merchants

BORICA: The Migration to the WAY4 Card Management System is Underway

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BORICA gathered nearly 100 client representatives from the Bulgarian banking sector together for a seminar dedicated to the BORICA New Generation program. This project to implement a new, modern platform for card authorization, processing and real-time fraud prevention started at the beginning of 2018 and is expected to be completed by the middle of 2020. The WAY4 software solution is developed by the leading software supplier, OpenWay. Its card management, terminal and fraud prevention technology provides reliability, security, flexibility and a high degree of parameterization to support rapid deployment of new products and services. 

"There is a large-scale project of the bank migration to the new payment platform, including ATM management, POS switching and merchant acquiring, 3D Secure e-commerce gateway, and card issuing. From now on, banks have to plan and budget for the migration within their organizations. The process itself includes participation by both banks and BORICA and a number of subcontractors, which requires a high degree of consistency in mutual work," said Miroslav Vichev, CEO of BORICA.

The WAY4 card solution is available on a SaaS basis.

"It is complex and multifunctional and also includes modern fraud prevention and risk analysis functionality, which offers much greater possibilities than that we have had so far," explains Radoslav Dimitrov, director of cards and terminals, BORICA.

WAY4 also helps with the implementation and marketing of new products and services within a short timeframe, streamlines processes, services and functionalities and ensures a high level of service availability. "The system is duplicated in two separate locations, each of which has standby capacity," he added.

"We chose the WAY4 CMS (card management system) because of its rich functionality. The ability to parameterize products and services enables banks and users of the system to quickly achieve their business goals," explained Anna Angelova, director of payment services at BORICA. "The system is offered on a cloud service basis, which allows customers to save money and gives them a high degree of flexibility when launching new products and services," she added.

The migration process also involves transferring participants with their own authorization systems to the newly-built National Switch, plus the migration of ATMs, POS terminals and 3D Secure to WAY4.

"The ATM network management and monitoring system will be offered as a service and can be used by all banks in Bulgaria, not only those in the BORICA card model," said Anton Borikin, head of ATM payment acceptance and POS, BORICA. The bank's payment levels will depend on the functionality of the bank, he added.

The WAY4 system also has strong functionality to prevent card fraud with high speed and reduced response times.

"In practice, fraud monitoring is integrated with the card management system, which includes risk levels and scenarios that trigger automatic alerts," said Yassen Yanev, head of card fraud protection at BORICA.

"The migration schedule of each institution, as well as its financial dimensions, depend strongly on the business priorities and the specific resources and time available at the banks," said Katerina Blagoeva, program manager "BORICA New Generation". Balgoeva expressed the readiness of the team to cooperate as efficiently as possible with banks in their transition to the WAY4 system.

Source: BORICA official website

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Acquirers on WAY4 Platform to Benefit from NEXO/ISO 20022 Deployment

Brussels, 9 October 2018

OpenWay, a recognized leader in digital payments software, has implemented the nexo Acquirer protocol on the WAY4 platform. Now acquirers who run their payment processing business on WAY4 can use ISO 20022 to enhance their payment acceptance interfaces with extended transaction data and improved interoperability across their acquiring networks.  

The rapid development of new payment acceptance technologies, next-generation terminals, and new collaborative models in the payment market have driven the adoption of ISO 20022. Compared to ISO 8583, the incumbent standard for card payments, ISO 20022 enables greater security and flexibility. This is important for easier customization and supporting value-added services based on transaction data. The protocol caters for growing diversity in the payment industry while maintaining standardization and interoperability.       

“Open and technology-neutral, the nexo Acquirer protocol strikes market players by its business-oriented nature and great potential for cross-border growth. Our customers can leverage it to reach a new level of financial services personalization thanks to the XML-based format which significantly enriches transaction data. WAY4 users can reduce maintenance costs when growing acquiring network as the protocol is completely independent in terms of terminal manufacturers, hardware and acceptance technology,”- comments Dmitry Yatskaer, CTO at OpenWay.   

Acquirers on WAY4 can deploy the nexo Acquirer protocol to connect merchants directly or via any intermediary, such as payment facilitators or service providers. The protocol can be used to connect any types of payment acceptance devices, such as POS and mPOS, including smart Android-based terminals. The protocol handles all industry standard transaction types, while ensuring reconciliation among the different parties involved in the transaction processing. 

The WAY4 system is intuitively built to analyze the transaction information in real time, including level-3 data. It supports a variety of value-added services such as tokenization, dynamic currency conversion, loyalty and coupons based on customer behavior analysis. 

nexo standards is an international association dedicated to enabling fast, interoperable and borderless payments acceptance by standardizing the exchange of payment acceptance data between merchants, acquirers, PSPs and other payment market stakeholders. nexo’s messaging protocols and specifications adhere to ISO20022 standards. Being a member of nexo standards, OpenWay is able to support new protocols quicker and help its customers on WAY4 to deliver a better payment experience.

Two QAZKOM Innovational Products Have Been Awarded by the Big Four International Experts at a Time

Source: Qazkom press-release

Kazkommertsbank (Qazkom), a member of Halyk Group has become a winner in two nominations of the Asian Banking & Finance international magazine at a time. A special jury composed of representatives of the following international consulting companies: Deloitte, Ernst and Young, KPMG and PwC — awarded two innovational products of Kazkommertsbank: QR-code payments — in the «Best Mobile Banking Initiative — 2018» nomination (Mobile Banking Initiative of the Year) and Western Union online transfers via Homebank in the «Best Innovational Initiative — 2018» nomination (Digital Banking Initiative of the Year).

"While the entire world was watching FIFA, we were determining the champions in banking —over 200 best banks and insurance companies out of almost 40 countries are among them. I would like to thank the jury members for selecting the winners," — Tim Charlton, Editor of Asian Banking and Finance and Insurance Asia magazines, said at the awarding ceremony.

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The jury of the contest was impressed with successes of Kazkommertsbank, which is aimed at implementation of the new technologies into the banking sector of Kazakhstan, where people still prefer paying cash. The experts noted that the Bank takes into account the market trends, successful world practice and consumer preferences, which makes him a real leader of innovations.

"We devote, let’s say, the last awards in the Bank’s history to those customers, who make us be up to the time and even one step ahead of the time. 20 years ago Kazkommertsbank launched the first Internet-banking, 15 years ago — it was the first bank in CIS that offered chip cards and cash-in ATMs to its customers, 5 years ago — it proposed mobile proximity payments to Kazakhstani people, and a half a year ago it performed first QR-code payments. Today, when we are at a final stage of integrating with Halyk Bank, we are transferring the spirit of innovation and leadership into the integrated Bank together with our technologies", — Ulf Wokurka, CEO of Kazkommertsbank commented.

Kazkommertsbank has become one of those few banks in the world that mastered QR-code payments based on the mobile solution of Visa International Payment System in 2017. Only a few countries in the world, including India, Singapore are widely using QR-code payments.

Bank started implementing the new service from the most complicated segment, where one could not imagine non-cash payments before – food and clothes selling markets, street sellers. The growth dynamics of QR-code payments equalled 600% since they were launched in December 2017. Today, Bank keeps connecting dozens of merchants a week to the new mobile service. 

The second service of the Bank, which was awarded the Digital Banking Initiative of the Year, — Western Union money transfers via Homebank. The customers have quickly assessed the simplicity of using, speed and the lower cost of this service. As a result, WU online transfers have exceeded the number of money transfers performed via operating offices.


Implementation of QR-code payments solution has been a joint project of Kazkommertsbank (Qazkom) and OpenWay, a top-ranked payment processing software vendor.

What to Consider When Choosing a Technology Partner to Power your Payments

Published at: Business Day

Customers are demanding sophisticated financial products and services anytime, anywhere, using any channel.

From Africa to Europe, the Middle East and the US, the change in customer expectations is a significant global trend. Consumers are not only comparing banks with other banks; their expectations are also rapidly being shaped by technology companies such as Uber, Airbnb, Apple and other facilitators that ease their lives and give them the desired experience. And consumers and businesses are now demanding sophisticated financial products and services anytime, anywhere, using any channel.  

To deliver on these new expectations requires the right type of digital capabilities behind the scenes. Technology platforms must be flexible, scalable and work end to end. Naturally, they must also be secure and work across all channels – the ones we know about today and the ones we don’t yet.

Yet banks and processors also have to balance seemingly conflicting demands. They want to cut costs and time to market but are constrained by their legacy IT infrastructure. This is complex and costly to maintain, and it restricts their ability to innovate. Then there is the need to maintain regulatory compliance, interoperability and 24/7 operations.

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Fintech start-ups are also piling on the pressure. These newer, more nimble players are not encumbered by legacy. They can adapt more easily to the demands of customers and regulators. The fintechs may not have scale today, but their technology allows them to compete strongly in the future.

The right type of technology helps businesses think as well as act differently. In this way, technology drives both a technical and a cultural mindset.

