchants by about fifty percent, and allows merchants the latitude to focus on building and expanding loyalty and incentive programs that are most successful with their customer base.