Asia

Clik to Launch in Cambodia in 2019

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  • Cambodian startup Clik raised more than $2 million before its 2019 launch

  • Observers say that Clik is a good addition to Cambodia’s fintech scene

  • While Clik is primarily an analytics app, its CEO says that the company respects the privacy of would-be clients  

 A new payments app is about to enter the Cambodian market and it raised over $2 million before its scheduled launch. Clik is poised to launch a new payment gateway and aggregator and many are said to be excited about the event.

The only downside about the report, according to fintech observers in Phnom Penh, is the fact that there is no mention of overseas transfer rates or that users can transfer money internationally through the app.

The good news is, the app will make transferring payments between consumers and businesses more seamless. According to the fintech, Clik users can use the app to pay for goods and all they need to do is to input their credit cards or e-wallets into the app.

“Our app will be very easy to use, much easier than a payment terminal with 25 buttons on it”, explained Clik CEO and founder Matthew Tippetts while talking to Southeast Asia Globe. “The consumer will have a wide array of payment capabilities in one place – simple, seamless and safe to use”, he added.

The company notes that the app is a useful addition to the set of tools that businesses have. Tippetts said that merchants can use the app to grow their business. Clik is described by Tippetts as: “a new data company” driven by analytics. Its main purpose is to “enable offline businesses to have the same data as online businesses so that they can grow”.

According to Clik executives, the app will be aggregating user transactions and will provide merchant partners with basic data analytics. The latter will provide businesses with better insights on marketing techniques. Merchants will have the capability to offer a better and a more personalised experience to their target market as well.

The app attracted the attention of Limestone Technology, an international business headed by SeedIn’s founder Eddie Lee. It also caught the attention of Openway, a software vendor. Investments from these companies, along with money put in by a number of Cambodia’s angel investors, made it possible for Clik to raise over $2 million. The capital was raised long before the business’ scheduled launch. The company is reportedly planning to raise another million by early 2019.

Clik is primarily a data analytics app, but Tippetts made it clear that the company respects the privacy of its would-be clients. He noted that companies like Clik “need to be ethical” when collecting data, adding that he will make sure that the app is compliant with all of the data collection laws in Cambodia.

In an interview, Tippetts said: “We definitely aren’t giving out individuals’ personal data, and we’re not selling or giving any information to third parties.”

Find out more about the payment and remittance industry here.

Source: FXcompared Magazine

Cambodian Fintech Startup Clik Secures Seed Funding From OpenWay

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Cambodian payment startup Clik has announced the closing of a $2-million seed funding round led by global tech firms Limestone Technology and OpenWay and joined by several angel investors from Cambodia’s retail sector.

In an official release, the startup said it is considering raising an additional $1 million to further complement its latest funding round. Founded in 2016 by serial entrepreneurs, Matthew Tippetts, Skye Cornell and Darren Jensen, Clik is a payment gateway and aggregator that aims to provide a safe, seamless and simple payment experience.

Through utilisation of the latest technology, including mPOS, machine learning, and biometrics, Clik’s payment aggregator app facilitates swift payments using their own e-wallet or other platforms.

The company says it will be officially launching its platform in Cambodia in Q2 of 2019 upon receiving its Payment Service Provider license from the National Bank of Cambodia.

By targeting the Cambodian market, Clik will be looking to leverage on internet economy boasting over 7 million internet users and 8.4 million smartphones, which is also seeing a growing electronic payment industry.

According to Clik Co-Founder and Chief Technology Officer Darren Jensen, the proceeds from the seed funding round, which is nearly complete, has been used to drive product development for the beta version and commercial release preparations.

Clik’s funding comes in the same week as a mega-deal announced by Grab, which has paved the way for it to become the first company to launch e-money licensed payments services across six major ASEAN countries. Grab announced yesterday that it raised a $50 million strategic investment from Thailand-based KASIKORNBANK (KBank), which at the same time, marks the entry of its payment arm into the Thai market, having already established operations in Singapore, Malaysia, Indonesia, Vietnam, the Philippines. 

Source: Deal Street Asia

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.

Eurasian Bank, Mastercard and OpenWay Issued Eurasian Pay Digital Wallet

ALMATY, May 2, 2018

Today Eurasian Bank, Mastercard and OpenWay presented Eurasian Pay digital wallet to the market: now the Bank clients, Mastercard cardholders will be able to make one-touch payment for purchases with a smartphone to the terminal. Transactions made with Eurasian Pay are protected by Mastercard advanced security developments.

You can connect to the service without visiting the Bank, it is enough to have a smartphone based on Android 4.4 and higher, supporting NFC technology, and download the Eurasian Pay mobile application on Google Play. For the convenience of customers, the Bank provides the opportunity to choose two methods for confirming each payment - in the “background” mode, using the fingerprint recognition system or entering the password. Customers of other banks can also use the service by ordering a MasterCard card with home delivery in the Smartbank mobile application.