Considerations when choosing a partner

If the future of payments is to be open and collaborative, then banks and processors need to have the technology in place to capitalise on opportunities. This often means better rather than more technology.

Payment systems should allow different business models to run on the same platform. OpenWay’s WAY4 platform enables concurrent customer propositions and business models, both new and traditional. It offers a variety of credit, debit, prepaid and multi-currency services for mature customers, and supports financial inclusion use cases for those who are unbanked or new to financial products.

Loyalty, deposit, payment and non-payment services and online interoperability are musts for successful wallets. These five elements unite clients as varied as Equity Bank in Kenya, Asia Commercial Bank and SmartNet in Vietnam, B1NK and AzeriCard in Central Asia, Advanced Info Services in Thailand and many others that either create their own wallet products or use an existing wallet ecosystem on WAY4. Openway clients target both unbanked consumers and demanding tech-savvy users.

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Payment partner considerations

Payment method-agnostic
Open and API-rich
Scalable and flexible
Cross-border
Truly digital (across B2B, B2C, B2G, C2G and so forth)
Supports various business models
Grows your ecosystem
Backed by an experienced team

Payments live in an ecosystem. Banks and processors are increasingly having to consider how and where they operate within this wider ecosystem — and naturally with whom. Their technology should facilitate greater co-operation or competition, and sometimes both. Ideally, payments platforms should be payment-method-agnostic, open and supportive of a rich library of APIs for everything from risk management and scoring to tokenisation.

Scalability and flexibility are critical. The chosen technology platform should have the flexibility to scale up to meet business needs and the robustness to cope with sales spikes. One of Openway’s biggest clients handles up to 2,400 transactions per second with no latency. This bank has achieved 140-million active debit and credit card portfolios with a variability of products and more than 40 configurable parameters for each of them.

Invisible security is key. That the platform should conform to the latest versions of EMV, 3-D Secure and PA-DSS is a given. In addition, a good technology partner should offer a range of fraud screening and risk management services. OpenWay provides an anti-fraud engine with about 80 customisable parameters, including payment and non-payment transaction data, customer and device information and historical analysis, which bring seamless security at every customer touch point.

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Personalisation: one size fits no one in payments. Openway worked with Nordic processor Nets to implement standardised products with minimal configuration options on WAY4, enabling quicker speed to market for end clients and with Borgun (Iceland) to offer merchants personalised pricing and value-added services. Plus the product user experience is personalised in real time due to the event-driven configuration.

Omni-channel is the default for banking and payments today. Customers should not see or feel the awkward join as they bank or shop online or in person at a branch or store. Openway helped Halyk Bank, one of the most innovative financial institutions in Central Asia, power the front-end omnichannel experience across e-commerce and face-to-face acceptance.

Commerce becomes more and more borderless. Top European processors have built distributed installations worldwide on WAY4 for issuing, acquiring, gateway and wallet services. For example, Six Payment Services successfully migrated close to 40 banks to WAY4 within two years. When the client’s digital strategy or domestic/regional regulations require on-soil presence, the platform allows the combination of cross-border centralised installations with local ones in the distributed processing environment. Good examples are Nets serving its banks throughout the Nordics, and Credorax working with merchants across Europe, both on the WAY4 platform.

Knowledge, skills and experience count for a lot in the brave new world of payments. OpenWay has more than 20 years’ experience in managing complex projects in multiple countries worldwide. The company has built national payment switches for countries, helped facilitate social payments for governments and interoperable mobile payments for banks and operators, and managed fuel card payments for oil companies. Leveraging this, the National Bank of Greece recently replaced its legacy mainframe systems with the modern, future-proofed WAY4 platform, and received recognition for delivering the best large-scale IT project in 2018.

The WAY4 system is an open, digital-payments software platform, used by 135 banks, processors, telecom and oil companies across the globe. OpenWay has been independently ranked as a market leader in card and merchant management by Gartner since 2009 and Ovum in 2015-16, and as a market leader in digital wallets (Ovum 2016).

THE ANALYTIC REPORTS

For more information, click to download the analytic reports.

Promsvyazbank to Start Accepting Alipay Payments in Russia

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Promsvyazbank has announced the launch of a pilot to accept Alipay.

Promsvyazbank is now offering its merchants the ability to accept payments via Alipay without the need for additional devices or applications. The new functionality is available via the existing point-of-sale infrastructure, and funds for Alipay sales are transferred daily.

Promsvyazbank was supported in the launch by OpenWay, a software provider and developer.

"This project is first and foremost about helping our merchant customers develop their businesses. This new functionality will enable Promsvyazbank merchants to potentially increase turnover and revenues at a favorable MSC rate," commented Mark Baranov, head of acquiring department at Promsvyazbank.

The Alipay application is used by 520 million customers, and its annual turnover in 2016 exceeded total cash turnover in China. Alipay is the most popular mobile payment system in China with a market share of 54%.

Consumers use Alipay most often to purchase jewelry, cosmetics and perfumes, premium brands, food products in supermarkets, souvenirs and air tickets.

About Promsvyazbank

Promsvyazbank is a top-3 private bank in Russia and is universal commercial bank, whose history totals 20 years. “The Banker” magazine includes Promsvyazbank in 500 largest banks of the world by the size of own capital. PSB total assets exceed 1,2 trillion rubles and was recognized as one of 10 Systemically important financial institutions by Central Bank of Russia.

Leading Processor in Bulgaria Starts Digital Transformation on WAY4

 Mr. Radoslav Dimitrov, Head of "Cards and Terminals" Division

Mr. Radoslav Dimitrov, Head of "Cards and Terminals" Division

BORICA AD, a company with 50-years history and experience in providing specialized solutions for over 30 financial institutions in Bulgaria and neighbouring countries, has chosen the WAY4 digital payment software platform to transform its core business. The platform is licensed by OpenWay, a global software provider ranked a leader in digital payment solutions and white-label digital wallets.

BORICA AD has launched this digital transformation project to enhance its existing and provide new value-added services. OpenWay will supply a full end-to-end card processing solution for both issuing and acquiring including real-time fraud prevention and detection, e-commerce, mobile wallet and tokenization. The new platform shall enable BORICA AD’s future business growth including cross-border services’ expansion.

Without the new platform, BORICA AD would not have been able to scale the growing business and boost ROE. The processor was looking for a solution that would support local, regional and international card payments, ensure uninterrupted business operations, provide automation of back office processes, and increase speed to market.

The decisive factors in choosing OpenWay and the WAY4 platform were its flexibility as well as the commitment to deliver on time and allow BORICA AD to expand its new business services to include tokenization, digital wallet, new card products, new institutions among others. 

“The project known as “BORICA New Generation” will impact significantly the whole card payment environment in the country”, says Radoslav Dimitrov, head of “Cards and Terminals” Division at BORICA AD. “The tender procedure has been held among more than 10 leading international card system vendors and completing all its stages took us nearly two years. OpenWay managed to cover all our requirements for flexibility, security and business expectations. Today we are confident that this partnership will change the future of card business in Bulgaria”, he adds. 

“We appreciate that BORICA has entrusted the transformation project to OpenWay. We have extensive experience in analyzing the architecture and delivering highly reliable solutions for national and regional switches, and are ready to share this expertise with the project team,” - notes Sophocles Ioannou, Regional Manager at OpenWay.

About BORICA AD

BORICA AD has developed and nowadays provides and operates the technology infrastructure of the Bulgarian payment industry. In doing so, the company has been a trusted partner of banks and payment institutions for nearly 50 years.

The Company is committed to providing modern and innovative solutions to financial institutions.

Company’s services focus on payment services, card services incl. authorization and terminal driving, fraud prevention services, secured card payments, HCE, mobile payments and Card Management System as a service; SWIFT Service Bureau; e-signature and e-invoice, Infrastructure services. BORICA AD acts as a third party processor (TPP) for MasterCard and VISA. The Company is licensed by the Bulgarian National Bank to operate three payment systems (BORICA Payment system for card payments, BISERA 6 for credit transfers in domestic currency and BISERA 7 for SEPA credit transfers and direct debit in Euro).

Acquirers on WAY4 Platform Now Can Serve Marketplaces

 Source: Stichting Nationaal Museum van Wereldculturen 

Source: Stichting Nationaal Museum van Wereldculturen 

OpenWay, a WAY4 platform developer and recognized leader in software for bankcard acquiring and issuing, digital banking, omni-channel payments and e-commerce gateways, has enhanced its acquiring solution to enable customers to attract and serve merchant aggregators and marketplaces.

According to the study Rise of the Global Market Places study, prepared by the E-commerce Foundation and Nyenrode Business University, marketplaces will control 39% of the world’s entire e-commerce market by 2020. For acquirers and PSPs, serving marketplaces promises attractive profits, but also requires tailored solutions to meet the specific needs of marketplaces. 

