Change your processing platform to Way4 and create new revenue streams

1. New platform to choose for issuing and acquiring innovations

If your issuing and acquiring portfolio needs to be moved to a new processing platform, Way4 is a strategic choice. Way4 payment solutions power the businesses of 130 banks, PSPs, processors, payment switching, telecom and oil companies worldwide. Many of them have become the first in their markets to take profitable payment niches. Here we present some case studies of issuers and acquirers who rely on Way4 to generate new payment streams.

There are several ways to leverage the innovations provided by Way4. Which one is right for your company?

If you need fully-outsourced, fully-managed services, you can trust your portfolio with Enfuce, Finland’s largest fintech startup. It is a payment processor with global PCI-DSS compliance. Enfuce runs its Way4 system in the cloud and ensures the fastest possible onboarding for its new clients.

What if your company wants to configure its payment offerings more independently? You can partner directly with OpenWay to arrange SaaS access to your Way4 installation and have your team trained on platform capabilities. For greater autonomy, Way4 can run in the cloud that you manage yourself, or on your premises. OpenWay develops Way4 and holds top rankings from Gartner and Ovum in card and merchant management and digital wallets software solutions.

2. Addressing pandemic-related trends

Issuing: digital cards with instant online delivery and activation

During the pandemic, consumers have developed new payment habits that are likely to stay long-term. They prefer contactless payments and payment instruments that can be obtained without a visit to a bank branch. Fintechs, neobanks and incumbent players are using Way4 to offer their customers digital cards so much in demand today.

MaaS Global, the provider of all-inclusive mobility app Whim, partnered with Enfuce to launch a card payment offering. Whim app users can receive a virtual Mastercard prepaid card and make mobile payments for public transport, taxis, rental bikes and cars, and other options. These open-loop cards can also be tokenized for use via Apple Pay, Samsung Pay and Google Pay.

Acquiring: omnichannel payments with dynamic merchant pricing

During the pandemic the world has seen “triple-digit growth in nontravel e-commerce”, according to McKinsey. Acquirers are expected to support digital payment methods. They would gain a strong competitive advantage to add the “true omnichannel” label to their offering. With many retail locations now closed, the consumer journey starts in browsers and m-commerce apps and finishes in designated pick-up points. Those who provide a seamless payment experience have higher chances of expanding their portfolio of online merchants.

At the same time, predicting a company’s retail sales volumes has become challenging. Among consumers surveyed in May 2020 by E&Y analysts, 51% agreed that “the way they shop will fundamentally change”. Many merchants will suffer a drop in transactions but still have to pay the full price to their acquirer.

Acquirers using Way4 can secure their existing client base expand it by offering dynamic multi-factor merchant pricing. This feature allows acquirers to adjust their fees to the merchant’s business conditions in real time. For example, you can automatically waive the terminal rental fee if the monthly gross sale total was less than a certain amount, or give discounts to those using online and touch-free acceptance.

Among OpenWay’s clients is one global acquirer who has configured dynamic personalized pricing for each of its 40,000 merchants. Its pricing schemes in Way4 may be based on over 30 transaction factors. The system can even analyze shopping cart items in real time, and charge the transaction fees or apply discounts accordingly.

3. Multi-currency payments

Issuing: multi-currency cards for payments and savings, with the overdraft option

The demand for multi-currency payment instruments has been rising steadily. People in both developed and developing markets are buying more goods from merchants located abroad. International payment schemes are facing criticism that their currency rates are unfavorable and the FX conversion logic is unpredictable.

Payment players can eliminate this problem by using Way4, which supports an unlimited number of currencies. When issuers handle currency conversion themselves, their cardholders will know the conversion rate in advance, and which particular rate will apply to the purchase in real-time.

Jysan Bank in Kazakhstan, who works directly with OpenWay, promotes multi-currency cards with cashback as a savings instrument. Its card product combines many accounts in different currencies linked to the same card. The card is replenished with cash or via money transfer. Customers can choose between 16 currencies and move funds between them via online banking anytime. This enables them to respond quickly to FX fluctuations even during the pandemic, when many bank branches and foreign exchange kiosks are entirely closed. When the lockdown ends, Jysan Bank cardholders will probably have developed two habits around the multi-currency card. They will use it to make payments abroad, and for managing savings at home.

