Modo: Interoperability Can Help eCommerce Merchants Work With Wallets

Modo CEO, Bruce Parker, spoke with PYMNTS on the differences between interoperability and integrations in payment systems. We know they sound like similar words, but the differences between them are abundant and have a huge impact on how systems are connected. Modo is fully on the interoperability train – find out why below. 

It’s not always easy to tell the difference between the meaning of integrations and interoperability: Integrations are systems connected in the same way, while systems that are interoperable work together, but remain different.

If Modo’s founder and CEO, Bruce Parker, sent you an email, for example, how the message was sent is not at the forefront of your mind.

“You don’t have to know ahead of time how I sent it,” Parker told in an interview. “I don’t have to know ahead of time how you received it. It just works.”

The same concept can be applied to payments. To that end, Modo is focusing on interoperability for online merchants who want to accept new forms of payment like wallets, but don’t want to have to change their acquiring bank, processors, or eCommerce and enterprise resource planning (ERP) systems in order to do so.

Merchants, however, already know how to take a credit card, and that presents an opportunity: What if a wallet or another payment method, such as a checking account, could look like a credit card — even if the data, in fact, relates to an email address and password? That’s what Modo seeks to accomplish.

The concept extends to those sorts of capabilities that come on credit card transactions but not automated clearing house (ACH) transactions. If merchants need to put funds on hold, for example, they can think of that transaction as a card authorization. Modo, in turn, performs the equivalent function on the wallet, which might not be defined by the same term. Overall, the merchant “thinks” that it is interacting with a card, when, in fact, Modo is working behind the scenes to translate or interoperate with the wallet.


Head to PYMNTS to read the full article.


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