A team of experienced investors, technologists and fintech specialists, Mode has been delivering cutting edge financial services in the UK, Europe and across the world since its inception in 2018.
While you might know Mode as a Bitcoin app, its vision spans far wider than making Bitcoin mainstream. The company has ambitions to disrupt the financial status quo and build what it believes to be the financial products of tomorrow, today.
By leveraging the payments potential of Open Banking, Mode is well on the way to realising its ambition to bring its business customers a cheaper, safer, smarter alternative to card payments, powered by Modulr.
Mode’s vision is to build a next-generation financial ecosystem that connects consumers and businesses; combining the best in payments, investment, loyalty and digital assets to offer a full suite of financial services, in one single super app.
The result is Mode for Business - a revolutionary mobile payments solution designed to allow businesses to reap the benefits of both payments and loyalty. Leveraging Modulr’s API-powered, Open Banking-enabled platform, Mode’s business customers will soon be able to overcome traditional payment challenges; replacing cards at checkout with account-to-account transfers that are seamless, secure and mutually rewarding.
Reimagining the card deck, powered by Modulr
Card payments are a popular payment method in the UK and many businesses rely on them. According to UK Finance, in April 2021 there were 1.6 billion debit card transactions, 59.5% more than in April 2020 and 1.4% more than April 2019, and 258 million credit card transactions.
But debit and credit card payments are not ideal for the businesses that receive them. They tend to be expensive as for each transaction, a percentage of the value may be charged. That can add up to a significant loss of revenue for companies that process large volumes of payments. And card payments are slow – it can take up to three days for funds to settle in the recipient’s account.
Fortunately, Open Banking is paving the way for a new generation of payment services. It’s led to the creation of Payment Initiation Service Providers (PISPs) – third party organisations, like Modulr, that can initiate payments on behalf of customers. By harnessing this core capability, Mode’s business and merchant customers will be able to enjoy instant payments from one account to another, initiated by Modulr and powered by Open Banking.
Here's how Mode presents Open Banking payments
Giving end-users the smooth payments experience demanded by the Instant Economy, Modulr’s Open Banking payments solution will allow Mode’s business customers to route end-users directly to their banking apps on checkout.
Expensive card processing fees and cart abandonment will become a thing of the past, as merchants will be able to use QR codes to limit the steps involved in the checkout process and allow shoppers to seamlessly transact, in just a few clicks. Customers will choose their bank, be redirected accordingly and will then be able to authorise the payment, before being directed back to the merchant’s completion page. They won’t need to go through the hassle of manually entering payment card details, sort codes or account numbers; delivering an unrivalled customer experience.
Unlike other Open Banking Payment offerings on the market, Modulr’s connects natively with Modulr eMoney accounts. This means businesses are paid directly into their business accounts; making fund flows visible and reconciliation automated. Not only can this save a significant amount of time, but it will be especially important for Mode’s merchant customers who need to know when to ship the goods. With Open Banking payments, goods can be shipped with confidence because funds are transferred immediately to accounts via the Faster Payments scheme, without the risk of fraudulent customer chargebacks. Refunds can be processed easily and in real-time which further improves relationships with customers, building trust and transparency.
Mutually rewarding collections
By enabling businesses to accept payments directly from their customers’ banks via Open Banking, Mode will give its merchants the opportunity to invest more in their customers and to build relationships that extend beyond the transaction. This next-generation payments and loyalty platform will build on banking, financial and payment-related insights, allowing businesses to run targeted loyalty campaigns, with cashback on everyday purchases paid in Bitcoin, and to engage with consumers in new and innovative ways.
End-users will enjoy a seamless, digitally-native and rewarding experience while businesses will benefit from a process that’s every bit as easy and streamlined as accepting card payments, but in a far more cost effective way.
This is payments and loyalty in one single super-app, and it’s all underpinned by Modulr’s API-powered, Open banking-enabled platform.