Its three business streams CNP straight-through-processing, e-wallets and white labelled eCommerce platforms are all poised for growth. Alison Ebbage talks to Optimal Payments about its impressive recent growth, and future development plans.
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Formed in early 2011 following the acquisition of Optimal by Neovia Financial (previously Neteller), Optimal Payments has made a considerable impact in e-commerce and prepaid.
Both companies have long track records in the payments industry. Where Neovia focused on e-wallets for the gaming industry, Optimal was focused more on straight-through-processing (STP).
The new company now stands on a tripod, says Danny Chazanoff, COO at Optimal Payments. The first leg is Netbanx, the companys card-not-present STP platform, which processes credit and debit card-not-present and non-card payments for online and mail-order/telephone retailers. Secondly, there is the Neteller e-wallet. Finally, and perhaps most crucial to future development, the firm also provides white label services to other market players.
Europe-based Neovia gained significantly greater US exposure from its acquisition by Optimal. The companys customer profile split is 25% North America and 75% Europe, and immediate geographic expansion is now sought in Asia, Latin America and Australia to give the firm a more complete global profile.
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By GlobalData"The deal was a meeting of minds and gives the new company a depth and reach that should stand it in good stead," says Chazano.
Interim results in September 2011 reflected the impact of the first five months of the acquisition, with revenues jumping from $30.8m to $57.4m with a business revenue source split standing currently at 65% for STP and 35% for e-wallets (stored value).
"The business and the technology sat behind it is automated, very process driven and scalable," Chazano says.
"This means that merchants of all shapes, sizes and geographies can have a service that encompasses all needs, but that can be tailored to them as well. The aim is to have a 360 degree market coverage capability."
The white label capability is, according to Chazano, one of the key growth areas for the newly-combined operation. It currently accounts for 15% of the STP business.
The company intends to provide not just the platform, but add onto that a whole host of value-added services like risk management, the facility to leverage in-house technology, and superior relationship management.
In Canada, for example, Optimal provides the underlying technology to one of the countrys largest banks, including Desjardins.
The benefit for Optimal Payments is that it gets access to the banks broad customer base while the bank gets to present Optimals state of the art technology as its own value-added offering.
Partnerships such as this must clearly be worthwhile for both parties. Chazano says the company takes great care not to cannibalise its own business but that, in some cases, a white label relationship gives some access to a piece of a pie that would otherwise not be reached easily.
"Some business revenue, via white labelling, is better than none at all," he says.
Mobile moves
Another key sector for expansion is mobile capability.
The firm recently announced it is to provide a mobile payment solution to UK insurance company MORE TH>N. The service comprises a set of mobile-optimised pages provided as part of the STP platform.
The firm already uses Optimals payment gateway to process card payments online and by telephone for its consumer-facing insurance services.
"We are looking to be a key enabler for merchants looking to capture a piece of the mobile market and give them the security tools to present themselves with confidence."
Sector wise, the split is 50% each way for gaming and non-gaming from the e-wallet.
Recent client acquisitions include the Quebec Loto- Quebec, a win that plays well into the e-wallets traditional gaming focus. The FX market also offers possibilities for expansion.
According to Chazano, the e-wallet is particularly good for the online FX market because of its flexibility. It allows traders to move large volumes of cash between sites as they look for the best rates. Users also have access to the firms prepaid card.
"The idea is not just to store funds, but to have an intelligent offering behind it that can be tailored to the users own preferences so, the storage can be on a device of the users choice," says Chazano.