This includes setup of complex merchant hierarchies and fee sharing schemes, seamless merchant onboarding, and smooth settlement among multiple parties. Additionally, there are special requirements around authorization and clearing processes, as a single order may often comprise goods purchased from single or different merchants. This means that different parts of the order may be shipped and delivered separately. At checkout, the processing system should be able to generate a single authorization for the total order, but also later process a separate clearing transaction for each shipment. 

With recent enhancements, the WAY4 platform meets the needs of marketplaces, which in turn opens up new acquiring opportunities for OpenWay’s customers worldwide.

On top of these business specifics, marketplaces want to offer their customers local and global payment methods, as any other e-commerce business with cross-border reach. They want to process payments in multiple currencies in 24/7 online mode, complete sales in a quick and secure way, and access payment information via a convenient online portal. This functionality is already considered a must-have in our digital era, so OpenWay has gone further. We allow our acquirer customers to design and deploy new business models together with their merchants. This includes value-added services such as wallets, loyalty schemes, dynamic currency pricing, and many more. 

WAY4 Acquiring is an end-to-end solution for acquirers, PSPs, PISPs, and payment processors that provides both merchant management and e-commerce gateway functionality. The solution powers 14% of acquiring transactions in Europe and helps payment providers to onboard and serve any type of e-commerce or brick and mortar merchant. 

Online back-office on WAY4 supports accounting, comprehensive fee structures, flexible merchant hierarchies, unlimited pricing and settlement currency pairings, chargeback management, and advanced tools for online fraud prevention. WAY4 E-commerce Gateway is built to accept both card and non-card payment methods in an omni-channel environment and accommodate flexible authorization scenarios. The solution supports the up-coming 3-D Secure 2.0 standard and strong customer authentication requirements outlined by PSD2. It is proven to work online 24/7 with high transaction volumes.

Indonesia Goes Chip With OpenWay

 Bank Muamalat Indonesia (BMI) is now fully compliant with the National Standard Indonesian Chip Card Specification (NCICCS) on both the issuing and acquiring side with the support of OpenWay.

Bank Muamalat Indonesia (BMI) is now fully compliant with the National Standard Indonesian Chip Card Specification (NCICCS) on both the issuing and acquiring side with the support of OpenWay.

Bank Muamalat Indonesia (BMI), one of the leading Islamic banking providers in the country, is now fully compliant with the National Standard Indonesian Chip Card Specification (NCICCS) on both the issuing and acquiring side. This is a government requirement to improve card security and the customer payment experience in Indonesia. The project was completed with the support of OpenWay, ranked #1 by Gartner in digital payment software solutions and a leader in digital wallets by Ovum, whose WAY4-branded card processing solutions BMI uses.

Now BMI can offer its customers chip debit and ATM Visa cards. OpenWay helped make this possible by supporting issuance of dual application cards – international VSDC (Visa) and domestic NSICCS – and setup of 6-digital online PIN in the WAY4 processing system. BMI can also service NCICCS-compliant cards across its ATM and POS networks. 

“Providing excellent banking services is the number one priority for BMI. We believe that the new card standard enables us to provide a higher level of cardholder protection against fraud, thus improving the customer experience and reducing bank’s losses from unauthorized transactions with stolen or lost cards. The support of the OpenWay team in the NCICCS certification process helped us to overcome technical challenges and complete the project faster”, – Saladin Effendi, Head of IT Division of Bank Muamalat Indonesia 

“OpenWay has participated in national projects of different sizes, from enabling compliance with national card standards and connection to domestic payment gateways to developing and implementing end-to-end national and interbank switching platforms. We are always ready to support payment institutions in Indonesia and Asia-Pacific build secure and seamless digital payment ecosystems”, – says Rudy Gunawan, Managing Director, OpenWay Asia. 

NSICCS is a national standard for chip cards which Bank Indonesia has nominated as the payment technology benchmark for all ATM and debit card providers in the country. The goal is to upgrade of national payment system to an international level of security and to mitigate fraud risk. Adoption of NSCCS is one of the phases in the implementation of the National Payment Gateway aimed to strengthen the independence of the Indonesian payment system and increase interoperability between all payment instruments and channels in the country. 

About BMI

PT Bank Muamalat Indonesia Tbk (“Bank Muamalat Indonesia”) commenced its journey as the first Sharia bank in Indonesia on November 1, 1991, or Rabi’us Tsani 24, 1412 H. The establishment of Bank Muamalat Indonesia was instigated by Indonesian Council of Ulema (MUI), the Association of Indonesian Moselm Inttelectuals (ICMI) and local moslem businessmen who later gained supports from the Government of Republic of Indonesia. Since it officially began operating on May 1, 1992 or Syawal 27, 1412 H, Bank Muamalat Indonesia keeps on innovating and releasing sharia financial products such as Sharia Insurance (Asuransi Takaful), Muamalat financial institution pension fund (DPLK Muamalat) and sharia multifinance company (Al-Ijarah Indonesia Finance), all of which are breakthroughs in the country. In addition to these, Banl’s product Shar-e launched in 2004 which was also the first instant saving in Indonesia. The Shar-e Gold Debit Visa launched in 2011 obtained an award from the Indonesian Museum of Records (MURI) as the first Sharia Debit Card with the chip technology in Indonesia; as well as a comprehensive e-channel services such as internet banking, mobile banking, ATM and cash management services. All these products are pioneers of sharia products in Indonesia and have become the most significant milestone in sharia banking industry.

As there is more acknowledgment on the Bank’s capacity, Bank Muamalat Indonesia expanded its business by adding more branch offices all over Indonesia. In 2009, the Bank obtained a license to operate a branch office in Kuala Lumpur, Malaysia and become the first and still only bank in Indonesia to expand its business in Malaysia. To date, the Bank has operated 325 offices to serve its customers including 1 (one) branch office in Malaysia. The Bank operation is also supported by a wide service network consisting of 710 unit of Muamalat ATMs, 120,000 ATM Bersama and ATM Prima Networks, and a network of more than 11,000 ATMs in Malaysia through Malaysia Electronic Payment (MEPS).

OpenWay Launches Multi-Currency Pricing Solution for Global Acquirers

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OpenWay, a recognised leader in software for bankcard acquiring and issuing, digital banking, omni-channel payments and e-commerce gateways, has launched a multi-currency pricing software solution to help acquirers attract and service international e-commerce merchants.

Globalisation dictates its own pricing rules for businesses. Customers want to purchase globally, and merchants are eager to price locally while avoiding multi-currency reconciliation and multiple overseas acquiring relationships. For an e-commerce gateway provider (acquirer or PSP), offering merchants services that include currency conversion could lead to significant additional revenues. Merchants and PSPs could also benefit through profit-sharing agreements with their acquirers on FX conversion rates etc.

WAY4 Multi-Currency Pricing is an integrated software solution for acquirers which enables their merchants to price goods and services in a variety of foreign currencies while continuing to receive payments in their home currency. It helps to increase merchant sales, reduce cart abandonment and avoid back-office payment administration headaches.

The WAY4 solution allows acquirers to set up unlimited pricing and settlement currency pairings, manage mark-ups for different FX rates, settle with merchants and PSPs in their chosen currencies, and generate detailed merchant reports.

Merchants with high international sales, such as airlines, global e-commerce retailers, marketplaces and those in the hospitality, gambling and online gaming sectors, are attractive prospects for acquirers. However to service these merchants, acquirers need to be able to offer multi-currency capabilities as well as 24/7 availability, card-based and alternative payment methods, and advanced tools for online fraud prevention.

WAY4 Multi-Currency Pricing is already deployed by two leading European acquirers. Together with WAY4 DCC this solution enables an acquirer to gain incremental revenue from merchant transactions while providing a user-friendly service to cardholders worldwide. These solutions are part of the WAY4 Acquiring platform developed by OpenWay. With WAY4, acquires can create comprehensive merchant hierarchies, flexible rules for authorisation and settlement in the preferred currencies, real-time risk monitoring, loyalty, dispute management, and high availability. WAY4 is built to meet the requirements of international businesses, including support of multiple currencies, time zones and languages.

Sberbank of Russia Processes 140,000,000 Cards Online on the WAY4 Digital Payment Platform

Sberbank of Russia, the largest retail bank in Central and Eastern Europe, is using the WAY4 processing platform to increase its issuing volumes by 200% every five years.

As of 2014, Sberbank was the largest bank in Russia and Eastern Europe, and the third largest in Europe, ranked 33rd in the world and first in central and Eastern Europe in The Banker's Top 1000 World Banks ranking.

In 2009 the bank issued more than 30 million cards. That is double the number of cards issued five years ago when the bank migrated from a legacy processing system to WAY4.

Today, Sberbank has three processing centres that serve 120,000,000 debit and credit cards, over 200,000,000 online accounts, and 20,000 branches across 11 time zones. WAY4 takes care of accounting and product management; EMV smart card issuing; acquiring and personalisation; transaction routing and card authorisation; and multi-level real-time risk management. It handles inter-office and inter-bank payment and clearing operations as well as automated dispute resolution. Time-to-market for the bank’s comprehensive card products and services has significantly decreased.

