RBS Lynk to Offer Moda's ACH Online Payment System
Wolfe, Daniel, American Banker
ModaSolutions Corp. has signed its first merchant acquirer to use its eBillMe system for making online purchases through the automated clearing house network.
The Kanata, Ontario, technology provider announced Tuesday that RBS Lynk, the payment processing division of Royal Bank of Scotland Group PLC, will offer the system to merchants.
"It's a significant deal," Marwan Forzley, Moda's president, chief executive, and co-founder, said in an interview. "The integration of eBillMe into the services they have is a way to reach a large number of the merchants they service."
The deal is the first of several that Moda expects to make with merchant acquirers, he said, though he would not say when the next one might be announced.
The eBillMe system is similar to an ACH payment system that Nacha, the electronics payments association, plans to test next year for online purchases, but Mr. Forzley said Moda's system requires no work on the part of banks.
The system lets merchants accept payments through online billing sites by sending customers electronic invoices with instructions for setting up the merchant as a payee. This setup does not require any cooperation from the customers' banks.
"You pay eBillMe the same way you pay your phone bill or your electric bill," Mr. Forzley said. "It leverages what exists."
Moda is not trying to get bankers to change anything about their online bill-payment systems, he said, though he would welcome their assistance in promoting eBillMe. "The banks are important partners for us," he said. …