In an intensely competitive telecom industry, many businesses specialize in providing telecommunications services, efficiently building their infrastructure, and growing their subscriber base. Naturally, they are always looking for ways to boost their revenue and leverage new technologies to accelerate their growth. One such rapid way for them to enhance their offerings is through establishing their own payment solution. While this presents a significant opportunity for telecom companies, developing a payment solution from scratch also demands considerable effort, expertise, and resources. Moreover, there are a myriad of potential risks, such as potential delays at various stages of development, challenges in maintaining the security of transactions, and many others.
Luckily, there are plenty of innovative white-label fintech solutions on the market today that do not require reinventing the wheel. By partnering with established fintech companies, telecoms can launch their own payment services quickly, efficiently, and securely on the basis of a ready-to-use payment system.
At Akurateco, we specialize in helping telecom companies tap into these opportunities. Currently, several of our customers, including MontyMobile, Ooredoo (the partner of TESS Payments), and a major telecom provider in Central Asia whose name we cannot disclose, successfully operate using Akurateco’s white-label payment gateway to offer branded payment services to their customers. In this article, we’ll explore how telecoms can unlock additional revenue streams with white-label payment software and share their real-life business case.
What is a white-label payment gateway?
Before we go any further, let’s define what is a white-label payment gateway. Basically, a white-label payment gateway is ready-made payment software that companies can rent and brand as their own. Imagine having a sophisticated, fully customizable payment system that you can tailor to reflect your brand’s identity without having to build it from scratch. That’s precisely what a white-label payment gateway offers.
White-label payment gateways come pre-equipped with a wide range of features that streamline the payment process. These include support for various payment methods like credit cards, bank transfers, and digital wallets, as well as advanced security measures to protect transaction data. They are also equipped with the latest technologies and features, such as intelligent payment routing and cascading, smart checkout, recurring payments, payment analytics, etc.
To learn more about white-label payment gateways, read our complete guide below.
How can telecoms benefit from a white-label payment gateway?
White-label payment gateways offer several major benefits for telecom companies. By partnering with a white-label payment software provider, telecoms can:
Offer branded payment services
White-label payment gateways provide telecom companies with ready-to-use payment systems. In this way, they can launch their payment business under their brand name with no development needed. Considering the ease of integration, telecoms can start offering payment services to their customers in a matter of weeks.
By expanding their service offerings, telecoms can generate more profit from their existing customer base. As their customers already leverage their services, they are more likely to use the company’s payment solutions.
Expand the customer base
Plus, becoming a payment provider opens the avenue to expand the customer base, attracting both new customers and merchants. Being an established and reputable company will definitely give them a competitive edge, opening additional revenue streams through merchant fees and subscriptions without extensive effort.
Earn revenue from transaction fees
By leveraging a white-label payment gateway, telecom companies can significantly reduce transaction processing fees. This allows them to retain a larger share of their revenue that would typically be allocated to external payment providers for handling customer transactions. Given the high volume of transactions telecoms manage daily, tens of thousands of dollars could be saved.
Additionally, by acquiring and onboarding their own merchants, telecom companies can also generate substantial revenue. Each payment processed through a white-label payment gateway — whether by the telecom customers or merchants — directly contributes to the company’s revenue, enhancing profitability and supporting sustainable growth.
Provide value-added services
Leveraging a white-label payment gateway, telecoms can deliver additional payment services, such as payment analytics, automated billing, smart payment routing and cascading, multiple payment methods, etc., already built into the software. With this, merchants can gain additional benefits from partnering with the company, motivating them to establish a partnership.
Ensure compliance and security
White-label payment gateways have robust compliance and security features. They ensure that all transactions are compliant with regulatory standards, relieving telecom companies of managing complex regulatory requirements on their own. As a result, their customers will leverage a secure payment platform, safeguarding the company’s reputation.
Scale up
White-label payment solutions are designed to be scalable. It allows telecom companies to start small and expand as demand grows, catering to a growing customer base. So, as the telecom company scales its payment services, it can gradually increase its revenue.
Enhance customer loyalty
Offering integrated payment solutions can significantly boost customer retention. Customers value the convenience of managing all their payment needs via a single, trusted provider. This integrated approach increases the lifetime value of each customer by embedding them deeper into the telecom company’s ecosystem.
Unlocking additional revenue streams with a white-label payment gateway: Our Client’s Success Story
Due to the customized and branded nature of our white-label payment solutions, some of our clients prefer to maintain confidentiality. While sharing their story in detail, we will not disclose their real name to protect their privacy.
Client’s background: Our client is a subsidiary of a major telecom company based in Central Asia. By partnering with Akurateco, they became a payment provider using a white-label payment gateway in addition to their existing mobile telecommunications services. Now, they manage both the mobile and payment needs of their clients seamlessly. They have also issued their own Visa Platinum card linked to mobile accounts, supporting international transfers without additional fees up to a certain limit.
To launch their services, they navigated the complex landscape of obtaining a financial license and developing a robust technological product. Here’s how they leveraged their partnership with Akurateco to achieve remarkable results.
Integrating Akurateco’s white-label payment gateway
First and foremost, the client started leveraging our white-label payment gateway to enhance their service capabilities. This move allowed them to efficiently manage and process transactions across their telecom and financial services, providing customers with a seamless payment experience. By integrating our platform, the client not only unlocked a new revenue stream but also positioned themselves to offer tailored, branded payment solutions that resonate with their customer base. It enabled smooth and secure transactions, reinforcing customer trust and loyalty, and paving the way for future service expansions and innovations.
Launching a proprietary payment card
The company issued its own payment card, designed for its subscription-based customers. To be able to do this, they secured a financial license, which allowed them to operate as an independent payment provider. By integrating this card into their telecom ecosystem, they enabled their customers to pay for telecom services seamlessly. It enhanced customer trust and significantly reduced processing costs.
Reducing costs and increasing profit margins
By becoming their own payment provider, the client avoided the need to share a portion of their revenue with third-party payment processors. Leveraging a white-label solution kept transaction fees within the company, maximizing revenue. This move allowed them to retain more of their earnings and reinvest in further service improvements and development.
Creating a merchant-friendly payment ecosystem
The client encouraged the use of their branded cards by offering attractive discounts and loyalty programs. For instance, customers who used their cards to pay for goods and services from affiliated merchants received additional benefits such as extra minutes or internet coverage. These incentives fostered a loyal customer base and attracted more merchants to join their payment network, as they saw the real benefits of partnering with the client.
Enhancing customer and merchant loyalty
The client’s innovative approach didn’t just stop at simply providing payment services. They integrated loyalty programs that made their cards even more appealing. Cardholders enjoyed exclusive discounts and offers, motivating them to use their cards more frequently. Merchants, in turn, benefited from increased customer traffic and sales, motivated by the perks associated with the client’s card transactions. This win-win situation strengthened the ties between the client, their customers, and their merchant partners.
Overall, by leveraging a white-label payment solution and becoming their own payment provider, the client unlocked additional revenue streams, reduced processing costs, and created a compelling value proposition that attracted both customers and merchants.
Over to you
White-label payment gateways present a strategic opportunity for telecom companies to diversify their revenue streams and enhance their service offerings. By adopting these solutions, telecoms can swiftly launch their own payment provider, attract new customers and merchants, and access untapped markets with minimal development effort in just a few weeks.
Akurateco has a proven track record with telecom clients, delivering significant results. We’re eager to help you elevate your service offerings and achieve your business goals.
To unlock additional revenue streams and maximize payment conversion, book a free demo of our system. Our experts will gladly show you around. No strings attached! Request a Demo |