“Technology makes our life easier. We hope that Eurasian Bank customers will appreciate convenience of the new service, whose advantage lays in its simplicity. The digital wallet will allow them to make purchases in one-touch at more than 50 million trading platforms in 111 countries, while they will not need to carry a bankcard to pay. This is a new stage for our customers who are accustomed to non-cash payments, for which they receive increased bonuses, now, instead of plastic, they can switch to payments by their phone. Today, 87% of our Internet banking customers use Android-based phones. We are sure that they will appreciate the new service on its merits”, said Pavel Loginov, CEO of Eurasian Bank

Mastercard was the first to introduce the tokenization service in Kazakhstan, and now banks of the Republic will be able to provide their customers with modern payment solutions for contactless payment by smartphones and other devices. 

“Mastercard is a technology company. We develop solutions for non-cash payments and for many years have been creating innovations for mobile commerce. We are pleased that with the Mastercard tokenization platform the most modern achievements of the global payment industry are available in Kazakhstan now. Together with partners we offer convenient and safe non-cash payment tools that meet the user expectations and will promote the development of the digital ecosystem to achieve sustainable economic growth, improve the competitiveness of the economy and enhance the living standard in the country”, noted Geniyat Isin, Head of Mastercard in Kazakhstan

The Mastercard Digital Enablement Service (MDES) tokenization platform allows integrating a high level of protection in mobile payment services. The bankcard data is safe due to the latest developments in payment technologies - EMV, tokenization and cryptography. When using the Mastercard card in the Eurasian Pay wallet, its number is not stored either on the mobile device, on the Bank servers, or at the merchant enterprises. Instead, at connection of the Mastercard card to the wallet, a unique token - a 16-digit combination of numbers tied to the wallet on a specific smartphone is generated. This token is used for payment.

Each transaction made with the help of a token credit or debit Mastercard card, is reliably protected both for buyers and for outlets. For several years, Mastercard has been closely cooperating with technology partners and financial institutions, introducing the payment tokenization service. For the first time, the MDES platform was introduced in 2013 in the US, and since that time, millions of Mastercard cards have been processed as part of the tokenization service for use in popular electronic wallets.

Source: Eurasian Bank

About Mastercard

Mastercard – a technology company operating in the global payment industry. We manage the world’s fastest payment processing network, which connects consumers, financial institutions, trade companies, government and business structures in more than 210 countries and territories. Mastercard products and solutions allow you to more easily, safely and efficiently solve everyday problems, for example, to make purchases, travel, conduct business and manage finances.

About Eurasian Bank

Eurasian Bank is one of the socially important commercial banks of Kazakhstan with a 24-year history of development. The financial institution occupies a leading position in the retail banking business and provides a wide range of services to corporate and SME clients. In September 2017, the Board of Directors adopted the development strategy of the financial institution until 2022, with a focus on retail business development. 

Sathapana Bank Rolls Out New Cash Recycling ATMs; Further Strengthen Its Express Banking Service

Sathapana Bank in Cambodia announced their new Cash Recycling ATM machines. The bank invited OpenWay representatives to the ribbon cutting event.

Sathapana Bank in Cambodia announced their new Cash Recycling ATM machines. The bank invited OpenWay representatives to the ribbon cutting event.

Phnom Penh, Cambodia, 08 May 2018 – Our customer Sathapana Bank in Cambodia has publicly announced their new Cash Recycling ATM machines.  It's a milestone for Sathapana who has chosen WAY4 to renovate its banking services. The bank invited OpenWay representatives to the ribbon cutting event.

Sathapana Bank would roll out new cash recycling ATMs in branches and off- sites countrywide to bring a new level of express banking services to the customers.

The bank will introduce 50 new cash recycling ATMs across the country increasing the total number of Sathapana’s ATMs to 150 so far this year.

“Sathapana is making investment in latest technologies, such as cash recycling ATMs, to provide our customers with fast, secure and convenient banking services and experiences across the country,” said Mr. Norihiko Kato, Chief Executive Officer of Sathapana Bank.

Mr. Kato added, “With the new ATM, customers can deposit cash into their account anytime including before and after business hours, weekends, and holidays. The new machine can accept the largest number of cash notes to deposit with precise sensing technology.

Of course, with the ATM, customers can withdraw cashand make remittances and other transactions as they can already do now. Also, cash recycling ATMs reduces frequency of cash replenishment required, which improves the efficiency of operation of the bank.”

“This is the first time that we introduce our product in Cambodia. We are honored to partner with Sathapana Bank to provide our cash recycling ATM machines and services in the Cambodian market,” said Mr. Kokichi Murayama, Executive Operating Officer and General Manager Global Business Group of Hitachi-Omron Terminal Solutions, Corp.

