Olda Bajer, CEO of the MALL Group, was interviewed on-line by Jiří Rostecký from the Mladý podnikatel [Young Entrepreneur] server. Is Mall experiencing a crisis? How did it prepare for this situation? What is…
MALL Pay, the joint fintech venture of the retailer MALL Group and the bank ČSOB, has completed its full integration into the payment gateway of ČSOB, which is one of the dominant players on the Czech online market, handling approximately 36.8 million e-commerce transactions in the total value of CZK 32.4 billion via the gateway last year alone. Up to one thousand e-shop operators will now receive the possibility to use the deferred-payment method for online purchases. For ČSOB, this is the first step of the innovation plan aimed at preparing the payment gateway for closer interconnection of digital banking and e-commerce; for MALL Pay, it involves a significant expansion of the portfolio of e-shops where it is possible to use its method to pay for goods and services.
The chosen solution for full integration is unique in the region. Within Europe as a whole, it is offered to e-shops only by the pioneer of deferred payments, the Swedish fintech company Klarna. Activation of the deferred-payment service in individual e-shops will not happen automatically; it will be launched for operators interested in using it upon conclusion of a contract with MALL Pay. The duration of entire process, which has undergone pilot testing in recent months, will be only a matter of days. The complicated integration and accounting processes that comprised one of the biggest barriers to the introduction of deferred payments will thus be eliminated. MALL Pay anticipates that the number of newly activated e-shops will exceed one hundred by the end of this year and that hundreds of thousands of customers will be able to use the deferred-payment service.
“E-shop owners will soon be able to use one of today’s most efficient and fastest-growing payment options. Deferred payment can bring in a large number of new customers. It significantly increases the number of completed purchases and reduces costs. Its direct connection with the ČSOB payment gateway minimises the necessary administration, while also simplifying integration and operation,” says Adam Kolesa, CEO MALL Pay.
The diversity of payment methods is currently of absolutely key importance for e-shops. With the expansion of target groups and the inflow of new customers into the online arena, we must seek out new ways to serve them quickly and in a high-quality manner. Furthermore, we are aware of the strength of deferred payments in e-commerce in, for example, the Nordic markets, which is why we decided that its integration into the ČSOB payment gateway through MALL Pay will become a priority. But we’re not stopping there at ČSOB. For example, there are price-comparison platforms in the pipeline that will offer additional attractive services to clients in the payment gateway,” says Michaela Lhotková, head of innovation and payment solutions at ČSOB.
MALL Pay anticipates a full range of other essential innovations this year. In addition to completing the integration, it is currently finalising the process of obtaining a payment-institution license, which will enable it to offer its own credit cards and premium accounts. In connection with the larger number of participating e-shops, MALL Pay intends to become the most significant Czech fintech company focused on mainstream customers.
About MALL Pay
MALL Pay (MallPay s.r.o.) is a joint e-commerce fintech venture of MALL Group (MALL Group a. s.) and ČSOB (Československá obchodní banka, a.s.). It enables free-of-charge deferment of payments for purchases in e-shops, as well as complete separation of the selection of payment method from the actual purchase. Customers thus decide to pay for purchased items when they decide to keep them. The deferred-payment service is currently considered to be the fastest-growing payment method, due primarily to the mutual benefits that it provides for customers and e-shops, which, unlike in the case of cash on delivery, for example, receive funds almost immediately.