Raiffeisenbank

OpenWay and Priorbank (Raiffeisenbank Group) Introduce HCE Technology

Now customers of Priorbank, a leading commercial bank in Belarus and a member of Raiffeisen Bank International group, can use their phones as a universal payment tool. The service supports MasterCard cards and will be expanded to Visa cards later this year. This is the first time Host Card Emulation (HCE) technology for issuing cards in a smartphone has been used in Belarus. The solution was developed on the WAY4 platform by OpenWay, a recognised leader in software for bankcard issuing and acquiring, payment processing, remote banking services and financial transaction routing.

To start using the service, Priorbank customers download a special app to their phones and create mobile version of their bankcard in two clicks. The card in the phone can be used for payment in shops, restaurants and anywhere POS terminals supporting contactless payment technology are installed. Each transaction over 200,000 Belarusian rubles (about $10) is confirmed by PIN. Access to cards in the phone is protected by the app's password. The bank plans to implement the mobile issuing service for both debit and credit cards. 

The WAY4 HCE solution allows issuers to independently issue virtual cards to client mobile phones and store encrypted card data on bank servers. The technology ensures a high level of security for storing financial information according to international standards. The service can be used anyone who has a phone with NFC support, running under Android KitKat 4.4 and higher. 

"With the launch of this project, Belarus joins the ranks of progressive markets with the most innovative technology in the financial sphere. The solution we introduced today is one of the newest in the area of contactless mobile payments, used by the world's leading banks. − notes Sergei Shishov, vice president of the board of Priorbank. – The technology (HCE) we chose to implement in this project offers great opportunities. Consumers get a convenient, fast, and reliable payment tool. We are certain this technology is not only significant for us, but for the market as a whole. Priorbank plans to actively work on implementing and promoting contactless payment technology in Belarus, assist in raising the financial literacy of the population and developing cashless payments in the Republic of Belarus".

In many countries, contactless payment is already helping to solve the problem of lines. It speeds up service in shops and fast food restaurants, on public transportation and at public events. The ability to provide mobile services is becoming another way to attract and retain clients. Mobile tokenisation is becoming one of the main ways to protect card data. 
Despite international technology giants such as Apple Pay, Android Pay, Samsung Pay entering the payments market, processing companies and banks are also interested in developing their own mobile applications for tokenisation and contactless payment. This helps them to maintain their brand and direct contact with clients. The WAY4 HCE solution offers many advantages for issuers, allowing them to expand their line of innovative card products, save on plastic card fulfilment costs, and quickly and securely bring new services to market. Not only does the solution make it possible to issue a mobile version of a client's existing card, virtual prepaid card can also be offered to new customers. These cards can be issued instantly at mobile sales points or during public events as a ticket and means of payment.

"We see our clients are interested in the WAY4 HCE solution and are already implementing several pilot projects in Europe and Central Asia. In the near future, we plan to support international payment system protocols — MDES and VDEP, which will make it possible for banks to provide contactless payments with MasterCard and Visa cards using payment system tokenisation services", - notes Dmitry Dovgal, deputy director of business development at OpenWay. 

The WAY4 HCE solution was developed to be compatible with any processing system. Moreover, OpenWay has created a set of developer tools, WAY4 HCE SDK, so banks can build WAY4 HCE into their own mobile applications (for example, mobile banking apps operating on WAY4 or another platform).

According to National bank data, in Belarus more than 10% of all payment terminals installed support contactless payment.

Priorbank

Priorbank is one of the largest banks in Belarus, and is a member of the Austrian banking group Raiffeisen Bank International AG (RZB). Founded in 1989, the bank has firmly established itself as a market leader in financial innovations. It is one of the founders of the "Belkart" national card system, and is an initiator of the newest developments in the area of cashless payment and remote banking systems in the Belarus banking sphere. The bank was the first to issue Visa and MasterCard plastic cards in Belarus. Priorbank is a multiple winner of the "Bank of the Year" title according to The Banker, Euromoney, and EMEA Finance magazines. Priorbank is the only bank in Belarus with western European capital, offering clients European quality services.

http://www.priorbank.by

OpenWay Group

OpenWay Group was founded over 15 years ago. We develop WAY4, an innovative e-payment processing framework for banks, payment processors, telcos and petrol companies.

