“70% of our tenants are PSPs serving high-risk merchants”
Alexander Mihailovski, one of the founders and Development director of eComCharge LLC, explains to whom he and his team have been leasing branded payment gateways and online payment processing systems built on the beGateway payment platform for 8 years.
When we started offering the beGateway payment platform for those who need to get payment gateways and payment processing systems under their own brand names, we identified three large segments that might be interested in our software:
- Payment service providers who need the appropriate software.
- Acquiring banks that plan to create an in-house payment service provider.
- Large merchants who need their own payment processing software to route and manage transactional flows of their business when dealing with a large number of payment service providers.
We do our best to promote the beGateway platform in all designated segments at once. We have achieved the greatest success in the first one. Today, 90% of customers of the beGateway payment platform are payment service providers.
At the same time, the main tenants of the beGateway payment platform (70% of the total number of our clients) are payment service providers who work in the high-risk niche such as gambling, forex, online casinos, etc.
Such processing companies, as a rule, are created by people with experience in this particular niche. Usually, they come from banks serving high-risk merchants, or they can be agents who successfully work with online casinos and generate traffic for their customers, or they may introduce large merchants to various acquiring banks, etc. At some point, they decide to start their own payment processing business in order to make money on high margin services. As a rule, they already have an established customer base, connections with acquiring banks, but they do not have their own payment gateway and processing system that could link their merchants and the acquiring banks. They rent software of a payment gateway and online payment processing system from us and eventually receive their own branded payment gateways and turnkey processing systems.
The remaining almost 30% of our tenants are processing companies serving low or medium-risk merchants.
Since 2016, there has been an acquiring bank among our clients of the beGateway platform. This is a Belarusian bank that was looking for a technical solution to connect its own merchants quickly and conveniently.
We are now negotiating with another Belarusian payment company and a company from South Africa that have been successfully operating in the retail acquiring market for a long time. Both of them are planning to enter the Internet acquiring market and are interested in the possibilities of our beGateway platform in order to offer their own branded payment gateways to their customers who need the Internet acquiring services.
Unfortunately, there have been no representatives of our third segment among the clients of the beGateway platform yet. Experience has shown that promoting the beGateway platform for payment service providers and for merchants should be different. In addition, merchants often need less functionality. Our immediate plans are to adjust the offer for large merchants and relaunch the promotion campaign in this segment.