The bank offers digital banking services, debit and credit cards - EMV and virtual, MasterCard, Visa and local cards. Working with Russia’s largest airline, the bank has introduces the “Visa Aeroflot” card, which allows cardholders to accrue and redeem air miles. In addition to loyalty programmes, the bank has also launched several card-based charity and social projects.

Recently, Savings Bank of Russia became the first bank in the country to connect to Apple Pay. The project was implemented on the basis of the WAY4 Digital Wallet software solution by OpenWay.

OpenWay Recognised as Global Market Leader in Card Management Software Solutions

OpenWay, a global provider of WAY4 software solutions for bankcard issuing and acquiring, transaction switching and omni-channel payments, has been recognized as ‘Market Leader’ by Ovum, an independent research firm, in its recent report “Ovum Decision Matrix: Selecting a Card Management System Platform, 2015–2016”.

Ovum shortlisted 13 well-known CMS solutions from different international vendors, and classified them in three categories: Market Followers, Market Challengers and Market Leaders. OpenWay was classified as Market Leader and, moreover, achieved the highest scores for the majority of assessment criteria. 

“With its strong focus on open architecture and flexible modular design, OpenWay Group has grown rapidly in its 20 years of operation to become a major player in the card management systems space. With an impressive client list, and a proven track record of large-scale deployments, the WAY4 platform has proven itself capable of meeting the needs of most payment providers for issuing, acquiring, and commodity processing services,” the Ovum analysts conclude in the report.

The research further rates the WAY4 platform particularly strongly against competitive systems. OpenWay emerges with the highest level of overall market impact and technology scores. The market impact is mainly attributed to the breadth and scale of OpenWay's high-profile clients while the technology score is being ascribed to the platform architecture, broad core functionality and its multi-regional support capability. 

OpenWay’s recognition by Ovum follows the notable recognition of the company by Gartner in 2009 and 2010. In Gartner’s “MarketScope for Multiregional Card Management Software” OpenWay received the highest ‘strong positive rating’.

WAY4 CMS is a fault-tolerant open-platform software solution. Because of smart flexibility, customers can configure their own products and services based on WAY4’s business rules that cover customer experience, accounting, fraud prevention rules, personalisation, currencies, and other parameters. There are no technical limits in WAY4 in terms of the number of cards, accounts, terminals, cardholders and merchants, currencies, FX rates and languages. It is the only payment processing platform where the front and back office are integrated online. It gives OpenWay’s customers migrating to a digital banking architecture an opportunity to launch comprehensive online products and services, omni-channel, transaction switching, and payment hubs.

Maria Vinogradova, Marketing Director, OpenWay, noted: “We are proud that WAY4 software solutions gain persistent market recognition. We believe that the secret lies in the efforts of our experienced and committed team and in our clients that motivate us all the time to go the extra mile.” 

Ms Vinogradova explains that the market is changing, with classical banking being replaced by digital payments delivered at lower cost, better customer experience and value-added services based on customer lifestyle. “Many of new services, such as NFC (HCE), digital wallet and m-commerce, have been implemented in WAY4 and used by our clients while others are included in the WAY4 roadmap. Our goal is to support our clients to make them the first to benefit from the latest innovations,” she says.

To learn more please download the full report here.

Bank and Vendor: Dependency or Partnership?

OpenWay and AK BARS Bank, one of the top 20 banks in Russia and general partner of the 2013 Universiade in Kazan, Russia have recently implemented a number of innovative projects together. The results have been amazing: in a short time, the bank has attained a new level of payment service based on contactless technologies and new delivery channels. The director of “AK BARS” Bank’s processing centre, Artur Khabibrakhmanov, shares the secrets of a successful partnership between bank and vendor.

«AK BARS» Bank is the largest bank in the Republic of Tatarstan, one of the most developed regions of Russia, and it was the leading bank services’ provider during the Universiade 2013 that recently took place in Tatarstan. What innovative products were prepared and how will they fare in the future?

The bank had a complex task to create a payment infrastructure for the Universiade’s participants and guests, and the bank’s team began work on this long before the event itself. In addition to ATMs, payment terminals, transaction kiosks and standard card types, a number of innovative issuing and acquiring products were developed. For example, we developed a number of issuing products based on multiservice cards including both contact and contactless bank products, transportation offers and a loyalty programme, as well as an identification application that served as an entry pass to Universiade sites and a ticket to competitions, all on one physical medium. 

I would say the most interesting product created for the Universiade is a contactless “wallet”, the first to be implemented in Russia. Physically it consists of a Watch2Pay wristwatch and two renewable prepaid MasterCard cards with a limit of up to 15,000 rubles. The first card, with a magnetic stripe, is used to replenish the account, and the second, a chip card, is for the watch; both are linked to the same account. Contactless payment is made with MasterCard PayPass technology at merchants, restaurants and cafes, filling stations and terminals with payment services. We set up several thousand such locations in Kazan and there are several million worldwide. 

The second product is NFC sets that we issue jointly with mobile operators. The set includes a telephone supporting NFC technology and a SIM card linked to a bank card. The linking is done in WAY4 processing system used by “AK BARS”. Payment is made using a mobile phone.

Of course, we also offered guests non-renewable prepaid cards that can be given as gifts. Among these, I’d like to single out the “Guest of Kazan” card. This card for 1 or 2 people could be used to obtain discounts at museums; they also contained a transportation application that guests of our city could use to pay for public transportation. 

Meal cards for volunteers are also noteworthy: 20,000 Universiade volunteers could use them for lunch at “McDonald’s”. This international chain has specific and strict requirements and its own acquirer. Nevertheless, we were able to provide a payment service using the WAY4 platform issuing programme, ensuring compliance with requirements for service time, points of service and meal costs. 

The entire payment infrastructure was built based on the widespread use of contactless technologies. Now, after the Universiade, this infrastructure continues to work for the Bank’s clients and guests of Kazan. Accreditation cards that were part of the accreditation badge at the Universiade can be used as regular bank cards (and retain their multiservice functionality). The majority of almost 200,000 cards issued for the Universiade can be further used by Bank clients, and the same is true for devices installed by the Bank for the Universiade. Our developments will continue to grow (many of them will be put to market in the near future), and of course, we hope to use them in upcoming large events such as the world aquatics championships in 2015 and the FIFA World Cup in 2018.

 AK Bars Bank Watch with NFC technology and a SIM card linked to a bank card - special issue for the Universiade in Kazan

AK Bars Bank Watch with NFC technology and a SIM card linked to a bank card - special issue for the Universiade in Kazan

You mentioned WAY4. How long has the Bank been using WAY4? How you build a relationship with the vendor? 

I came to the Bank in 2004, and at that time a processing configuration was implemented in which the OpenWay solution was one of the elements (authorisation and back office), and a different company supplied the front office solution. At that time such a configuration was warranted by limitations on computing capacity and communication channels, which made it possible to separate processes of device management and settlements. But as client demand developed and grew, it became clear that tighter integration between front and back office processing was necessary. Clients were requiring more complex bank products, to obtain account statements and make various payments. This all leads to breakdowns in the business logic between the systems, making it difficult for the bank to work efficiently in creating new products and services. It was decided to move to a single system that would unite everything - both acquiring and issuing - in one core. OpenWay’s WAY4 solution was chosen as this system.

The OpenWay solution supports a large number of transaction types: both those that are made directly through payment systems and those that are not regulated by payment systems, and which are the majority in the Bank’s business. Moreover, OpenWay is tried and true on the Russian market and we often use the experience of other banks when implementing – this guarantees reliability and quality client service. Also, WAY4 is scalable, which is very important to us, as a fast-developing bank. 

How would you assess the technological partnership between the Bank and the vendor? What does its success depend on?

In Russian banks, technology to implement new functionality and offer new products is developing rapidly in order to retain existing clients and attract new ones. This means that OpenWay, like any other successful vendor, is often a trailblazer in innovation and this involves a high workload. In implementing new functionality for the demands of business, OpenWay does not always have the necessary experience, but we also don’t always have this experience in something new either. However, the bank's practice of implementing innovations jointly with the solution vendor in past years has shown that together we can carry out even the most complex projects. Of course, this creates a dependency of the Bank on the vendor. And this dependency is present in our Bank also. 

At the same time, we have quite broad capabilities provided by the solution vendor. For example, we independently created all issuing products for the Universiade, using OpenWay tools. We practically didn’t contact the developer, basic consultation was enough. For example, the WAY4 Product Inspector allowed us to build credit product portfolios on our own.

I think each party should do what it does best: the vendor should create good software, the bank should offer clients services based on these products. This kind of relationship promotes our common business.

How do you see the development of processing as a whole? Until recently, the concept of an Internet or mobile banking didn’t even exist. Do you think “classic” banking on its way out?

