My EU Pay's partnership with Paysolut

Faster onboarding and more scaling potential

For payment institutions, the inability to issue virtual IBANs with SEPA can be a bottleneck to scaling. It can also slow down onboarding processes that are otherwise fast.

Partnership with paysolut

My EU Pay, which offers multi-currency virtual IBANs and European virtual accounts, needed a SEPA payments gateway that would ensure it delivered the speed its clients expected. So, it partnered with Paysolut in order to issue its own virtual IBANs with SEPA, SEPA Instant and SEPA Direct Debit.

We caught up with Sarah Dees, CEO, and Victoria Westvik, Head of Business Development at parent company SOL 8, to discuss:

  • the importance of being able to issue your own virtual IBANs;
  • the flexibility different SEPA products can offer;
  • the benefits in terms of scaling of having 2 million virtual IBANs at your disposal;
  • and their experience of partnering with Paysolut for these SEPA gateway services.
"

It's kind of limitless with regards to the flexibility it gives us.

Sarah Dees, CEO of My EU Pay

About My EU Pay

My EU Pay is a UK-based, FCA regulated payments institution. It offers European virtual accounts and multi-currency virtual IBANs for consumers and businesses. But its main area of specialisation is Payments-as-a-Service. Via APIs, it provides mission-critical payments tech to companies that are not yet integrated into SEPA.

"Our focus is on expanding our tech to companies that are not able to offer the same services that we can," explains Sarah Dees, My EU Pay's CEO.

"The way we put it is that these are services for companies looking to grow their communities. Take a company like Peloton. It has a great brand and lots of followers. It might like to launch a loyalty card with a virtual account or a co-branded debit card. The companies we work with have the community and the reach, but they can't offer all of the services. That's where we can help."

Sarah points to e-wallet providers as another relevant use case for My EU Pay's PaaS offering. Often there is a need for consumers using e-wallets to convert their funds into Euros. So My EU Pay directly integrates with e-wallet providers, offering its virtual IBAN solution using either SEPA or SWIFT.

What sets My EU Pay apart from its competitors is the speed of integration. Tech is outsourced to its parent company, based in Slovenia, and is capable of onboarding new customers in as little as 2 weeks. Bigger banks and payment institutions require 6 months for the same process.

"

Speed of integration and the robustness of our technical platform are our main advantages.

Sarah Dees, CEO of My EU Pay

SEPA access a potential bottleneck for scaling

Clearly, SEPA services are key to My EU Pay's PaaS offering. As a result, streamlined access to SEPA was critical for My EU Pay's ability to scale rapidly.

Without a large number of virtual IBANs at its disposal, the company would have been limited in the size and type of client it was able to onboard. This could have hampered its growth. At an important stage in the company's development, it needed to focus on marketing and business development, not to worry about whether it had the capacity to service the clients it attracted.

Having readily available virtual IBANs for SEPA was also critical for meeting the company's value proposition of being lightning fast with onboarding. My EU Pay has its own KYC systems in place. This means if a low risk client wants to open a virtual account it can move very quickly to enable this.

However, limitations in getting their virtual IBAN would slow this whole process down, eating into My EU Pay's competitive advantage.

Partnering with Paysolut for SEPA access

To address these issues, and ensure they had the flexibility to scale as rapidly as they wanted to, My EU Pay partnered with Paysolut for issuing virtual IBANs with SEPA access.

This partnership gave them the ability to issue 2 million virtual IBANs and offer 3 different forms of SEPA payment:
1. Standard SEPA transfers;
2. SEPA Instant;
3. SEPA Direct Debit.

Standard SEPA transfers are the most popular and common because they are accepted universally.

For My EU Pay, the ability to offer SEPA Instant has proven to be a real advantage, especially from a marketing perspective. SEPA Instant enables payments within 10 seconds across the EU - this compares to 1 day transfer times for standard SEPA payments. SEPA Instant enables instant transfers across the EU 24/7 every day of the year.

Participation in SEPA Instant is voluntary and not all banks and PSPs offer this service (here is a list of all participating SEPA Instant institutions at present). Nevertheless, the huge advantages in speed make this a sought-after service for My EU Pay's clients.

Currently, SEPA Direct Debit is less in demand from My EU Pay's customer base. This makes sense given its orientation towards corporate and PaaS. However, there are still plenty of My EU Pay's clients who value having access to it.

My EU Pay's results with Paysolut

In total, Paysolut provides My EU Pay with access to up to 2 million virtual IBANs with SEPA access through the Bank of Lithuania's popular CENTROlink system.