The launch of the new cash recycling machines is one of Sathapana Bank’s initiatives to bring in the latest banking technologies to the market in order to provide customers with secure and convenient banking services.

Sathapana Bank is one of the leading commercial banks in Cambodia with total assets of over US$ 1 Billion. The bank has the second-largest branch network in the country with 168 branches and more than 4,000 employees. The bank provides full banking products and services such as loans, deposits, domestic and foreign remittances, guarantees, and export and import settlement, among others.

Source: Sathapana Bank

OpenWay's Digital Banking Solutions at Seamless Thailand 2018

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Are you visiting Seamless Thailand 2018? Looking for the platform to launch QR-code payments, digital banking and wallets, and high volume payment processing? Come to our stand #12 to explore WAY4 digital payment platform and see real-time demos!

OpenWay is showcasing its new WAY4 software solutions:

  • QR-code payments, chat bot banking, mobile commerce, tokenisation
  • Omni-channel digital banking & wallet solutions for fast customer onboarding and 360-degree banking service
  • Highly available & flexible solutions for national and cross-border issuing, acquiring, payment switching & gateway

Willing to obtain the latest Ovum reports on the best CMS and White-Label Mobile Wallet solutions? Just one more reason to visit our stand #12!

We serve 135 banks, processors, payment switching, government agencies, telecom, fleet and oil companies in Asia, Europe, the Americas, the Middle East, and Africa. We are proud to be the trusted vendor for AIS, Asbanda, Finnet, Bank Muamalat Indonesia, Bank Rakyat, Military Bank in Vietnam and other Asia-Pacific payment leaders.

OpenWay holds #1 global ranking in Card Issuing and Merchant Management and top global ranking in White-Label Digital Wallets (according to Gartner and Ovum reports in 2009-2017).

You can meet our team and explore WAY4 demos at time and place most convenient to you. Let's schedule it now!

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).

Sberbank Kazakhstan and OpenWay Launch Cardless Cash Withdrawal Service

Customers of Sberbank Kazakhstan can now withdraw cash at more than 900 ATMs without a bankcard. The service was implemented quickly and cost-effectively on the WAY4 payment platform. The new service is scheduled via Sberbank Online, one of the most in-demand online banking services in Kazakhstan. The new Cash by Code functionality was developed by OpenWay together with a third party integration company. OpenWay is a recognised leader in software for bankcard issuing and acquiring, payment processing, omni-channel banking, financial switching, and mobile payments.

Sberbank Kazakhstan, whose services are used by 20% of the country's economically active population, now offers customers the ability to withdraw cash without a card at any of 900 Sberbank ATMs across Kazakhstan. To make a cardless withdrawal, the customer simply enters a secret code at the ATM. 

Despite its simplicity, WAY4 Cash by Code guarantees a high level of security. Customers specify the withdrawal amount and a cell phone number via the Sberbank Online system. A 2-part code is generated. The customer receives the first part via Sberbank Online and the second part via an SMS message.

To withdraw the funds, the customer enters both parts of the code and the withdrawal amount at any Sberbank ATM. As an additional security measure, the codes are only valid for 24 hours and the funds return to the sender's account, if they are not collected within that time. Customers can withdraw from 1,000 to 100,000 tenge ($3-3,000).

Andrei Timchenko, Deputy CEO – Retail at Sberbank Kazakhstan: "Cash by Code gives our customers hassle-free access to their funds, even if they lose their card or forget it at home. We really focus on optimising retail banking processes -- and developing and implementing innovative IT solutions plays a key role in this."

“The Sberbank Kazakhstan team is always open to innovation. Together with OpenWay, the bank is implementing services on the WAY4 platform that enable it to increase loyalty among existing customers but also to attract new customers,” comments Dmitry Dovgal, deputy director of business development at OpenWay.

The WAY4 Cash By Code solution is already implemented successfully in various countries in Africa, Southeast Europe and Asia.

Sberbank Online offers broad functionality to the customers: p2p-transfers using a mobile phone number, transfer requests, crowdfunding, personal finance management, and many other services.

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.

Sberbank Kazakhstan

Sberbank Kazakhstan belongs to the Sberbank international group. The bank has been successfully operating in Kazakhstan for 8 years and in the top 4 banks in Kazakhstan in terms of assets. Today, Sberbank Kazakhstan has a branch network of 117 structural units, including 16 branches. The bank's central office is in Almaty.

http://www.sberbank.kz

Finnet telco – 34% Annual Growth in Transaction Flow on WAY4 Switch

OpenWay Group has been supporting the Indonesian payment leader ever since Finnet migrated to the WAY4 Switch platform nearly a decade ago. In 2015 Finnet achieved 34% annual growth in transaction flow. The year was also remarkable in terms of revenue, achieving 150% growth compared to the same period in 2014.