It’s true, several years ago, there was only one standard for cards. But now the boundaries of card use are really fuzzy: there are virtual cards, NFC, and watches, for example. It’s easy for a card to simultaneously be a wallet and an ID card and a transportation pass. That said, the core and the platform on which relations between the bank and client are built remain the same. And consequently, the solutions offered by the vendor will continue to work. Processing is being modernized, new products are being created. But, of course, remote channels are coming into their own. People are essentially lazy and if they can stay on the couch, they will. I think that the next popular tendency in remote banking service will be automatic payments. They make it possible to manage but not to trace basic expenses – housing, phone, petrol… This will all be paid automatically and all cardholders have to do is create templates, or have someone do it for them. As far as I can see, the client is interested in remote banking services becoming a system for financial management.

On the topic of processing modernization, you probably mean technological migrations. Have you undergone migrations with your vendor?

The very first and longest migration was to EMV processing. At that time, in addition to modernization of the core and software, we had to replace and modernize the terminal network and this process included certifying the solutions of vendors supplying devices and software for these solutions. 

Next, in preparation for the Universiade, we migrated the ATM controller to WAY4 since we needed to support additional functionality for a significant number of ATMs in Kazan. And now we are completing the migration of the remaining devices and fully going over to the WAY4 single platform. Moreover, together with OpenWay, we are significantly expanding our Web banking capabilities: for all intents and purposes, we’ve built a new one, only taking best practices connected with client preferences from the old one. 

What is the “old” Web banking? 

We used the Web banking of one of the most widespread vendors in Russia and were totally satisfied with it, but we began to find we were missing existing tools that are widely available in OpenWay. We are talking about various additional balances, statement types, work with limiters, templates and much more requiring significant integration expenses if a third-party solution is used, but are easily resolved when using OpenWay Internet banking. On the basis of Web banking, we also plan to develop mobile banking: we will definitely release a client application. 

We’ll be honest: all vendors are interested in the further penetration of their products in the bank. What may be the next step?

I’ve already noted automatic payments, for which there may already be mass demand in the near future. It’s possible that the resources of large integrators may start to be used, which would allow information about client payment requirements to be united in one place. For example, today many payments are processed separately: some companies process utility payments, others, communications services, and possibly, the bank will need an integration pool for a specific client. This will assist both parties: the bank in collecting all the client’s payments and balances and the client, in managing his financial history. Gradually the need to physically come to the bank will disappear, but the financial institution will remain in the life of the client. 

One way or another, the majority of consumer activity is connected with money – planning vacation, purchases, payments and more. And in the battle for the client, the bank that can perceptibly save not only the client's money but time, will win. 

In conclusion:

When I’m asked what the card business should expect in the future, the communication service business comes to mind. The first time I came to a telephone exchange, there were all sorts of wires going from the exchange in different directions, telecommunications racks taking up entire buildings. Not much time has passed, but there is no longer any need for these huge buildings: the exchanges themselves use relatively small facilities and communications providers offer clients more than just voice communication services. 

The card business is similar – it’s not only a service for withdrawing cash at ATMs but also a myriad of other financial services based on remote channels. And, possibly, the big buildings occupied by banks today won’t be needed any more, and a client going into a bank office of the future won’t see any people there: remote services offered by the banks will be sufficient.

Speeding up Profit with Contactless

Bank Audi: Speed Wins

The Bank Audi group believes is that when it comes to banking, it's no longer size that matters, but speed. Therefore, Bank Audi maintains a strategy of innovation and strategic partnership with innovative companies:

  • The group is a key partner of international payment systems in the region and is on the board of directors of MasterCard Worldwide in the MENA region.
  • The company uses an innovative processing centre in Lebanon that is built on OpenWay's WAY4 system and services all the countries where the group has a presence.
  • The group is a market pioneer and leader thanks to its innovative approach to creating product portfolios. While the majority of companies are striving to optimise products by reducing assortment, Bank Audi manages 45 products, all of which are highly profitable due to accurate client segmentation and tuning products to the requirements of each segment.
  • The group's clients are the first to get access to in-demand developments in business and technology such as mobile banking, e-commerce and now contactless technologies.

Why Contactless?

Bank Audi sees contactless technologies as the next step in development after the card chip. Over the past few years, competition on the market for bank services has increased, especially in the payment card segment. One possible competitive advantage is to provide clients with a new user experience that will retain existing and attract new clients.

Another important characteristic of contactless is that it allows new acquiring segments to be opened, attracting merchants that didn't accept cards before (such as fast food restaurants) and increasing card turnover due to cashless purchases at such merchants.

How Is It Implemented?

The most difficult and expensive element of any project related to contactless cards is to build the acceptance network. Therefore Bank Audi made an initial analysis to identify key merchant categories for which the acceptance of cards with a contactless interface could be critical both in terms of client service and competitive advantage:

  • Supermarkets
  • Fast food restaurants
  • Drugstores
  • Retail networks
  • Filling stations
  • Cinemas
  • Bookstores
  • Parking

1. Working with merchants

At the first stage of the project, the group began to work with 3 thousand merchants from the selected categories. These merchants already include such well-known brands as McDonald's, Nike, Vero Moda, and ALDO. One of the most important elements of this success was the well thought out training of both bank and partner merchant employees. Not only did it include teaching customer service techniques according to the new technology, it more importantly explained which new benefits it provided for the merchant:

  • Speed and convenience: since transactions take place faster, client satisfaction increases and lines get shorter.
  • Branding: merchants emphasise their image as high-tech companies, increasing client loyalty.
  • Costs are cut both for merchants and clients since the majority of transactions are made without cash.
  • Increase in revenue: now clients can spend more using contactless credit cards.

2. Branding

Together with its partners, Bank Audi made their devices for accepting contactless cards stand out, calling attention to the opportunity for contactless payments. Contactless terminals were supplied with special branded blocks and posters with "Tap2pay" and the MasterCard PayPass and bank logos were placed nearby:

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3. Issuing co-branded credit cards

Perhaps the most interesting aspect of this project is a co-branded credit card with the ABC shopping centre. The largest and most popular shopping centre in Lebanon, ABC represents the majority of merchant categories selected for issuing products with contactless technology: parking, fast food chains, cafes, cinemas, brand retail stores, and bookstores.

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  • Welcome gift: the Platinum card provides a welcome voucher with 15% discount welcome voucher, the classic card – 300 welcome points. Both cards give 2 free entries to the shopping centre's game zone.
  • Fashion Experience: for each $300 spent on the cards, the cardholder can attend a fashion show.
  • 1,000 welcome points as a gift for the first three months of using the card.
  • Privileges from Galeries Lafayette Paris Haussman: 10% discount on ABC credit card purchases in addition to a 12% tax return, and an invitation to a weekly fashion show.
  • Personal marketing: personal offers, exclusive promotions and events.
  • Birthday: points and gifts.
  • Free delivery of purchases: for purchases over $550 at ABC.
  • Free parking.

4. Innovation needs innovation

Competition in quality service and efficiency requires Bank Audi to quickly adapt innovations. That's why the group chose OpenWay, the WAY4 system vendor, as their strategic partner. OpenWay plays a leading role in the new technological and business environment requiring a flexible, reliable and scalable payment ecosystem.

To meet the high demands of its clients and to profit from new business opportunities and IT, Bank Audi uses the WAY4 processing platform. This is a functional and reliable system that includes an operational component, and tools for authorisation and accounting, making it possible to flexibly and quickly respond to the bank's needs. 

WAY4 serves Bank Audi's technical requirements in issuing and processing payment card-based products and makes it possible to implement the latest innovations such as mobile payments, electronic wallets and contactless technology. It supports the bank's strategy on the technological level, allowing IT to work for business and quickly put new business ideas into action. 

Result

Bank Audi was able to provide its clients with comfortable service on a new level. The project was implemented in October 2012 and already in January 2013, 4 months after implementation, the number of credit cards had increased 10 times from the first month, up to 5000 and this number is continuing to grow. 50% of all purchases made with Bank Audi cards at the ABC shopping centre are contactless card purchases.

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What's next?

Based on this positive experience, Bank Audi plans to develop the contactless card acceptance network; expanding the line of debit and credit products offering a fast way to pay. The Bank is implementing NFC, which means in the near future, clients will be able to take advantage of contactless payments using their mobile phones.

Oschadbank and OpenWay Certify payWave and PayPass Contactless Acquiring in Record Time

One of Ukraine's largest banks, the State Savings Bank of Ukraine (Oschadbank), with the active assistance of OpenWay, has successfully completed certification of acquiring for new contactless payWave and PayPass functions.

OpenWay, a leading international developer of software solutions for issuing and processing payment cards and electronic money, and Oschadbank, one of Ukraine's largest banks, have successfully completed a project to certify Visa payWave and MasterCard PayPass contactless card acquiring. The project was completed in record time; the Visa payWave case was accomplished in less than one calendar month in the spring of 2012. Following this, the MasterCard international payment system also confirmed Oschadbank's full compliance with the requirements of PayPass technology.

