ZooZ is one several companies building new technology that attempts to improve the integration between marketing and mobile payments.

"The players in the ecosystem haven't figured out how to monetize the banner ads that are inside mobile apps," says Noam Inbar, vice president of product development for ZooZ. "The problem is consumers are adopting mobile tech faster than financial institutions and merchants."

Koupah and Banno are among the others companies pairing payments with advertising. ZooZ is targeting consumers who buy relatively small items while shopping.

"If you want a cup of coffee or a movie ticket you want to be able to pay for that with a tap, you don't want to have to redirect to another website or have someone call you back," Inbar says. "That's so 'five years ago.'"

In ZooZ's case it's building in-ad payments, which allow consumers to pay for merchandise directly from an advertisement rather than navigating to another site.

Users tap on a banner ad within an app, which launches ZooZ's payments engine. If users have previously registered with ZooZ, they don't have to enter a card number or other payment details. 

"The interface is quick and seamless," says Inbar, who says ZooZ is leveraging its core platform that allows payments within mobile applications. That technology is being used by more than 5,000 developers.

ZooZ is currently selling the new in-ad system to advertising agencies and is testing the technology with a couple of firms that it would not identity. It also would not disclose its fee structure for in-ad payments.

"They are inventing a new class of prepaid, you purchase the item before you receive it," says Richard Crone a payments consultant. "It's an actionable offer, and quantifiable, you know who specifically who is responding to the ad."

Other companies are also looking for ways to tie payments to advertising or other content. Ingenico, for example, envisions payments technology that can be accessed via television. And Koupah is using fees from advertising to offset payments processing costs.

Targeted advertising is one of the benefits that can be derived from the vast trove of data produced by payments, said Nick Holland, a senior payments analyst at Javelin Research, in an earlier interview with PaymentsSource.

Other companies, such as Banno, are developing advertising tech that financial institutions can tie to payments, as well as other financial products. A new Banno product called Kernel uses an application programming interface that integrates across different bank channels, such as mobile, online and phone. It analyzes a user's engagement to produce marketing that's specific to how the consumer uses each channel.

Banks can use this technology to match marketing and ad content to a consumer's desired channel, says Charles Potts, president of Banno.

"Banks should take steps to ensure they are the trusted advisor for certain types of payment transactions, so this convergence of marketing and payments around financial services should be something that banks are targeting," Potts says.

The technology can also drive partnerships between banks and retailers, Potts says.

"The model already exits, as banks work with businesses in local markets on payments offers and marketing," Potts says. "If you are a community bank or credit union, you have existing relationships with local businesses. The natural evolution of these relationships is to move into digital channels."

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