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PT Finnet Indonesia was established in 2005 as a subsidiary of PT. Telkom Indonesia, Tbk (TELKOM), the country’s largest telecommunications company. Finnet runs three lines of business: a bill payment aggregator, an electronic payment platform and online payment solutions. Today the company is central to the national payment ecosystem, with all the major banks, billers, e-money issuers and non-bank payment providers in Indonesia connected to Finnet.

In 2015 Finnet achieved 34% annual growth in transaction flow. The year was also remarkable in terms of revenue, achieving 150% growth compared to the same period in 2014.

Migration to WAY4 Switch – Reasons and Outcomes

Soon after Finnet was established, the company realized that legacy transaction switches could not fully support its strategy of “becoming the leading Indonesian and global-scale service provider of electronic payment systems”. Most solutions on the market were just back-end systems relying on XML protocol. Finnet required an innovative payment switch platform with powerful messaging, high availability and a modern mechanism for seamless integration and building online interfaces between information systems. 

WAY4 Switch platform from OpenWay Group met all those requirements and more. Erman Suherman adds: “We chose WAY4 for its flexibility, modularity, and cost-efficiency.“

The migration was accomplished swiftly by the vendor’s team in 2006. Since then Finnet has been profitably developing the WAY4-based part of its business. The low TCO of the new switch has allowed the company to compete on pricing with banks. Today Finnet serves and connects over 60 financial institutions and 20 billing companies on WAY4. 

In 2015 Finnet achieved 34% annual growth in transaction flow. The year was also remarkable in terms of revenue, achieving 150% growth compared to the same period in 2014.

Finnet recently decided to replace two other legacy systems with WAY4 in order to further reduce the costs of maintaining its payment processing infrastructure.

Syaiful Rahim, Finnet’s Director of Business & Services speaking about WAY4 Switch at the international conference ‘New Trends in Payment Innovations’, Vietnam, 2015

A Promising Future

Indonesia’s GDP is on the rise, and so is consumer spending. The unique geographic spread of the population explains the strong demand for branchless financial services. The popularity of online and mobile payments is growing, additionally fueled by the Government’s desire for a “cashless Indonesia”. 

The Indonesian payment ecosystem is transforming. In addition to banks, telcos, billing companies and payment gateways, there is an increasing number of e-money issuers and other non-bank financial providers. The market requires interoperability between all the payment industry players, and here lie rich opportunities for Finnet. 

In 2015 Verifone, Finnet and Telkomsel launched “TCash Tap” – NFC mobile payments in retail stores. Finnet’s role is to provide mobile user access to Indonesia's banks nationwide, facilitate interbank connectivity, and support a wide range of payment types and acceptance options. 

Finnet believes in the future of such projects, and in the benefits of introducing payment innovations of its own. 

To celebrate and support Finnet’s ten-year run of success, OpenWay and its partner Metro Asia Pacific ran a workshop in Jakarta for the Finnet team. The participants discussed payment trends, both global and those specific to Indonesia. OpenWay presented the WAY4 product roadmap, and its most recent innovative solutions – WAY4 HCE, WAY4 Wallets, WAY4 Shop, and WAY4 High Availability.

Rudy Gunawan, Managing Director, APAC, OpenWay, says: “Our partnership with Finnet helps both companies to achieve outstanding goals in shaping the payment landscape of the Indonesian market, and we believe we will achieve even more together.”

Industry: Payment switching, Telecommunications

Project: National/regional payment switching

Solutions: WAY4 Switch & Channel Banking

Project Implementer: OpenWay Group

OpenWay and Finnet Celebrated 10 Years of Partnership

In spring 2015, OpenWay, a recognized leader in software solutions for bankcard issuing and acquiring, payment processing, and omni-channel, and Finnet, one of the leading electronic payment platform and online payment solutions company in Indonesia, celebrated 10-year anniversary of the successful partnership.

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10-years history of the partnership was marked by some significant results. Now Finnet uses the WAY4 platform for transaction switching between more than 60 banks and 20 billing companies. The WAY4 Switch has already replaced one switching platform in Finnet and been selected to replace two switching platforms more. WAY4 is to support 120,000,000 transactions in 2015. Finnet plans to grow significantly in transaction flow on WAY4 further.

Rudy Gunawan, Managing Director, APAC, OpenWay, noted: “We truly appreciate our partnership with Finnet. It helps our both companies to achieve outstanding goals in shaping the payment landscape of the Indonesian market, and we believe we will achieve even more together.”

Erman Suherman, Operation, IT & Innovation Director, Finnet, said: “We are completely satisfied with OpenWay as a partner and its innovative product WAY4 as a switching solution. We chose WAY4 for its flexibility, modularity, and cost-efficiency. During these years OpenWay proved to be a reliable and supportive partner”.