Multi-currency cards are also great for attracting new clients. For example, National Bank of Oman offers prepaid contactless multi-currency cards ‘Badeel Travel’ to any Omani resident. It supports conversion of Omani rials into US dollars, euros, British pounds, Swiss francs, Indian rupees, Thai bahts, United Arab Emirates dirhams, and Saudi riyals.

Credorax (now part of Shift4) is one of the most successful cross-border e-commerce acquirers who uses Way4 to power DCC and MCP. This acquirer reports a CAGR of over 52%. Its website proudly says to the merchants: “Get paid in your currency of choice. Process in over 100 currencies”.

4. Corporate cards

Issuing: multi-currency purchasing cards with real-time spending control

Issuers rely on Way4 to provide their B2B clients with powerful real-time spending control for all types of corporate cards. It allows payments only for certain product categories and within the limits the corporation has defined. The limits can be unique for each corporate card or each department, or the same for all the employees.

If these cards are equipped with multi-currency functionality, a good exchange rate and low cash withdrawal fees, then employees will make payments more conveniently during their business trip abroad. They can stay focused on the business agenda, instead of searching for a currency exchange kiosk with decent FX rates.

Pleo, a Danish fintech company, partnered with Enfuce to innovate its business spending platform. The startup provides 5,500 businesses across six countries with smart commercial company cards and automated expense reporting. Enfuce was chosen to ensure that Pleo cards work anywhere and anytime as the startup rapidly expands across Europe.

Issuing + Acquiring = fleet cards with basket data analytics

OpenWay serves multiple fleet card processing companies. For example, Way4 manages card issuing, POS operations and basket data analytics for 8,000 gas stations in Europe. A driver can pay with international and local cards, fleet cards, co-branded cards and digital wallets. During authorization, Way4 differentiates between fuel and snack purchases, and applies specific processing rules to make drivers stay within the purchase limits of their employers.

Lotte Finance Vietnam is one of OpenWay’s clients who offer and issue loans instantly at the moment of purchase. Typically, this would be an instalment product, but Way4 also allows loans to be configured as charge account. The loan can be bundled with a payment card which customers can use in the future for various payments and transfers.

Acquiring: merchant financing

Many financial companies are entering the merchant financing market to meet increased demand. For acquirers this niche may prove quite profitable as well.

Acquirers can configure Way4 to support accounting for revenue-based financing. Merchants can apply for this feature online, and the acquirer can make due checks before granting approval. A merchant who receives funds will be charged monthly repayments in proportion to its revenue for that month. It is important that the acquirer is able to re-adjust the loan terms in the system – for example, refinance it or setup payment holidays for debtors most affected by crisis situations.

Issuing + Acquiring = loans in the form of corporate purchasing cards

OpenWay’s clients who use Way4 both for acquiring and issuing can provide financing in the form of purchasing cards for the merchant’s employees. These cardholders get instant access to credit funds. The merchant can of course set various spending limits and configure which goods each employee may and may not purchase. The accounting becomes digital and simplified, as cash is removed from the process. As the project acquirer, you can charge a fee for each of these value-added services. As the project issuer, you will receive revenue from card payment processing.

6. Payment niches for socially responsible companies

Issuing: cards with carbon footprint reporting and consumption advice

Indo, Iceland’s first challenger bank, chose Enfuce as its issuing processor and provider of innovative plug-and-play carbon footprint tracker. Indo cardholders can track monitor the CO2 emissions of their individual spending in categories like food and transportation, get actionable insights on sustainable lifestyles and improve their consumption habits accordingly.

Issuing + Acquiring = social cards

Distribution of social benefits via designated government service locations has stopped being a good option, due to coronavirus-related concerns. At the same time, unemployment rates are rising in many countries, and governments are pressured to take fast action and support financially challenged populations.

