Mode Global Holdings PLC (LON:MODE) said it will launch its novel payments and loyalty solution powered by Open Banking in the second quarter of 2021, which it said will provide merchants with “an alternative to rising card interchange fees” and boost loyalty amongst consumers.
The financial technology (fintech) company said the new solution has been announced to counter a recent plan by payments giant Mastercard Inc (NYSE:MA) to increase card payment fees, adding that the solution will initially be available in the UK but an expansion into Europe will be considered “in due course”.
Mode said that with its new feature customers will be able to manage traditional money and digital assets such as Bitcoin, make instant payments, earn rewards in Bitcoin and receive personalised offers from merchants through a single app. It added that the app also removes the need for customers to enter card details at checkout.
Meanwhile, Mode said later in the year it will launch a fast payments solution which it said will enable customers that don’t have its app to make purchases from e-commerce merchants accepting its payment solutions.
“Mode’s solution will connect customers directly to merchants, creating a much more personalised relationship, and providing merchants with the necessary insights to offer tailored rewards and drive loyalty. Merchants will be able to leverage Mode’s Bitcoin Rewards solution to incentivise customers with one of the world’s most sought-after assets when they transact”, the company said.
“Today’s announcement is an exciting step in our mission to disrupt the payments and loyalty landscape, and turn the Mode app into a financial super app – one that allows the digital native, modern consumer of today to grow their wealth and spend smarter with merchants”, said Mode’s chief commercial officer Rita Liu said in a statement.
“The customer and merchant relationship is highly fragmented, resulting in inefficiencies and additional costs; our Open Banking powered payment solution, and the ecosystem within which it will exist, is genuinely disruptive. We’ve had a fantastic response so far from both customers and merchants on this new proposition, and look forward to building our solution to meet this demand. We will be announcing the names of our launch partners in due course”, the CCO added.