Payments gateway provider FreedomPay is testing a cloud-based mobile wallet service for merchants and consumers.

The Vibe mobile wallet, which is being tested in St. Louis, Mo., allows merchants to handle mobile payments, marketing and coupon delivery, says Julie Douglas, spokeswoman for Radnor, Pa.-based FreedomPay.

“When a merchant signs up for Vibe, we download our gateway drivers to their point-of-sale system and can link to their existing processor, or serve as their processor,” Douglas says.

Merchants who choose FreedomPay for processing simplify their security system and Payment Card Industry data security standard compliance costs, the company says.

Once Vibe has been added to the merchant’s payment system, the only feature visible to merchants and consumers would be an additional pay button for Vibe on the POS terminal, Douglas says.

Consumers in St. Louis can download the free Vibe application to Apple Inc. iPhones or Google Inc. Android handsets, Douglas adds.

“We are seeing significant traction in St. Louis as our target market for getting consumers going on this,” Douglas says.

FreedomPay will eventually roll out Vibe on a larger scale, with an eye on Chicago in the near future, she adds.

Vibe allows merchants to create targeted offers and messages. The messages can be prompted by factors such as weather conditions, the time of day, favorites lists and GPS location, FreedomPay states in a Jan. 24 press release.

Merchants can also develop short-lived messages, such as a restaurant owner during a slow period offering an incentive to consumers within a five-mile radius to reserve an open table. The merchant can then halt the Vibe message as soon as the restaurant tables are full, FreedomPay says.

Companion Bakery in St. Louis has incorporated the Vibe wallet at its stores, beginning its pilot test last November as an early adopter. Owner Josh Allen told the St. Louis Business Journal that more than 500 people signed up for a Vibe-based loyalty and rewards programs at the bakery in the first two weeks it was available.

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