During the entire certification period, OpenWay provided Oschadbank technical and consulting support. 

"We are gradually moving away from the image of an old-fashioned bank. We are now focusing on offering our clients high-tech services. Oschadbank is definitely interested in the innovative development of cashless payments in Ukraine and is constantly working in this direction. Thanks to the certification of new contactless payWave and PayPass acquiring functions, our clients get access to a European level of services distinguished by high quality, convenience and security," comments Anton Tyutyun, Oschadbank's deputy chairman of the board.
"We began to work with Oschadbank quite recently, but in each new project the bank has demonstrated creativity, flexibility and agility rare for a large financial organisation. We are very optimistic about the further development of Oschadbank's card business," says Mikhail Alexeev, the director of business development in Eastern Europe and Central Asia, OpenWay.

At the present time, the bank is actively expanding the contactless payment acceptance network across the entire Ukraine. 

According to Anton Tyutyun, "2012 was extremely important for us in terms of developing our card business. In March, the bank opened its own processing centre based on WAY4, which significantly increases our opportunities to offer new quality products and services. From 2012-2015, Oschadbank intends to more than double its payment card issuing volume – from 1.8 million to 5 million, as well as to significantly expand the POS terminal network."

In 2012, Oschadbank plans to begin a project for issuing contactless cards on the basis of WAY4.

Oschadbank

The Public Joint-Stock Company “State Savings Bank of Ukraine” is one of the largest financial institutions in Ukraine, having the most extensive branch network in the country. Oschadbank is the only Ukrainian bank that enjoys the unique state guarantee on all retail deposits. JSC “Oschadbank” is the most reliable bank according to the “Korrespondent” magazine and the investment company “Dragon Capital” and also holds its leadership in deposit reliability rating according to the Internet-magazine “Real economy”.

Ukreximbank's processing on WAY4: 10 years of progress

How is this milestone year going in terms of processing? Have you had time to make a stop, to look back and review the results?

To strike the pause button, to take a look into the past is an unaffordable – though alluring – luxury. It is important for the bank to keep pace with the dynamic beat set by the card and payment market. This is why we celebrated the anniversary, so to speak, on the go. This year, the highest priority for our processing is Visa and MasterCard certification for the launch of contactless payments payWave and PayPass. August, the month of the anniversary, found us on the home straight – Ukreximbank’s contactless POS terminals start operating in retail networks in the autumn, and we are ready to issue the first cards with the contactless interface.

As to preliminary results, 2012 has also been a good year for retail acquiring: the turnover for the period from January to August has exceeded the last year’s figures by 18 percent and has reached 1.98 billion hryvnas. In addition, partnership in the field of e-commerce is rapidly developing. The number of online shops that accept card payments using Ukreximbank’s 3-D Secure antifraud service has doubled since last year.

What processing numbers, technologies, objectives did your bank start with and what are the achievements of the last ten years?

To start with, Ukrexim’s first payment cards were issued in 1996. We first used software from Tieto, but eventually it no longer met our goals and plans for the future. At the end of 2001 a decision to migrate to another processing system was made. We carried out a research, assessing solutions from various vendors by a multitude of parameters. As a result, we chose WAY4, a software solution from OpenWay, which we found the most promising, flexible, and functionally developed.

Implementation and card portfolio migration to WAY4 took four months, from April to July, and we consider 1 August 2002 the beginning of the new life of processing in Ukreximbank. By that time, we had issued about 80,000 cards, all magnetic stripe ones. In the beginning of 2002, acquiring, i.e. about 100 ATMs and approximately 300 POS terminals, was migrated as well.

Over the last ten years, we developed as rapidly as the card, payment and money transfer industry itself. On the new infrastructure, our bank has successfully implemented various technologies to meet ever- increasing demands of the market. Ukreximbank acquires about 1.2 million international Visa and MasterCard cards at the moment. We aim at diversity: clients can choose between debit and credit cards, virtual cards with an unlimited top-up amount, as well as corporate cards. We were one of the first banks to switch to EMV card issuing and acquiring, and today virtually all cards, even salary cards (upon the company’s wishes), can have an EMV chip. This year, we are starting to issue contactless payment tools – Visa’s payWave and MasterCard’s PayPass – as well.

Our ATM network now consists of 738 devices. Using the Google Maps service, cardholders can quickly find the nearest ATM and use its diverse services. In addition to the classical cash withdrawal, our clients also favour P2P transfers within international payment schemes and cash-in with instant card top-up in hryvnas, dollars, or euro.

The number of our POS terminals, including wireless and contactless, is now about 10,000 devices. Ukreximbank works as an acquirer with the largest retailers, best hotels in the Ukraine, filling station networks, and many other merchants. Prior to the Euro 2012 football championship, the bank carried out an interesting project: installing POS terminals in the cabs of a large Kiev taxi service. Also, the bank acquires international payment cards for one of the largest Ukrainian airline carriers: for Ukreximbank, the sky is the limit, literally.

In 2010, American Express chose us as the only acquirer of AmEx cards in the Ukraine. This shows both that Ukreximbank has a high quality of client service and that our processing meets the requirements put forward by American Express. Indeed, accepting AmEx cards is a must for hotels, de luxe restaurants and premium-segment shops, where everything should work smoothly and without fail.

Another achievement of ours is close cooperation with Ukrainian banks, whom Ukreximbank helps work in international payment schemes. Many of them fully rely on us as far as issuing and acquiring are concerned. Banks that have their own card solutions use our resources for routing and authorization in payment schemes. We have 16 partners of this type at the moment.

What does Ukreximbank’s management take into consideration when introducing new products and services to the market? What are your selection criteria for perspective card and payment technologies?

As a rule, the processing development vector is influenced by several factors at once. Being client- oriented is of utmost importance for us. We are a state bank and work with various segments of the population as well as corporations, and try to offer each segment the most usable and relevant payment tool.

For example, Ukreximbank issues Maestro TeenCard cards for the younger people who gradually get acquainted with bank services and get accustomed to cashless payments. We are actually raising our future loyal clients. At the same time, this product allows parents to control how teenagers spend their money: to get a text notification of every transaction or set certain limitations. For these cards’ holders, we organised a campaign called “Summer vacation with TeenCard”, where each participant got a discount card of a sports store network and a chance to win prizes from MasterCard.

For another user segment – which generates quite a few retail transactions – we issue the Visa Lady's Club card. In addition to an attractive design, this card has another nice feature: it allows its holders to get discounts in various boutiques, beauty shops and retail networks. Ukreximbank also prepared for the main sports event of the year – Euro 2012. Specially for football fans, at the beginning of the year the bank issued MasterCard cards with “football” design, including the first in the Ukraine payment card with 3D effect.

As a state bank, we naturally pay a lot of attention to socially important projects. This is why we developed a charity programme “Razom za zhittya” (Together for life) based on Visa Classic cards. These cards’ design was developed by a well-known artist Yevgeniya Gapchinskaya. Holders of these cards make a contribution to the cause of kids with cancer – 75 kopeks from each transaction are transferred to the account of the children’s ward of the National Institute for Cancer. Using Ukreximbank’s Web banking system Enter EXIMTM, clients can also set up regular payments from their account or make charitable donations directly to accounts of medical institutions. Since the launch of the programme, over 6,000 cardholders have joined in, and over 4 million hryvnas have been collected and used to buy special equipment, surgical instruments, and medicine.

Ukreximbank’s products and services are easily adapted to specific requests of the corporate segment. Our portfolio is not limited to salary and T&E plastic cards. For instance, freight companies supply their drivers with special Ukreximbank’s cards for optimised fuel top-up and car service payments. Our processing system also allows each company to receive card funds flow statements in its own custom format, with individual frequency and level of detail.

It is sometimes necessary to select one of several technologies that can be used to implement a new goal. In this case, our team analyses similar projects in other countries and strives to find the reasons and consistent patterns behind other banks’ successes and failures. Our partners with international expertise also help us make such decisions – they share the experience of their clients from around the world and recommend how it can be adapted to Ukreximbank’s objectives.

Yet another drive for card business is, of course, requirements of international payment schemes. With the support of OpenWay, the bank has successfully passed a number of certifications: in 2004, to issue and acquire EMV cards, in 2006, for Internet acquiring under 3-D Secure protocol, in 2009, to comply with PCI DSS security standards.

It must be mentioned that Ukreximbank is one of the few banks in the Ukraine with PCI DSS compliant fully-fledged in-house processing. Now, we annually undergo PCI DSS audit to confirm that our bank operates in strict correspondence with international best practices in the field of security.

What processing projects are scheduled for the remaining part of 2012 and for the next couple of years?

I think that the contactless technology project will remain our highest priority. We expect to have installed up to 500 POS contactless terminals by the end of 2012 and to have issued about 20,000 Visa payWave and MasterCard PayPass cards by the middle of 2013.

