The CPPO is happy to announce that IOT Pay has joined as a new member in 2021. IOT Pay is a Canadian payment solution leader, enabling merchants to accept Omnichannel payments in-store and online on a global scale.
Trusted by thousands of brands and merchants in North America, IOT Pay offers solutions for businesses to drive omnichannel commerce growth in a variety of industries. To gain insight into what’s driving change across the prepaid ecosystem, we conducted a Q&A with IOT Pay’s Co-Founder and COO, Max So.
Q: What do your think is the biggest force propelling the prepaid market’s growth today?
Max: The prepaid market is experiencing explosive growth especially in the closed loop segment. One of the fastest growth is in the retail sector driving prepaid growth with closed-loop offerings. The retailer gets to put money in the bank and deliver goods at a later date which is the reverse of having to purchase inventory and wait for money until after the customer makes a purchase. Retailers large and small are expanding these programs and the velocity is increasing.
Q: What’s one thing prepaid is innovating that’s not getting enough attention in the payments market?
Max: Prepaid card markets expanded in the U.S. over the pandemic as mobile wallets adapted easily to contactless technology demands by consumers. As technology and consumer demands change quickly the prepaid and mobile wallet products will continue to expand to meet new market demands and address new market opportunities.
Q: What’s the biggest prepaid innovation use case you’re seeing today?
Max: Prepaid Cards and digital wallets. As prepaid cards are augmented with digital wallets the business opportunities are endless. The opportunity for retailers to adopt mobile wallets and the ability to fund prepaid products makes this segment a blue sky opportunity.
Q: What do you think is coming next for prepaid innovation?
Max: Prepaid innovation around closed-loop marketplaces is a huge opportunity for innovation and customer retention. Further incentives, direct marketing and sharing are driving growth of existing programs and new programs are spinning up all the time.
Q: How can the prepaid market best position itself to navigate today’s regulatory climate?
Max: Issuers are constantly beset with the drag of fraud as many financial services are. Good people are the key to guiding your business through the various regulatory thickets. Risk and compliance teams need dedicated planning time to stay up to date with regulatory changes and anticipate future business needs.