As a part of this partnership OpenWay and its partner Metro Asia Pacific organised an anniversary workshop for the Finnet team. During this workshop the participants shared the latest trends of the world payment industry and discussed the opportunities in the Indonesian market. OpenWay presented the WAY4 product roadmap, and its innovative products - WAY4 HCE, WAY4 Wallets, WAY4 Shop, and WAY4 High Availability.

TOP-5 bank in Kazakhstan Launches Innovative WAY4 PIN Set Service

ATF Bank is the first bank in Kazakhstan to implement a novel way to set PINs at ATMs that is both convenient and cuts costs dramatically. The service is based on the WAY4 PIN Set solution developed by OpenWay, a recognized leader in software for bankcard issuing and acquiring, payment processing, and omni-channel banking services.

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"The WAY4 PIN Set technology allows us to offer our clients a quality and highly relevant service. When a card is issued, instead of a paper envelope with a random set of digits, the client gets an SMS message with a card activation code. Then the customer at an ATM independently sets a PIN that's easy for him/her to remember" – comments Inessa Espenbetova, the executive director of ATFBank's card business.

"We see that banks are showing a growing interest in the WAY4 PIN Set technology. Printing and sending PIN mailers is a rather expensive process. The ability for clients to set their own PINs allows banks to cut bankcard issuing costs. It's worth pointing out that all options fully comply with international payment system security requirements" – notes Dmitry Dovgal, deputy director of business development at OpenWay.

WAY4 PIN Set technology allows clients to set their own PIN using a mobile phone and an ATM. The use of two channels as well as additional restrictions such as a validity period for an activation code and a special status for a card when it is issued ensures this operation complies with all security requirements.

WAY4 supports several options that allow banks to stop using PIN mailers. Currently solutions are implemented for setting PINs at ATMs, POS terminals, through IVR, SMS messages, and web forms on the bank's website. Scenario configuration depends on the bank's business requirements.

Being the Core of the National Payment Ecosystem

PT Finnet Indonesia was established in 2005 as a subsidiary of PT. Telkom Indonesia, Tbk (TELKOM), the country’s largest telecommunications company. Finnet runs three lines of business: a bill payment aggregator, an electronic payment platform and online payment solutions. Today the company is central to the national payment ecosystem, with all the major banks, billers, e-money issuers and non-bank payment providers in Indonesia connected to Finnet.

OpenWay Group has been supporting the Indonesian payment leader ever since Finnet migrated to the WAY4 Switch platform nearly a decade ago. “During these years OpenWay has proved to be a reliable and supportive partner,” says Erman Suherman, Operation, IT & Innovation Director, Finnet.

finnet_ecosystem.png

Migration to WAY4 Switch – Reasons and Outcomes

Soon after Finnet was established, the company realized that legacy transaction switches could not fully support its strategy of “becoming the leading Indonesian and global-scale service provider of electronic payment systems”. Most solutions on the market were just back-end systems relying on XML protocol. Finnet required an innovative payment switch platform with powerful messaging, high availability and a modern mechanism for seamless integration and building online interfaces between information systems. 

WAY4 Switch platform from OpenWay Group met all those requirements and more. Erman Suherman adds: “We chose WAY4 for its flexibility, modularity, and cost-efficiency.“

The migration was accomplished swiftly by the vendor’s team in 2006. Since then Finnet has been profitably developing the WAY4-based part of its business. The low TCO of the new switch has allowed the company to compete on pricing with banks. Today Finnet serves and connects over 60 financial institutions and 20 billing companies on WAY4. 

In 2015 Finnet achieved 34% annual growth in transaction flow. The year was also remarkable in terms of revenue, achieving 150% growth compared to the same period in 2014.

Finnet recently decided to replace two other legacy systems with WAY4 in order to further reduce the costs of maintaining its payment processing infrastructure.

Syaiful Rahim, Finnet’s Director of Business & Services speaking about WAY4 Switch at the international conference ‘New Trends in Payment Innovations’, Vietnam, 2015

Syaiful Rahim, Finnet’s Director of Business & Services speaking about WAY4 Switch at the international conference ‘New Trends in Payment Innovations’, Vietnam, 2015

A Promising Future

Indonesia’s GDP is on the rise, and so is consumer spending. The unique geographic spread of the population explains the strong demand for branchless financial services. The popularity of online and mobile payments is growing, additionally fueled by the Government’s desire for a “cashless Indonesia”. 

The Indonesian payment ecosystem is transforming. In addition to banks, telcos, billing companies and payment gateways, there is an increasing number of e-money issuers and other non-bank financial providers. The market requires interoperability between all the payment industry players, and here lie rich opportunities for Finnet. 