OpenWay was initially headquartered in Brussels, Belgium with one R&D team there and another in St. Petersburg, Russia. Today we are a global company with 10 offices and 130 customers around the world.

Our portfolio consists of WAY4 Card and Merchant Management, Financial Switching, Personalised Channel Banking, Prepaid Cards, E-Commerce, Mobile Payments, Digital Wallet, DCC, Fuel Cards, and other solutions.

Our customers include tier-1 giants, mid-size companies, and ambitious start-ups:

  • Equens, Western Europe (SEPA-acquiring of 0.5 million merchants on WAY4)
  • Savings Bank of Russia (issuing and acquiring back-office, and authorization switch for 140 million credit and debit cards on WAY4)
  • SIX Group, a leading European payment company processing over 4,000,000 cards and migrated over 30 banks to WAY4 within 15 months
  • Comdata, USA (commercial cards on WAY4)
  • Network International, the Middle East (a processing center with approximately 60 banks on WAY4)
  • Raiffeisenbank Int., Eastern Europe (a processing center for 15 banks and countries on WAY4)
  • Bank Audi, MENA region (more than 40 card products on WAY4 including NFC)
  • Halyk Bank of Kazakhstan (the first bank to launch Visa P2P Mobile Transfers)
  • Lukoil Intercard, Eastern Europe (B2B fuel cards with comprehensive loyalty services on WAY4)
  • WAY4 live installations consistently demonstrate high performance; for example, 90 million cards issued and authorized on a single platform and 12 million POS/ATM clearing transactions processed daily by a single acquirer.

OpenWay, known for its commitment to long-term relationships, both serves customers locally and provides global support. Today our team unites approximately 500 payment business, digital technology, and security professionals.

Raiffeisen Bank International Selects WAY4 for Processing Centre Upgrade

  • Raiffeisen Bank Group consolidates all card business across 17 markets onto a single WAY4 transaction processing platform.
  • WAY4 is flexible to meet different market-specific requirements and changes for banks of Raiffeisen Bank International group.
  • In 5 years Raiffeisen's new WAY4 system is expected to handle 2.5 million cards, covering 60 different product types.

Raiffeisen Bank International (RBI), the leading corporate and investment bank in Austria and well-known retail banking brand across the EU with presence in 17 markets, has chosen OpenWay’s WAY4 platform to upgrade and enhance the issuing and acquiring services offered by its European processing centre to banks in the Raiffeisen network. The challenge was to consolidate all of Raffeisen’s card business onto a single location.

Before selecting WAY4, RBI had had a thorough assessment of all the major card management software vendors. The new future-proof solution which was to replace existing issuing and acquiring systems had to fit into the existing infrastructure, incorporate the business functionalities of the legacy sub-system and comply with all the functional and technical requirements of RBI’s processing centre. At the same time, it had to lower operational costs and increase the overall system performance. WAY4 was the only system that met all the requirements and confirmed its benefits through a preliminary discovery phase and proof-of-concept procedure.

Wim Pardon, Managing Director of OpenWay EMEA commented, "WAY4 allows RBI to consolidate the products of all the different banks in its group while satisfying the requirements of each bank to be able to adapt its products rapidly to specific and changing market situations. The all-in-one platform allows RBI to cut costs thanks to WAY4’s end-to-end processing which facilitates product and service centralization and streamlining of business processes while managing multi-country and multi-institution processes efficiently."

Over the next five years, the number of cards to be handled by the new WAY4 system is expected to reach 2.5 million, made up of 60 different types across 17 countries, and transaction volumes are expected to reach 250 million.

Raiffeisen Bank International AG (RBI)

Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets. RBI is the only Austrian bank with a presence in both the world's financial centres and in Asia, the group's further geographical area of focus.

In total, around 60,000 employees service about 14.2 million customers through more than 3,100 business outlets, the great majority of which are located in CEE. RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, the remainder is in free float. RBI's shares are listed on the Vienna Stock Exchange. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group, and serves as the group head office of the entire RZB Group, including RBI.