Switch, Gateway, or Hub? All and None of the Above

Originally posted on PYMNTS.com

For startups, it’s never easy explaining when they’re doing something the same yet different. The payments industry already has switches, gateways and hubs to connect the one to many, the many to one and the many to many — so, what makes Modo any different?

To Founder and CEO Bruce Parker, the answer is simple: Modo is not a switch, gateway or hub, but a utility for managing complexity by supporting those various types of connections from one end of a transaction to the other under a single operational face, external to the merchant’s firewall.

Switches are old tech, said Parker. They focus on helping merchants connect to multiple banks and card networks — and vice versa, on helping banks and card networks connect to multiple merchants.

Essentially, he said, a switch is a train yard for information. It’s payment transaction processing without any identification of people or clearing of settlements when things happen after the transaction.

Conversely, said Parker, Modo isn’t a switch because it also focuses on the parts of the lifecycle before and after the transaction — identity beforehand, reconciliation afterward.

Furthermore, a switch connects things that are like each other — i.e., all card networks — whereas Modo connects unlike elements such as eWallets as well.

Read the entire article featured in PYMNTS.com here


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