Due to their exclusive nature, companies are able to monopolize a client’s mobile device when it comes to products and services within their niche. Once a company has a firm understanding of their target market and purchasing habits, they can tailor customized promotions and offers and deliver them directly to their customers’ mobile devices.Ĭlosed loop mobile payment systems have another tremendous advantage. This data can also be used to increase customer loyalty, and to drive upsells and cross sales. To start, companies can collect and analyze highly accurate data relating to their customers purchasing habits, and then use their findings to tailor very effective marketing campaigns. Clients can use their smartphones or tablets to check the balance within their closed loop payment system, top it up, or make purchases.Ĭompanies can benefit greatly from using these systems, with Tim Hortons and Starbucks having processed millions of mobile transactions using closed loop payments. These systems use apps to manage gift cards and accounts through mobile devices. Closed loop mobile payments are the mobile equivalent of this system. A closed loop payment can only occur between a spending account and a single, specific company. A closed loop payment is a transaction in which a client uploads money into a spending account that is linked to a payment device.

Loop mobile online payment