In 2015 Verifone, Finnet and Telkomsel launched “TCash Tap” – NFC mobile payments in retail stores. Finnet’s role is to provide mobile user access to Indonesia's banks nationwide, facilitate interbank connectivity, and support a wide range of payment types and acceptance options. 

Finnet believes in the future of such projects, and in the benefits of introducing payment innovations of its own. 

To celebrate and support Finnet’s ten-year run of success, OpenWay and its partner Metro Asia Pacific ran a workshop in Jakarta for the Finnet team. The participants discussed payment trends, both global and those specific to Indonesia. OpenWay presented the WAY4 product roadmap, and its most recent innovative solutions – WAY4 HCE, WAY4 Wallets, WAY4 Shop, and WAY4 High Availability.

Rudy Gunawan, Managing Director, APAC, OpenWay, says: “Our partnership with Finnet helps both companies to achieve outstanding goals in shaping the payment landscape of the Indonesian market, and we believe we will achieve even more together.”

The First Implementation of UnionPay Chip Issuing and Acquiring

Central Asia's largest bank and OpenWay are the first to launch UnionPay chip card issuing and acquiring in the region.

The First Implementation of UnionPay Chip Issuing and Acquiring.jpg

December 22, 2014 - Almaty, Kazkhstan

People's Bank of Kazakhstan (Halyk Bank), the largest bank in Kazakhstan and Central Asia, together with OpenWay, a recognized leader in software for bankcard issuing and acquiring, payment processing, remote banking services and financial transaction routing, have launched issuing and acquiring of UnionPay UICC chip cards.

This is the first project of its kind in Central Asia.

The project to support the issuing of UnionPay chip cards and acquiring at ATMs and POS terminals was completed in just four months. The cards are being issued as UnionPay and Altyn co-branded cards. Altyn is the bank's local payment system. 

"When implementing innovative technology we put our customers first,” says Marat Almenov, the deputy chair of the management board at People's Bank of Kazakhstan. “Considering the growing worldwide popularity of UnionPay and expected demand for its cards, we have introduced the co-branded Altyn UnionPay and Altyn UnionPay Gold cards. These cards meet our customers’ demands and fully comply with the latest international standards for security," explains Mr Almenov.

"For UnionPay – a payment system with ambitions in Central Asia – it is very important to partner with market leaders in order to develop our business. People's Bank of Kazakhstan’s card business is already being managed on the WAY4 processing platform, which has proven highly reliable. We are happy that we have chosen the right partner for this project.” - notes Zhang Chendong, country manager of UnionPay International in Kazakhstan.

Dmitry Dovgal, OpenWay’s deputy director of business development, points out that the swift implementation of the UnionPay smart cards forms a logical link in the chain of numerous other innovative issuing and acquiring projects implemented in partnership with People's Bank of Kazakhstan. 

OpenWay collaborates with UnionPay International in several global markets including issuing and acquiring projects launched on the WAY4 platform in Iceland, Kenya, Russia and Azerbaijan. Implementations are also being carried out in other countries. 

About People's Bank of Kazakhstan (Halyk)

People's Bank of Kazakhstan is one of Kazakhstan's leading financial groups and retail banks with the largest customer base and distribution network in Kazakhstan. The Bank is developing as a universal financial group, offering a broad range of services (banking, insurance, leasing, brokerage, and asset management) to its retail, small and medium enterprises and corporate customers. People's Bank also operates in Russia, Georgia and Kyrgyzstan.

About Union Pay International

UnionPay International (UPI) is a subsidiary focusing on development and support of UnionPay's international business. Its founder is China UnionPay (pinyin: Zhōngguó Yínlián, CUP) – China's payment system. Founded in 2002 by the country's leading banks, its creation was initiated by the State Council and People's Bank of China. Just two years later, the company began working outside China and currently operates in 142 countries.

 

A New Generation Bank Launches its Card Business with OpenWay

Bank of Astana, which operates in five regions of Kazakhstan, has announced the launch of its card business on OpenWay's WAY4 platform. OpenWay is a recognized leader in software for bankcard issuing and acquiring, payment processing, remote banking services and financial transaction routing.

  • New launch of the card business on WAY4 in Central Asia
  • Three months is a new record for in-house implementation

The joint OpenWay and Bank of Astana team was faced with the challenge of launching the bank's own processing centre in record time. This was due to the sharp growth in the bank's business. The team implemented the solution in just three months.

As part of the project, OpenWay provided the bank with a processing solution for issuing and acquiring debit products, including contactless MasterCard PayPass cards. The project also plans for integration with a partner bank's ATM network. In the near future, Bank of Astana plans to start issuing credit cards and installment loans on the WAY4 platform and to launch a WAY4-based online system for monitoring transaction risks.