Issuers and acquirers of social welfare cards can help their communities by enabling financial inclusion of subsidized individuals and businesses. They can also strengthen their ties with local authorities and become the preferred partner for other corporate social responsibility projects.

On the issuing side, Way4 supports mass issuance of digital social cards and targeted delivery of subsidies to a large number of beneficiaries – through registration, direct transfers and user-friendly access to benefits. Due to real-time multi-factor spending control, the platform ensures that subsidies are used by eligible users and only for designated products and services.

On the acquiring side, basket data analytics feature helps improve consumption habits among the population. For example, during times of crisis gambling and alcohol spending may rise. Way4 analyzes purchases in real time and declines them if restricted items are detected. At the same time, it can apply discounts to subsidized items like medicine or child care products.

7. Digital wallet payments

Issuing: cards with tokenization for major mobile wallets

When a large issuer in Finland approached Enfuce to implement ApplePay for its card portfolio, the processor accomplished this task in just 3 months. Enfuce supports card tokenization for other major wallets including Samsung Pay and Google Pay.

OpenWay has launched dozens of tokenization projects for its direct clients, including the first market launches of Apple Pay and Samsung Pay in several countries.

Acquiring: QR-code payments for SMEs, with instant settlement option

Halyk Bank in Kazakhstan has been relying on OpenWay’s issuing and acquiring innovations for fifteen years. In 2018, it introduced VISA Scan&Pay QR code service, which boosted its expansion into the SME and transit market.

Typically, street vendors face inconsistent cash-flow and must wait to reinvest their funds into inventory purchases. What if an acquirer could offer instant merchant settlement to these vendors? They could immediately replenish their stock and increase profits. Way4 supports instant settlement for closed-loop payments, where the merchant’s acquirer and the consumer’s account provider are the same organization. For open-loop transactions of international payment schemes, settlement may be configured as same-day or several times a day. Acquirers can enable this Way4 service for all or selected merchants.

OpenWay’s clients have implemented the QR code technologies of all major payment schemes, including Alipay, Masterpass QR, UnionPay QR, and also domestic schemes

Issuing + Acquiring = digital wallet ecosystem

SmartPay, a Vietnamese fintech brand, has partnered directly with OpenWay to build a very successful mobile wallet ecosystem. Launched in May 2019, it developed rapidly within a single year and enrolled more than 1,000,000 consumers and 100,000 merchants across the country.

Way4 also allows partner services to be embedded into the wallet app and generate commission revenue. SmartPay has partnered with FE Credit, one of the largest lenders in Vietnam, and added its services to the wallet menu. SmartPay ecosystem members can easily apply for a loan, use it for payments and repay the balance via mobile app. This is a win-win model for everyone. The lender gets more credit product revenue, customers increase their purchasing power, and SmartPay grows its payment processing volumes.

8. Extra benefits to expect from the new platform

Whatever issuing or acquiring niches your company chooses, Way4 offers extra benefits to secure this player’s position in the market in the long term. This platform comes with global PCI-DSS certification, PSD2 and open banking compliance, and various loyalty programs for cardholders and merchants. You will be able to reduce the probability of internal fraud and human error by automating key payment processing routines – customer onboarding, chargeback management, clearing and settlement, risk monitoring and more.

Covering all the needs on a single Way4 platform turns out to be more cost-efficient than selecting and integrating numerous vendors.

If you find it difficult to choose between fully-outsourced processing services from Enfuce and the SaaS model from OpenWay, we encourage you to approach both companies and learn more about your options.

We at OpenWay think that our SaaS model is especially beneficial in the following cases:

You are planning a rapid expansion into payment niches that require a seamless combination of issuing, acquiring and white-label wallet innovations.
Certain regulations require that your payment processing infrastructure should reside within your country’s borders. OpenWay helps its clients to deploy Way4 in the chosen geography. The client can choose between local SaaS, local cloud and on-premise installation.
You are launching a greenfield project with little resources in the beginning, but your company’s IT and payment expertise is expected to expand soon. Once your team is ready to manage the payment infrastructure on its own entirely, OpenWay can assist you in migrating from SaaS to the cloud of your choice or to your on-premise facilities.