We also follow closely the development of the NFC payments and transfers on smartphones. These technologies will probably act as a fillip for further development of our mobile and Web banking.

Ukreximbank’s acquiring of American Express cards has already reached a point where the scales and turnover of this partnership require bringing it to a whole new level. Our plans for the nearest future include implementation of cash withdrawal service in ATMs using AmEx cards and acquiring of AmEx cards on the Web.

It may well be so that there will be other, unscheduled, projects, brought forward by the requirements of the market or of international payment schemes. Not to be caught unaware is exactly the reason why a while ago our bank migrated to a multifunctional and flexible processing system. And now our practices are being adopted by our colleagues. For instance, not long ago we were visited by Raiffeisenbank’s international team. One of the largest banking groups in Europe had chosen WAY4, and its representatives took interest in our in-house processing configurations and successful card projects. This is one of many signs that ten years ago Ukreximbank made a strategically right decision.

Equens hits 11 million transactions per day on WAY4

Equens SE, the pan-European payment processor, is now using its WAY4 payment processing platform to process 11.8 million POS and ATM clearing transactions per day, a speed milestone as compared with the 2 million transactions per day the company was achieving in 2010. Next peak expected milestone is 25 millions transactions per day.

Transaction volumes have grown thanks to Equens acquiring some new big merchants, now serving around half a million merchants across Europe. Another driver was SEPA: The Netherlands has been migrated from a local debit scheme PIN to international Maestro product. Migration to WAY4 in 2008 was farseeing – It helped Equens to improve its infrastructure and provide the future growth. Now Equens does not have any limits to multiply its transaction volumes in several times a year.

The ATM and POS clearing transactions being processed on the WAY4 platform include accounting transactions, fee calculations, transaction validations and currency conversions.

Wim Pardon, Director of OpenWay added: “The flexibility and reliability of WAY4 solutions and the high quality of our system support services have been already acknowledged by many financial institutions, payments processors and telecommunication companies operating on different continents. Our cooperation with technology leaders assures our place at the forefront of the latest technologies. 
“When Equens chose WAY4 the company was looking for a powerful and flexible processing platform with the capability to adapt products to new markets easily and to introduce international brands, while coping with rapid growth in processing volume. We’re delighted that Equens’ belief in our product has enabled them to achieve such business success in this area.”

Equens SE

Equens is the first truly pan-European, full-service payment processor. As one of the largest and most innovative payment processors in Europe, Equens is leading the market for future-proof payments and card processing solutions. Thanks to an extensive and competitive service portfolio and a flexible, customer-orientated approach, the company seamlessly meets the requirements of the European payments market. With an annual volume of 7.9 billion payments and 2.2 billion POS and ATM transactions, Equens has a market share of more than 15% within the euro zone. By continuously pursuing further growth and translating the achieved synergy benefits and economies of scale into advantages for the customer, the company contributes to the efficiency of European payments.

Borgun turns to OpenWay

Borgun, the first issuer and acquirer of credit cards in Iceland whose business today comprises over 200.000 cards and 10,000 merchants, has turned to OpenWay’s WAY4 all-in-one software platform to manage issuing, acquiring, e-commerce and loyalty programmes for its total portfolio.

Haukur Oddson, CEO of Borgun, said, “Card usage in Iceland is among the highest in the world so we needed to have advantage over the competition. Borgun is known for innovative solutions when it comes to servicing merchants and we needed a processing platform that could react and adapt to our changing requirements. Of vital importance to us was that full functionality scope including e-commerce, acquiring and issuing, could be supported while we centralised processing for all our businesses. We chose WAY4 all-in-one solution because it ticked all the boxes including providing an interface with our existing platforms and Payments associations, could run loyalty programmes, integrate with our issuing client banks and be able to acquire for all Payment schemes.”
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Wim Pardon, Managing Director of OpenWay EMEA added, "We are very pleased to be working with Borgun, an innovative company operating in one of the most developed and thus challenging card markets. Our WAY4 solution is especially suitable for projects where the client needs a single transaction processing platform with proven issuing, acquiring and switching capabilities together with rich e-commerce and loyalty functionality. Borgun was one of the pioneers in the market and we believe WAY4 will help Borgun to continue to lead the market supported by increased flexibility, faster speed to market, and improved efficiency".

Borgun

Established in 1980, as the first issuer and acquirer of credit cards in Iceland, Borgun is a leader in payment solutions in Iceland and is committed to innovation and excellence. Borgun provides acquiring services to merchants and issuing processing services to a diverse range of issuers of credit and debit cards on the Icelandic market.

The company offers solutions for merchants accepting MasterCard, Maestro, VISA, VISA Electron, Union Pay, JCB, Diners Club, Discover, and American Express credit cards; and card-not-present, including e-commerce acquiring services for MasterCard and VISA.

Leading Ukranian bank announced WAY4-based strategy

The WAY4 card management and transaction switching software from OpenWay makes it possible for Oschadbank to discontinue outsourcing in favor of its own processing. This significantly increases the competitive advantage of the bank's retail business and decreases its expenditure.

The State Savings Bank of Ukraine (Oschadbank), one of Ukraine's largest retail banks has launched its own processing based on the WAY4 software from OpenWay, the leading multiregional card management, and channel banking software vendor. Until the present time, the bank had been using a third-party processor through outsourcing. Moreover, it took four different IT systems to process every transaction. Back office operations were accompanied by several additional software products.

According to their development strategy for 2012-2015, Oschadbank plans to migrate to modern banking technology for long-term stable development. In particular, the bank intends to more than double its card issuing volume from 1,8 million to 5 million cards and expand its POS terminal network.

"To be successful in retail banking in Ukraine, it's not enough to use standardized or "rented" products and services. You have to be able to quickly create new in-demand products and services and bring them to market, actively increase issuing and acquiring volume. WAY4's new-generation technological platform not only addresses our current tasks but can be the basis for the development of new business directions for our bank that has been trusted by private clients and legal entities for 20 years", comments Anton Tyutyun, Oschadbank's deputy chairman of the board.
Mikhail Alexeyev, the director of business development, OpenWay Eastern Europe, and Central Asia notes: "At the end of 2011, we completed the main phase of implementing WAY4 at Oschadbank, including certification in the Visa and MasterCard international payment schemes. We are now configuring a whole line of new retail products and services, including contactless payments and we are already planning new projects".

In the near future, OpenWay will carry out step-by-step migration to WAY4 from Oschadbank's scattered IT systems and will provide remote access to a single centralized system in the bank's branch network. "The role of technological facilities is highly important to the dynamic development of card business and acquiring. The fact that Oschadbank will now work on a single processing platform makes it possible to significantly increase its efficiency. Oschadbank's new processing center will make it possible to implement modern technologies; in the future, the bank plans to introduce banking self-service channels and loyalty programs based on the WAY4 platform" comments Evgeni Drachko-Yermolenko, Oschadbank's deputy chairman of the board.

Oschadbank

The Public Joint-Stock Company “State Savings Bank of Ukraine” is one of the largest financial institutions in Ukraine, having the most extensive branch network in the country. Oschadbank is the only Ukrainian bank that enjoys the unique state guarantee on all retail deposits. JSC “Oschadbank” is the most reliable bank according to the “Korrespondent” magazine and the investment company “Dragon Capital” and also holds its leadership in deposit reliability rating according to the Internet-magazine “Real economy”.

TREVICA and OpenWay Urge Competition on Polish Cards Market

TREVICA, Polish payment processing company, whose one of main shareholders is MasterCard Europe Sprl, has successfully launched the multi-institution card issuing and acquiring platform WAY4 from OpenWay to get a jump-start on the highly-competitive Polish cards market.

With WAY4 TREVICA plans to become a strong rival to well-known card processing players in providing both traditional payment processing services and advanced value-added services, such as 3-D Secure Internet payment processing and real-time risk management.

"We have selected WAY4 because we were looking for technologically modern and functionally mature, stable system that can help us minimize time-to-market with each new bank we connect and sustain long-term growth", - said Maciej Stepien, TREVICA’s COO. "We enjoyed WAY4’s flexible business rules and are able to set up new products and features quickly without programming. Thanks to its flexibility we implement new products and banks extremely fast and reliable", he added. 
"I am sure that TREVICA and its clients are going to boost consumers e-payment experience in the nearest future", - commented Wim Pardon, Managing Director of OpenWay EMEA. "As many start-up companies, TREVICA can leverage the most up-to-date payment infrastructure to introduce innovative tailored solutions. It gives a real competitive advantage over those using cumbersome legacy platforms".