According to Sarah and Victoria, the partnership with Paysolut has enabled:

  • Easier and faster onboarding;
  • Improved flexibility;
  • Unlimited scaling opportunities.

Ownership of virtual IBANs accelerates onboarding

My EU Pay's ability to issue its own virtual IBANs with SEPA using Paysolut has given them more control over their onboarding process.

"When we are onboarding clients it makes it much easier to have our own virtual IBAN, rather than someone else's. We want to have ownership so that we can control the process." Sarah Dees, My EU Pay's CEO

Along with control, there is an improvement in speed as well. Their slick KYC systems mean the process is already fast. And now, using Paysolut, it's even faster: "We can get the virtual IBAN in place pretty quickly as well. So that was a game changer for us."

A flexible set up that is future-ready

In terms of longer-term benefits, improved flexibility is another key advantage of My EU Pay's partnership with Paysolut. "It's kind of limitless with regards to the flexibility it gives us.

"

It's kind of limitless with regards to the flexibility it gives us. If there is a new business case, or a new PaaS client, they can be up and running very quickly.

Sarah Dees, CEO of My EU Pay

Even areas of SEPA that are less significant at present for My EU Pay (because of its primary focus on corporate and PaaS) have the potential to become more important in the future.

For example, SEPA Direct Debit has seen less take up from My EU Pay's clients so far. However, as Sarah points out, the ability to offer this payment form may unlock new verticals in the future: "As we progress with some of our relationships, I am sure they will start to add those additional services. So, it's nice to have those extra plug-ins that are available for our clients."

In other words, a broad SEPA offering creates the potential for upselling or cross selling. It enables existing client relationships to be deepened and extended in the future.

There is also a marketing benefit. "Having SEPA Instant has been very useful from a marketing perspective," Sarah explains. "That speed in being able to receive transactions has been very well received by our clients."

Tailored solutions to meet client needs

The flexibility Paysolut is enabling extends beyond these defined SEPA products, because there is also the potential to develop tailored solutions.

For example, Paysolut helped My EU Pay to streamline the process for doing batch payments. This was specifically in response to requests from My EU Pay clients that offer consumer-to-business (C2B). "We can get up to 10,000 transactions per day," says Sarah. "They've helped put together a couple of features that ensure it works as smoothly as possible."

Paysolut has also created bespoke solutions for clients of My EU Pay that needed web hooks developed.

No limit to scaling potential

Perhaps the most significant benefit My EU Pay has derived is the ability to scale as fast as it wants. "The service that we have via Paysolut and the Bank of Lithuania has enabled us to scale up very quickly." Sarah Dees, My EU Pay's CEO

"What I love about the structure is there's no limitation," Sarah continues. "We have up to 2 million virtual IBAN's at our disposal, and that really gives you a competitive advantage."

With IBAN issuing taken care of, the team can focus purely on business development and marketing. It also enables them to work with clients of varying scale and with different needs, which is critically important for their PaaS offering.

A reliable and responsive partner

My EU Pay was looking for results from their SEPA gateway provider. It was also looking for true partnership, a provider that would integrate with their operations and be an active and responsive part of their team.
"We wanted somebody with a good track record that was safe, reliable, and responsive - those were the qualities we found with Paysolut." Sarah Dees, My EU Pay's CEO

According to Sarah and Victoria, the integration process was quicker than with other partners. Since then, there have been no issues regarding facilitating payments - "it's been pretty faultless to be perfectly honest," Sarah concludes.

An active Slack channel with Paysolut, along with regular emails and calls, ensures that everything works smoothly. Plus, the fact that the Paysolut engineers are "a pleasure to work with" means Sarah and her team are never afraid to ask questions or double check on something.

This clear communication has practical benefits for My EU Pay. For example, they can guarantee fast onboarding for their clients because they trust Paysolut to deliver.

"Because everything works so smoothly, we feel very confident about committing to being able to do things quickly and for our transactions to clear very quickly." Sarah Dees, My EU Pay's CEO

A true partnership helping to grow the online payments community

Overall, this partnership is helping My EU Pay to realise its vision of growing the community of online and virtual payments. It enables them to deliver PaaS services to other companies, who in term can offer it to their end users.

In practical terms, adding Paysolut for SEPA services has enhanced onboarding speed and taken the handbrake off My EU Pay's ability to scale fast. It has also enabled a new level of flexibility and tailoring.

My EU Pay, says Sarah, are "super happy with the service and super happy with the team."

"

You feel like you are in expert hands. It feels like we're integrated and it works seamlessly.

Sarah Dees, CEO of My EU Pay

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