How to migrate to a new payments platform without rocking the ship
In the face of competition, many large financial institutions have outdated payment platforms that impede progress and give rivals an advantage. However, migration seems risky when millions of cardholders and thousands of merchants rely on the smooth running of their ship. We at OpenWay, a leading vendor of the Way4 digital payments platform, share our experiences to explain why companies embark on migration regardless. You will discover how they achieved efficiency, innovation, and speed while ensuring seamless operations for customers. We also provide valuable tips on navigating your way to a successful migration.
Solid reasons to leave legacy behind
1. When you want to go cross-border
In this case, flexibility is needed for adapting to changing regulations. EquensWorldline, an OpenWay client, migrated to the Way4 acquiring platform when SEPA was introduced in Europe. This processor discovered that its platforms were too tailored to specific national markets, limiting cross-border capabilities. The new platform gave the company a faster time-to-market and the ability to support new international brands. Second, high-volume processing and scaling up should be possible. EquensWorldline was processing over 20 million daily transactions and experienced a manyfold increase in processing volumes within a year after migrating to a more flexible platform.
2. When you need a better customer experience
To enhance its customer experience, the National Bank of Greece (NBC) decided to migrate its platform from Base24 to Way4. Its legacy system was hindering process optimization and a unified customer experience. After successfully launching debit and credit card processing on the new platform, they migrated their payments switch. Centralizing their card business on Way4 improved operations, agility, and competitiveness in the Open Banking landscape.
3. When you need to consolidate different businesses
Halyk Bank, a leading Central Asian bank, consolidated multiple businesses like switch and CMS on Way4. They unified operations on a single platform, covering cards, merchants, switch, loyalty, web, mobile, and wallets. Moreover, they launched a platform for 4,400 service providers through an API layer, enabling telcos, utility companies, and various startups to access their services and generate new revenue. Halyk Bank also expanded its acquiring business to include e-commerce and QR payments, going beyond POS transactions.
4. When you are managing multiple legacy platforms
Nexi, a major European processor, needed a single platform to consolidate all of its merchant acquiring portfolios, previously outsourced to various processors. Migration to Way4 allowed them to maintain differentiation and avoid replicating legacy environments. This reduced costs, maintained high profitability, and ensured fast time-to-market, profitability and quick implementation across all service points.
5. When you anticipate rapid growth
Finaro (formerly Credorax) achieved astounding 1000% growth in three years, becoming a major e-commerce player. It was recently acquired by Shift4, partner of SpaceX, and expected to contribute ~$15 billion in 2023 end-to-end volume. By migrating to a flexible and agile platform, they enabled rapid expansion of PSPs and swift online onboarding for merchants. Through Way4, they provide omnichannel acquiring with dynamic and multi-currency pricing, online accounting, and other value-added services, also seamless settlement through APIs.
How to ensure your migration is smooth sailing
1. Evaluate and select the right platform based on robustness, scalability, flexibility, and ease of configuration allowing an early-bird innovation approach. Ask the vendor to clarify how the new platform will be embedded within different enterprise architecture layers. Find out how data will be utilized by channel applications and the overall data management architecture, and how accounting will be handled.
2. Map out the migration process early, considering peripheral applications and minimizing consumer impact. Embrace OpenWay's phased migration approach for a smooth transition without disrupting the customer experience.
3. Define clear roles and responsibilities from the start. OpenWay's implementation team, for example, guides clients via a Discovery Project with MVP, contract review, capturing of requirements, and definition of end-to-end processes.
4. Make sure IT and business share common goals. Establish a migration strategy that will constantly transform business vision into value and make clear the monetization of the investment into a new platform.
5. Develop a post-migration maintenance strategy tailored to your deployment model. Consider outsourcing, insourcing, or co-sourcing based on your needs, and engage actively with vendors for options. For example, Way4 can be deployed on premise, in the cloud, as a SaaS model, or in hybrid mode.
In summary, take charge of your migration project with careful vendor evaluation and platform selection. Minimize consumer impact, define clear roles, align goals, and establish a maintenance strategy for success together with a trusted vendor. In this way, the migration itself will go unnoticed by those who depend on your organization, but inspire them with new levels of flexibility, convenience, and offered services as you realize the full potential of your new platform!
Jean-Philippe Wolyniec is the Regional Director of Business Development France and Europe at OpenWay, the top-rated vendor of the Wa4 digital payment software platform. He has extensive experience in international projects and issues in payment services, as well as business development with leading institutions in their market, focused on payment, banking, merchant services and mobility solutions.