TREVICA

TREVICA S.A. was founded in 2008 as a new payment processing company on the Polish market. The company offers its services to banks and financial institutions who wish to issue cards or acquire transactions in ATM and POS networks without building their own infrastructure. TREVICA offers full life cycle of card issuing processing including account and card record maintenance, authorization and settlement, credit card account management, transaction switching, fraud and dispute management, and more. These services are supported for all types of card technologies like magnetic stripe card, EMV, contactless, virtual, paper voucher, etc. Acquiring transaction processing is a set of services offered to a broad range of institutions involved in electronic payments like: ATM/POS/eCommerce acquirers, ATM/POS/eCommerce network operators, GSM top-up operators, bill payment operators, mobile payments operators who plan to extend the scope of services available at their merchants' location

 

Innovative Projects of AzeriCard – a Red Carpet Treatment

Anar, please tell us how you came up with the idea of the Cash by Code project, whether it was difficult to implement, and what the essence of this scheme of instant cash transfers is.

At the moment, development of self-service channels has the highest priority for AzeriCard. We actively search for promising ideas, follow the news of the world’s payment industry, take interest in our partners’ experience. I learnt about instant cash transfers using the WAY4 Cash by Code technology at the conference held by OpenWay, the vendor supplying our processing system WAY4. The success of this technology in other regions and the usable and secure transfer scheme inspired AzeriCard to launch our own project.

Thanks to the well-coordinated work of all parties involved, it only took four months to implement this idea. OpenWay’s specialists expeditiously carried out necessary tests and made sure the service was up and running and failure-proof. Diebold, NCR and Wincor Nixdorf installed the updates necessary to support the new functions on our ATMs.
Now, the Cash by Code service is available in the menu folder of the same name in ATMs of AzeriCard’s partner banks. When making a cash transfer from a card, the user specifies the transfer recipient’s mobile phone number. WAY4 generates a special code, splits it into two halves and sends one half to the specified number in a text message. The other half is printed on the ATM receipt so that the sender himself could give it to the recipient.

The recipient joins the two halves and using the code (but no card) withdraws cash in an ATM. The network of AzeriCard’s partners consists of over a thousand terminals throughout the country. This way, one can initiate a transfer or make a withdrawal virtually anytime anywhere.

In addition to being user-friendly, Cash by Code is a very secure service as well. We limit the expiration period of the code to 24 hours. When making a cash withdrawal, one must specify the exact amount and currency of the transfer. The multiple security levels decrease the risk of fraud to a minimum.

What banks participate in the project, how quickly are Cash by Code transfers gaining popularity among end users? Does AzeriCard plan to further develop this service?

For Cash by Code processing, we use our standard scheme of clearing and settlement of cash withdrawals. This is why it is extremely easy for new participants to join this system. All AzeriCard’s partners use their terminals to serve Cash by Code recipients, and this makes 29 banks and about 1,300 ATMs. Initiating transfers is available to customers of 9 banks: International Bank of Azerbaijan, Bank Standard, Bank Respublika, AtaBank, AGBank, PARABANK, Bank Avrasiya, Bank Silk Way, and NIKOIL. It is obvious by now that the clients have appreciated the new service and are actively using it, and the turnover is constantly growing.

The Cash by Code project has immense potential, and we have already planned its further development. First, there is a perspective of geographical expansion. Transfers can only be made within this country at the moment, but International Bank of Azerbaijan is looking into the legal possibility of providing the service in the ATMs of its Moscow branch. In case of a positive answer, it will be possible to make Cash by Code transfers from Moscow to Azerbaijan and vice versa. It is probable that later on we will include other CIS countries in the service.

Second, the service is going to be available on other self-service channels. The top priority for AzeriCard is integrating Cash by Code transfers into our mobile banking system. Combining the two technologies will turn a mobile phone into a “cardless wallet” of sorts. This may be relevant when you need to withdraw cash but do not have a card on you. A client will be able to make a Cash by Code transfer where he is both the sender and the recipient. In less than five minutes, he will be able to withdraw the necessary amount in the nearest ATM.

Taking into account the ubiquitous ever-growing interest in mobile technologies, the idea of a mobile “cardless wallet” has every chance of gaining popularity. If AzeriCard plans to implement other innovations for advanced mobile phone users, we would love to know more.

This year, our mobile banking is starting, so to speak, a new life. Since September, clients have access to a completely new service. AzeriCard has replaced the “applet” mobile banking with the innovative “midlet” option and special applications for smartphones.

The old system, which used a mobile applet, called in for many a criticism. Over the three years it existed, only 900 users had enrolled. Our partner banks complained that clients were put off by the complicated enrolment procedure: first, visiting the mobile operator to replace a SIM card, then, going to the bank to link the phone to a bankcard. Many were not happy about being dependent on a single mobile operator. As we found out, there also comes a moment when the memory of a SIM card no longer suffices for adequate service. All of the above reasons prompted AzeriCard to turn away from the outdated technology. Instead, we have chosen OpenWay’s WAY4 Mobile Banking solution.
AzeriCard’s new system, based on a java midlet, is devoid of the above drawbacks. Clients simply download a mobile application via the Internet (from AzeriCard’s site, or from the site of their bank, or from a smartphone app store) and install it on their mobile phones. The phone is linked to a card using a code that can be obtained in an ATM. As a result, a usable mobile banking menu appears on the phone. And there are no memory limitations, since all data is stored on AzeriCard’s host.

An essential criterion we used to select a new mobile banking system was the support of smartphones. This is the “gadget of choice” for AzeriCard’s most active and technologically advances users: the business sector and users under 30 years old. We are happy that our partner in the project, OpenWay, keeps up with the requirements of the market. WAY4 Mobile Banking already works on iPhone and BlackBerry, and a solution for Android smartphones will be released by the end of the year.

According to the expectations of AzeriCard and its partner banks, how many users will you be able to attract to the new mobile banking channel? What services are now available on the channel?

On the whole, one can say that our end users are quite interested in mobile services. For example, in 2010, when AzeriCard implemented card balance text notifications, 32,000 clients enrolled for the service over the first six months only, and this number is still growing. The growth of the new mobile banking’s client base will probably be slightly less sweeping, since specific technological skills are required to install an application on a phone. We predict that about 20,000 thousand users will enrol during the first year of its existence.

The new mobile banking supports such popular services as viewing the list of cards and their balances, a list of recent transactions, statements, card transfers, Internet and mobile phone payments... The new technology has allowed our system to connect to service providers in real time mode and check each and every transaction detail before the transaction takes place. At the moment, we accept payments to 18 organisations on the mobile banking channel, and the number of recipients is gradually growing.

I would like to emphasize the instant card blocking feature. It is a great tool against card fraud and, consequently, a strong incentive for clients to enrol for mobile banking. The old “applet” system did not allow us to implement this service, since it operated via the SMS channel, which is not a secure way to deliver messages to the host. The new system uses modern and secure communication channels: GPRS, 3G, EDGE, and WiFi. A blocking confirmation is immediately sent to the phone, and the updated status is specified in the list of cards.
The features I have named are already available to users at the moment. Meanwhile, our company has started the next stage of the project. As I mentioned before, we are going to add Cash by Code transfers on the mobile banking channel and implement the mobile cardless wallet. Also, the “OTP calculator” is going to appear in the mobile banking menu. In their phones, users will be able to generate one-time passwords used to access the Web banking system, confirm the most important financial transactions, and make Internet payments under the 3-D Secure security standard. Those who do not use mobile banking with an OTP calculator will be able to receive one-time passwords in text messages.

Depending on how quickly mobile banking spreads, will the contents of the service in other self-service channels change in any way? What other plans does AzeriCard have for years 2011 and 2012?

Our ultimate goal is “unload” the ATM network so that it is only used for cash withdrawal and cash-in, while other services – statements, payments, transfers – are provided through mobile and Web banking and in kiosks. But since cash payments make up such a large percentage of all transactions in our country, clients still consider an ATM the most common “point of interaction” with their bank. This is where we usually start introducing new services to the market and then mirror them on other channels.

We plan to launch VISA Money Transfer by the end of 2011. At the same time, AzeriCard is negotiating the launch of the same service for MasterCard cards. The cash-in service will be taken to a whole new level: it will be possible to top up not only the card entered in the ATM, but any other card issued by our processing centre as well. AzeriCard is also very interested in the sphere of public transport. Our partners and we are now exploring various options for providing people of Baku with a quick and usable way to pay their subway fare.

To conclude, I’d like to remind that the international contest Eurovision 2012 is taking place in Baku next May. From the viewpoint of payment infrastructure, AzeriCard plans to give our guests from around the world and their bankcards a red carpet treatment.

About Azericard

AzeriCard is the first processing centre in Azerbaijan that has been fully certified by international payment schemes MasterCard, Visa, and American Express. At the moment, AzeriCard processes transactions for 29 banks both in Azerbaijan and abroad. 26 of them are members of international payment schemes. AzeriCard actively implements top-notch high-tech projects, such as fare payment by contactless smart card, phone payments, utility payments, custom fee and tax payments, mobile and Web banking, card-to-card transfers, insurance fee payment via ATM, deposits, various loyalty programmes, multicurrency cards, etc. Today, AzeriCard’s system services about 2,000,000 bank cards, 1,300 ATMs and 6,000 POS terminals.