Digital Transactions Authoritative, insightful and timely information for payments professionals
By Jim Daly
Mocapay Inc., one of the nation’s pioneers in mobile payments, hopes to expand its small footprint through a new distribution agreement announced this week with Merchant Link, a gateway and data-security service owned by JPMorgan Chase & Co.’s merchant-acquiring unit, Chase Paymentech.
Founded in 2007, Denver-based Mocapay already uses the Authorize.net gateway from Visa Inc.’s CyberSource subsidiary as well as a “couple of other payment processors,” according to chief executive Doug Dwyre. “However, this is the largest agreement we have made to date as it will give us more visibility to new merchants that are part of the Merchant Link network,” Dwyre tells Digital Transactions News by email
Based in Silver Spring, Md., Merchant Link connects 300,000 restaurant, hotel, and retail locations to payment services, enabling 5 billion transactions a year. “This partnership will give Mocapay increased distribution and exposure,” says Dwyre. “It also demonstrates how new technology can be infused into an existing, traditional business.”
Dwyre, a former First Data Corp. executive who has revamped Mocapay’s technology, pricing, and business model since joining the company in 2011, says Mocapay currently has “several hundred” active locations. “This announcement with Merchant Link will significantly increase this footprint,” he says.
A spokesperson for Merchant Link says Mocapay is the first mobile-payments specialist with which the company has worked. Customers of Merchant Link’s Mocapay-using merchants will be able to make mobile credit card and gift card purchases, and use loyalty programs and merchant promotions, through those merchants’ mobile apps.
“The collaboration with Mocapay is just another way Merchant Link continues to seek relationships that offer our clients more information and more data, enhancing their opportunity for great customer retention and revenue generation,” Merchant Link executive vice president Laura Meck said in a news release.
Mocapay says its technology works on any mobile handset. The company uses 6-digit, one-time-use codes, or tokens, to transmit payment data. The codes can be entered into a point-of-sale terminal manually, scanned as barcodes or QR codes, or work through near-field communication (NFC) technology. Mocapay’s system also can send and receive SMS (short message service) text messages.
Mocapay would not discuss specific revenue arrangements with Merchant Link, but says Merchant Link will directly bill its merchants and pass along a portion of the fees to Mocapay.
