Globalgroup Investment Holdings Inc (GIHI), a technology solutions provider for payment and collection services, is integrating PayVault into its America’s LayawayMalls (ALM) online merchandise layaway programme. (view press release). By integrating PayVault, a payment solution from mFunds Global Payments Solutions, Globalgroup aims to offer a virtual demand deposit account (DDA) for its consumers to pay for laywaway purchases. The consumer can authorise their employer to transfer a certain amount each pay period to the DDA which is usually the amount needed to cover the payment for the online layaway item purchased. Globalgroup will then organise the withdrawals to meet the consumers pay cycle.
Through the scheme, the PayVault account becomes a three-way account between Globalgroup, the customer and the PayVault bank. Under the agreement with the consumer, Globalgroup will become the only party authorised to draw funds from the account, prohibiting the consumer from spending the funds as they will not have a cheque book or debit card associated with the account. If the customer chooses to cancel the order, any remaining funds, excluding a cancellation fee, would be returned to the consumer via a branded prepaid debit card issued by the PayVault Bank.