In a general sense, closed loop mobile payments are those that enable consumers to load money into a spending account that is linked to a payment device – for example, a gift card for a specific company.Ĭlosed loop mobile payment solutions enable customers to manage their gift card or payment account via their mobile devices. An easier way to understand it is to think of closed payments as a gift card and open payments as a credit card. Unlike their closed counterparts, open platforms are connected to a personal account – a credit card for example – and don’t require a prepaid amount to exist in the system that needs to be topped up when the money runs out. Open loop mobile payment solutions allow users to pay at many different locations from one centralized digital wallet. closed loop mobile payments solutions.īefore we dive deeper into the advantages and disadvantages of these respective options, we’re going to define what exactly is meant by “open loop” and “closed loop” in the mobile payments context. Except in this context, it is a matter of open vs. In the hotly contested mobile payments space, once again we are seeing this debate manifest. It seems that for any major tech development, both open systems and closed systems are in play and in opposition.

Loop mobile online payment