Globalgroup Investment Holdings has signed an agreement to integrate mFunds Global Payment Solutions’ PayVault payment service into its America's LayawayMalls online merchandise layaway program, the proprietary technology provider for payment and collection services announced July 12.
The company plans to integrate PayVault to offer a virtual demand deposit account its customers may use to pay for layaway purchases. Participating consumers authorize their employer to transfer to the account a specific amount each pay period, usually the exact amount needed to cover the payment for the online layaway item. Globalgroup will structure the specific withdrawals to coincide with the consumer's pay cycle, Globalgroup noted in a press release.
When in effect, the PayVault account becomes a three-way account between Globalgroup, the customer and the PayVault bank. Under agreement with the consumer, Globalgroup would be the only entity authorized to draw funds from the account, and the customer cannot otherwise spend the funds because no checkbook or debit card is associated with the account, Globalgroup said.
Conversely, if the customer chooses to cancel the order, any remaining funds would be returned to the consumer via a branded prepaid debit card issued by the PayVault bank, less a small cancellation fee, according to the release.
"Globalgroup forecasts that PayVault will lift sales of merchandise by 25% to 30% due to its convenience and adoption rates attributed to our target audience–the underbanked and unbanked consumer," Fred Rackers, Globalgroup president, stated in the release.