Yulia Kim, Deputy Chairman of the Board, Bank of Astana, commented: "Bank of Astana has positioned itself a new generation bank. It's our goal to provide financial services of exceptional quality that even surpasses our clients' expectations. OpenWay's solution makes it possible for our bank to offer retail clients modern and innovative card products”.
Dmitry Dovgal, OpenWay's deputy director of business development, noted: "The card market in Kazakhstan is dynamic, so it's important to be able to react quickly and modify business according to trends and changes in technology. The WAY4 platform chosen by Bank Astana provides for flexible configuration of products and ensures system scalability and reliability".

Bank of Astana

Bank of Astana began activity in 2008, and from the start of 2014 under a new brand name "Bank of Astana" has offered a full range of bank services to individuals and business partners. At the beginning of 2013, the well- known Kazakh investor Kenes Rakishev became a shareholder in Bank of Astana, as did Olzhas Tokhtarov, the chairman of the board of "SAT&Co". From their first day at work, the new shareholders and the Board began developing a strategy for a “new generation” bank together with Oliver Wyman, a leading western consulting company. According to financial statements for 2013, audited by KPMG, Bank of Astana's assets were 79.6 billion tenge, equity was 12 billion tenge, and loan profile was 43 billion tenge.

WAY4 Switch Is Chosen For Regional Interbank Switch In Indonesia

ASBANDA, an Association of Regional Development Banks in Indonesia, and OpenWay, a recognised leader in software solutions for issuing and acquiring, payment processing and switching, and omni-channel, are starting the switching project which will connect 26 Regional Development Banks (BPD) of 34 Indonesian provinces.

OpenWay was chosen because of its broad and successful experience in implementation of the switch projects both of regional and national scale. This vendor’s portfolio includes National Payment Switch for Central Bank of Bangladesh connecting 17 banks, Universal Electronic Card switch for about 15 largest Russian banks serving more than 90 million active cards, and Finnet’s payment gateway with more than 60 banks and 20 billers connected on a single WAY4 platform in Indonesia. 

ASBANDA in partnership with OpenWay will implement a comprehensive flexible BPDNet Online switch solution that consolidates ASBANDA member banks on a single processing platform. The WAY4 Switch solution developed by OpenWay is a solid technical foundation for this project. The planned infrastructure on WAY4 includes connections between all the provincial Regional Development Banks, existing local and domestic switches, mobile operators, and billing aggregators in Indonesia. Volume transaction projection is 20,000,000 transactions for 2015.

BPDNet Online switch will give opportunity to all participating banks to offer a variety of the interbank and payment services to the customers with better pricing and enhanced service. 

Erzon MM, Head of BPD Regional Champion ASBANDA, stated: “BPDNet Online is a big milestone for all ASBANDA member banks. It will optimize the payment infrastructure between provincial banks that allows them to compete with leading commercial banks in Indonesia and deliver the best payment services to customers. Our choice of WAY4 as a processing platform was made due to high security standards, flexibility, time to market provided by this solution. Also we paid attention to the vendor’s reputation in Asia-Pacific region”.

Rudy Gunawan, Managing Director, OpenWay APAC, commented: “OpenWay is strengthening its position in Indonesian market. I believe that our project with ASBANDA will be smooth and well structured because of OpenWay’s relevant project experience in Asia and other regions”.

About ASBANDA

ASBANDA was founded in 1999, the Association of Regional Development Bank (ASBANDA) is an autonomous, nonprofit organization, who serves as the receptacle in unifying and to strengthen cooperation mutual inter bank regional development throughout Indonesia. ASBANDA with the BPD Regional Champion (BRC) program will introduce BPDNet Online solution to the member of ASBANDA as a big milestone to support 27 BPDs to compete with leading commercial Bank in Indonesia.

Kazkommertsbank Implements WAY4 Datamart for Effective Business Intelligence

Kazkommertsbank, Kazakhstan's largest bank and OpenWay, a recognized leader in software for bankcard issuing and acquiring, payment processing, remote banking services and financial transaction routing have implemented the WAY4 Datamart business intelligence solution, allowing the bank to track the efficiency of its card business.

WAY4 Datamart is a business intelligence database that allows issuers and acquirers to evaluate the effectiveness of various card products based on data exported regularly from the WAY4 card system. The solution can be used to generate statutory reports for government authorities, and specialized interactive reports to analyze the profitability of the bank's card business, broken down by products, time periods, financial institutions and other parameters. 

The bank's team and OpenWay implemented the full configuration of WAY4 Datamart covering the entire issuing and acquiring business managed in WAY4. Bank employees can use the solution to independently create reports and filter data from the system in various ways, using standard data warehouse data marts.

