04 Mar FinTech is today a buzz word for something that we have already been doing for years
Interview with Gijs op de Weegh, COO Payvision
Payvision started in Amsterdam, just after the Internet bubble in 2002, at a time when online and mobile payments services were still in an infancy stage. Dutch Banks individually launched initiatives like Minitix and Way2Pay and other services that didn’t succeed. Far more successful was the combined effort of the Dutch banking industry in launching iDeal, an online payment service that is based on online banking and the widespread use of debit cards in the Netherlands.
Payvision also started with online payment services, but focused on credit cards, the most popular payment method for online payments across the globe. In less than 13 years the company became a global player in the payment industry; headquartered in Amsterdam, Payvision has expanded its global services in over 40 countries with offices in New York, Utah, San Francisco, Madrid, London, Toronto, Singapore, Tokyo, Hong Kong, Macau, and Auckland. As one of the fastest-growing global acquiring networks in the world, Payvision has a different proposition to most other payment service providers in the market. Specialized in global card processing for the eCommerce market, the company offers an integrated payment processing solution for acquiring banks, payment service providers and their merchants. Payvision performs several tasks for acquiring banks, and in fact, it operates as an acquirer itself, a major differentiator from other payment providers.
When trying to expand internationally, acquiring banks benefit from Payvision’s expertise in the cultural, legal and linguistic challenges. In the last decade, Payvision independently built an international network of business relationships with Acquiring Banks, Payment Service Providers, ISOs and their global merchants in the USA, Europe, Asia and the Pacific.
Gijs op de Weegh joined Payvision at the very beginning as Chief Operational Officer. He explains that in a space dominated by banks it is relatively easy to innovate as an outsider. Payvision focuses on the expansion of its global acquiring network backed by innovative technology, delivering services for acquiring banks that cover the entire value chain of credit card processing. This includes acceptance of merchants, risk management and high-end reporting tools. “Banks have too many legacy systems and too many regulatory issues to be able to keep up with innovations in the payment industry. FinTech is a new word that describes what we, at Payvision, have already been doing for years; fostering innovation based on technologies that banks are unable to adopt.”
According to Op de Weegh this trend applies not only to payments, it applies to all different aspects of banking services. “There are a lot of tech-oriented companies that compete with banks on specific areas. However, these companies will not become the next banks; they will focus on offering solutions for certain niches, and not the whole area of banking services.”
For Payvision it is important to be a real global player in a niche market: offering a multi-currency international platform for card processing and supporting payment service providers and their merchants to grow their business and expand internationally. At the same time it is very important to adapt locally, and to take into account the specificities of each region the company activates in. Payvision’s offices are therefore staffed with people who are familiar with the local markets and with the regulatory requirements for the local payment industry. Nonetheless, 80 out of a total of 140 employees are based in Amsterdam. “Despite the fact that payments is a global industry, a lot of knowledge is gathered in Amsterdam. Many leading payment companies choose Amsterdam as their home base, as we did. The availability of skilled professionals is one of the reasons to maintain the Amsterdam office as headquarter.”
Op de Weegh supports the initiative of creating a FinTech knowledge centre in Amsterdam. There is a boom in start-ups that are struggling with similar tech-related issues, but also for example with compliance and regulatory requirements. Not only is this a challenge for the start-ups themselves, but also for the DNB, the Dutch Central Bank. The payments industry was always dominated by a relative small group of known financial institutions. Nowadays regulatory bodies have to learn to cope with an industry that welcomes many new players. According to Op de Weegh, the Financial Conduct Authority in London anticipates on this trend. With its well-developed investment market, London is still the place to be when companies seek funding to expand their business, explains Op de Weegh.
Looking at the future trends, Op de Weegh foresees that mergers will take place in the payment industry, because card processing is a volume driven business. The new Payment Services Directive in progress contributes to the enhancement of risk management by parties like Payvision, giving the opportunity to access directly the bank account for third parties. The growth of mobile payments, thrived by Apple Pay, supports the business development of Payvision as well. “In the end these kinds of payment methods are just a different approach to an existing service that we, at Payvision, have delivered for many years; the processing of card payments in an international eCommerce landscape”.
Learn more about Payvision: www.payvision.com and you may follow company’s opinions and industry articles on the blog
Twitter: @payvision
LinkedIn: Payvision
Interview by Carlien Roodink, partner Holland FinTech
