Maximizing Turnover Through Better Acquiring – Solidgate – The Road to $100 Billion Through Tokenization  

For Solidgate, it’s all about partnerships. 

The London-based international FinTech helps online merchants and commerce platforms to accept credit cards and alternative payments. Their goal is to make international online payments simple, but they’re working in a field that is frequently extremely difficult. Add subscription billing to the mix and the complexities increase. One declined payment could break years of repeat business, fraud is common and digital companies have to put serious capital behind marketing and discounts to compete in a difficult and crowded marketplace . 

They came to Silverflow with ambitious goals: to process $100 billion in payments per year. 

Solidgate needed a tailored solution, and tokenization is key to this. By turning each card into a network token, their acceptance rate can be significantly increased.  

Each payment requires information, and more legitimate information means a greater chance of acceptance. Of course, giving companies around the world huge amounts of information about a customer every time that they pay introduces security concerns – data breaches are rare, but they happen, and nobody wants their purchases made public. Tokenization turns this data into a secure, encrypted ‘token’, and this token can be re-used. You can imagine how useful this will be for subscription payments – payment data only needs to be taken once and can be re-used indefinitely because the underlying information is updated automatically. This ensures that if a payment works once it will work forever, which is vital for uninterrupted subscription billing.  

“We haven’t just enabled tokens on recurring transactions, we have enabled them on every payment,” says Solidgate’s CBDO, Yurii Candela. “As mentioned, in the subscription economy, it’s vital to get the highest possible acceptance rate on the first payment – if you can get the first payment accepted then it’s four or five times more likely that the next payment will be made.” 

“If you tokenize subscription payments from the start then you’ll get a provisional token from Visa or Mastercard directly, and this token can be sent through Silverflow’s platform to the card networks – if we do this approval rates increase by 8%. For instance, if you process $100 million per month of initial payments you will get an extra $7 to $8 million, then over the next four to five months that becomes almost $50 million.” 

The results? They have boosted their clients’ conversion rates by 7%, boosted their own bottom line by over 20% and are on track to process over $100 billion annually within the next five years.  

Yurii couldn’t be happier with Silverflow as a partner: “It's a long-term partnership, with a horizon of five years plus. We make around 40% of our revenue around the holidays in the U.S, so we will need domestic acquiring connectors for our platform in that region as part of our ambition to expand in the United States.” 

“Silverflow have been vital to all of this, and we fully anticipate them being a part of our company for many years to come.”