Voice of the Industry

How payment processors catch digital white rabbits

Tuesday 16 May 2023 09:06 CET | Editor: Andra Constantinovici | Voice of the industry

Maria Vinogradova from OpenWay puts a looking glass in front of the strategies that processors and banks need to take into account to keep up with market demands.


When they first appeared, neobanks and fintechs might have appeared to payments processors as fantastic as the White Rabbit of Alice in Wonderland. But now, processors must keep up and catch them as clients if they want to secure diverse revenue streams in the Wonderland of Digital Payments. These neobank digital ‘rabbits’ need innovations tailored to their specific market niche, a high level of personalization for their payment products and services, fast time-to-market, and overall cost efficiency. How can a payment processor provide this and become a smart, digital Alice — a welcome companion for neobanks and fintechs? 

1. Practice agile to quickly catch up

Imagine that Alice catches up with the White Rabbit, offering valuable insights. Processors must practice agile, both internally and with partners and clients, so they can reassess project interim results to eliminate obstacles, find smart solutions, and fine-tune the technology stack. This speeds up the launch of digital payment products and services. Digital payments software providers serve payment processors who often try new business models, market niches, technologies, and customer segments. 

2. Prioritise true resilience

Imagine that Alice has the ability to be in several places simultaneously, so she knows what is going on with not just one rabbit, but several. When a processor’s technological partner has a network of partners around the globe, this strengthens discovery, delivery and support capacity. 

For example, OpenWay has a distributed network of hubs for R&D, delivery, and business development in EMEA, Americas, and Asia. There is an ongoing knowledge transfer between all hubs and teams. The distributed structure makes OpenWay resilient to high project loads and regional disasters. This benefits client processors while they are supported by the vendor’s local and global expertise.

3. Harness technology to make the world a better place

When some Wonderland characters faced execution, Alice stepped forward to protect them and succeeded. Similarly, payment companies are also called upon to demonstrate their social and environmental awareness through ESG. This makes them attractive partners for socially conscious neobanks and fintechs. ESG-oriented services such as transaction-based carbon footprint trackers for each cardholder, card-based distribution of social aid to financially vulnerable populations, and financial inclusion for unbanked consumers and SMEs via wallet are valid examples of how tech can be utilized for this purpose.

4. Save time and money with real-time data processing

If Alice hadn’t been quick to notice the White Rabbit jump down the rabbit hole, her adventures would never have started! Quick reflexes and response times are needed by processors to keep up with the demands of neobanks and fintechs. But most payment processing systems feature a separate front- and back-office that slows things down. 

Farseeing processors who choose a fully online platform avoid this problem because they can process both transaction data and internal configuration data in real time. All product and service parameters are applied in real time, all balances are updated immediately, and all related data is accessible immediately both inside the system and via over 1,000 APIs.

5. Avoid napping

Imagine that Alice during her adventures falls asleep in the middle of a conversation. Unresponsive systems are the nightmare of large e-commerce acquirers, international bank groups, and digital banks whose customers generate transactions 24x7 in multiple countries and time zones. 

If payments are unavailable, the damage to their business, brand reputation, and customer portfolio may be irreversible. A flexible payments platform with high-speed transaction processing and high availability helps processors and their customers survive peak sales seasons. OpenWay’s Way4 solution is one of the tools that prevents interruptions in data flow by routing transactions between international and local payment schemes, and even between Way4 and legacy infrastructure. 

6. Use customised carry-on luggage

The White Rabbit was always worrying about being late, but he still arrived on time because he traveled light without a bulky suitcase to slow him down. Similarly, most fintechs and neobanks lack the resources to deploy all possible products, scenarios, and technologies at once. 

They need innovations strategically packed in compact carry-on luggage, custom-tailored for their journey. A payments platform must be a proven carry-all for a processor’s diverse projects and innovations, but also offer a starter kit for launching an MVP in record time.

Conclusion and seizing the invitation to new adventures

By applying these principles, processors, and banks around the world have become successful in the Digital Payments Wonderland. Among OpenWay’s clients are processors whose volumes are growing, whose products are adopted in new geographies, creating new, exciting stories through unique innovations. 

With the metaverse, CBDCs, cryptocurrencies, and other disruptors on the horizon, there are plenty of opportunities for new, curious, ambitious players in the payments ecosystem.


About Maria Vinogradova 

Maria Vinogradova is the Head of Strategy and Market Intelligence at OpenWay. Maria started her career as an IT product manager and then as a digital transformation manager. At OpenWay she pioneered a role as concept designer and ambassador for one of the first white-label digital wallet platforms on the market. She has also participated in developing one of the first omnichannel payment platforms in the industry. In her current leadership role at OpenWay, she and her team consolidate insights on payment technologies and business cases to identify important business and technological trends and cases relevant to banks, processors, fintech start-ups, telcos, and PSPs all over the world. This results in the product and brand strategies that help OpenWay clients to achieve their goals in the ever-competitive payments market.

About OpenWay

Maria Vinogradova from OpenWay takes puts a looking glass in front of the strategies that processors and banks need to take into account to keep up with market demands.OpenWay provides the Way4 digital payments software platform for tier-1, mid-size and startup players – including card issuers, acquirers, processors, telcos, payment switches, fleet companies, and digital wallet providers. Gartner, Omdia and Aite have ranked OpenWay as the best digital payments software provider and the best payment solution in the cloud.

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Keywords: online payments, neobanks, digital banking, digital payments
Categories: Payments & Commerce
Companies: OpenWay
Countries: Europe
This article is part of category

Payments & Commerce


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