Currently, the bank gets accounting reports from the WAY4 Datamart warehouse, with the possibility to view trial balance, balance sheet and client account statements, expenses and revenue by account types and for various periods; statistic reports for the National Bank and payment systems; as well as interactive analytic business reports – expenses and revenue for retail networks and card products, including credit card products, structure of credit card debt, revenue for partner bank processing, etc. Data are exported to the warehouse daily. 

“We can already say that the implementation of WAY4 Datamart has significantly improved the performance of the internal bank reporting system. We plan to track card portfolio statistics that are of interest to us, and by analyzing them, decide whether to develop a particular product, as well as to create an archive of data from the production system, allowing further analysis of information for long periods of time” comments Inessa Yespenbetova, director of Kazkommertsbank's bankcard department.

“We've been in partnership with Kazkommertsbank for over 15 years. I'd like to point out that it is with this bank that we have implemented a number of innovative projects, including contactless payments, EMV support and now WAY4 Datamart” notes Dmitry Dovgal, deputy director of business development at OpenWay.

About Kazkommertsbank

Kazkommertsbank is one of the largest commercial banks in Kazakhstan and Central Asia and is the largest by total assets in Kazakhstan. According to data for September 30, 2013, its assets were 2,635.1 billion tenge (equal to USD 17.1 billion). The bank offers a broad range of services through its branch network in 45 cities across Kazakhstan. Kazkommertsbank also has subsidiaries in Kyrgyzstan, Tajikistan and the Russian Federation.

The bank has a reputation as the most technologically advanced bank in the country and is a leader in launching and implementing innovative solutions for products and services, especially in operational banking, the card business and remote service. Kazkommertsbank has the most functional Internet banking in Kazakhstan, including mobile banking, is the exclusive issuer of AMEX cards, and the only bank in the country to offer clients a unique loyalty programme.

The bank is currently focused on expanding cashless payments, developing contactless payment technology and mini POS. Kazkommertsbank was incorporated in 1991, initially specializing in services and financial products for large and medium corporate clients in all sectors of the Kazakh economy. In 2006, the bank launched the KAZKOM trademark for working with retail customers and small and medium-sized enterprises. Global depository receipts (GDR), the basic asset of which is the bank's shares, are listed in the London Stock Exchange (LSE). The bank completed an IPO in GDR form on the LSE in November 2006, the first CIS bank to do so, for a total amount of 845 million USD.

 

WAY4 Platform Powers the National Payment Switch of Bangladesh

WAY4 software from OpenWay Group is chosen as a solid technical foundation for the National Payment Switch of Bangladesh. Early in 2012 Infotech Global Pte ltd., OpenWay’s partner in Asia signed the contract with Bangladesh Bank to carry out the implementation of the new infrastructure. The project has received funding and support from the World Bank.

“Infotech is proud to contribute to the modernization of Bangladesh payment industry and to apply the industry’s best practices to this project. At the moment our team is connecting the WAY4-based switching system to several banks and international payment schemes - VISA, MasterCard, and Amex,” says Suresh Agarwal, Managing Director of Infotech Global Pte Ltd.

The National Payment Switch (NPS) of Bangladesh is a part of the World Bank's “Central Bank Strengthening Project”. Such projects serve to increase the transparency of internal and cross-border electronic payments, optimize all regulatory and supervisory procedures, and reduce related costs. Commercial banks having an ATM/POS/e-Payment Gateways/Mobile payment switches or being connected to any other shared switch network will be able to send inter-bank payment instructions to the NPS for clearing and settlement purpose.

Bangladesh Bank

Bangladesh Bank, the central bank and apex regulatory body for the country's monetary and financial system, was established in Dhaka as a body corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December 1971. At present it has nine offices located at Motijheel, Sadarghat, Chittagong, Khulna, Bogra, Rajshahi, Sylhet, Barisal, and Rangpur in Bangladesh; total manpower stood at 4926 (officials 3910, subordinate staff 1016) as on December 31, 2011. BB performs all the core functions of a typical monetary and financial sector regulator, and a number of other non-core functions.

Infotech Global Pte. Ltd.

Infotech Global Pte. Ltd., is a leading consulting firm and systems integrator of IT infrastructure for governments and enterprises in emerging economies. Their core expertise and extensive experience lies in the financial sector, as well as providing capital market solutions and eGovernment solutions. Within the capital markets space, Infotech has provided trading solutions, brokerage solutions as well as asset management solutions. They work extensively with projects funded by the World Bank, IDA, and ADM, and have successfully delivered solutions for projects such as Ghana Stock Exchange, Ghana Securities and Exchange, Bhutan Stock Exchange and eRegistration for the Registrar General‘s Department in Ghana. Infotech is focused on being a boutique systems integration company renowned for solutions that are tailored to their customers' requirements. In order to deliver the best possible solution and support to their clients and to be able to able to cover a wider touch point, they have offices in Singapore, Dubai, Ghana and Pakistan