Building a Closed-Loop Wallet cover art

Building a Closed-Loop Wallet

Building a Closed-Loop Wallet

Listen for free

View show details

About this listen

 Richard Moot: Welcome to the Square Developer Podcast. I'm your host, Richard Moot, head of developer relations at Square, and today I'm joined by Sophia Goldberg, who is the co-founder and CEO of Ansa. Sophia, would you be so kind as to give us a little intro about yourself and Ansa to let all of our listeners learn a little bit more about what it is that Ansa is and about you?Sophia Goldberg: Happy to, and thanks for having me, Richard. So I'm the, like Richard said, the co-founder CEO of Ansa. I've spent the better part of the last decade building in payments. So I was at a company called Adyen across commercial and product roles. I also wrote the book, the Field Guide to Global Payments to help anyone learn payments a bit better. And here at Ansa we're a stored value wallet as a service or closed loop payments infrastructure platform to let any brand or platform launch customer balances. So that can look like the Starbucks in app payment experience that can also look like the backend of transportation systems, microtransactions for gaming and everything and the like, but especially we've been building the last few years in the food and bev and retail space.Richard Moot: Very cool. And so you've built a lot of your integrations on Square and built a lot of this stuff for square sellers, but one thing I want to dig into with that is maybe tell us more about what is a closed loop wallet?Sophia Goldberg: Yeah, it's a niche part of payments infrastructure and the payments ecosystem, but a really important one. And so closed loop really just means where funds can be spent and so a wallet like the Starbucks wallet say, or for some of our brands that are on Square that we've built for closed loop means the customer adds prepaid funds. The brand can fund that wallet with incentives and those funds in that balance can only be spent with that brand. And so in turn, that helps drive retention frequency, really stickiness, but also on the brand side reduces cost of payments, drives cash flow, and can kind of become this really virtuous cycle of retention, loyalty and customer lifetime value.Richard Moot: Yeah, that makes a lot of sense. I mean one of the things that I know for particularly say coffee shops is you have these low ticket receipts and so it's actually in terms of percentage of fees that you're incurring on each sale is a little bit higher when looking at it marginally. So I'm guessing this helps mitigate that in many ways because you can then preload with these things and you're not incurring this on every single sale that coffee shops making.Sophia Goldberg: Exactly. And so for brands that have high frequency and lower average tickets, we call them Holt Merchants, HULT habitual use low transaction Value, which coffee shops or bakeries are a great example of if you have a $4 latte, which unfortunately in San Francisco I can't find a $4 latte anymore, that brand might effectively be paying up to 10% in fees because the fixed fees of every payment really add up. You're paying probably 20 to 50 cents no matter how large of a brand you are. And so by having a customer prepay into a balance and say, add $25 to spend over five coffees over the course of a month, that means you're only hitting those fees on that first time. You have the benefit of that float in the meantime. And you're also guaranteeing that I'm going to come back four more times, enjoy my coffee, and you're going to be saving about a dollar just on that one customer that month.Richard Moot: And so I'm curious, you've been in the payments space for a while now. What kind of really sparked that motivation towards building onset and building the solution?Sophia Goldberg: It started to come up earlier in the pandemic when I was seeing more and more different types of commerce trying to catch up and meet us where we were all stuck inside our homes and apartments and it kind of tapped into an observation I'd been having that commerce and payments have continued to diverge, especially in the US there's so many more different types of brands, merchants, customer experiences, we're using our phones even more, even in-store payments have an e-commerce experience or element whether you're maybe at say a kiosk or on your mobile phone. So all of the lines are blurring and I saw time and time again merchants not being able to actually support the customer experience they wanted because payments was often kind of the stick in the mud for them of what they could innovate and build and launch. And I'm a bit of a purist.I really love payments and I really love that our role is commerce enablement and that just didn't seem to make a lot of sense. And so actually in the early days we thought this was going to be a creator economy payment platform use case to enable online micro transactions, so think busking in the subway, but how you do that digitally, which is growing and happening all over the place and we couldn't find an infrastructure platform to ...
No reviews yet
In the spirit of reconciliation, Audible acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.