Teknasyon increases authorization rates for 250 million active customers by 6% with Payrails
Founded in 2013, Teknasyon is a tech powerhouse with operations spanning across the globe. The company's core expertise lies in developing mobile applications for an international user base. Over the years, Teknasyon has successfully launched a diverse range of top-ranking mobile apps across various categories, including productivity, entertainment, and personalization. Their portfolio now boasts over 30 mobile applications, which have collectively amassed over 1.5 billion downloads and 250 million monthly active users across 196 countries.
Teknasyon needed a payment solution provider who could not only handle the high transaction volume of a large international business but also help to amplify payment authorization rates and reduce payment declines across many markets. This can be a big challenge for any enterprise, as payments nowadays are much more complex than simply accepting card payments from your customers. A successful payments setup is deeply integrated and touches across several functions, like operations, finance, marketing as well as applications like CRM and billing. Any payment solutions designed to optimize this setup must therefore be equally deeply integrated and provide the automation and scalability needed to remove complexity for the merchant. When done right, this can lead to a significant increase in payment success and corresponding financial reward.
+6%
uplift in payment authorization rate
-10%
reduction in payment churn
-75%
less time-to-market
Challenge
Increasing authorization rates across several markets
As a leading force in global technology solutions, Teknasyon touches the lives of billions of users across all continents. Operating internationally at such a scale comes with its own unique set of challenges, as Ali Buyukbas, Business Development Director at Teknasyon Group, can attest to:
“Providing a seamless payment experience for a diverse global customer base with varying expectations and preferred payment methods happens to be a considerable challenge and requires an all-around approach.”
One major hurdle for the company was finding a reliable technology solution to process millions of transactions across Teknasyon’s entire portfolio of over 30 mobile apps smoothly and efficiently. The other major challenge was integrating new payment providers and payment methods, which are essential to successfully localize checkout experiences across the globe.
“Serving a global user base necessitates offering both global and local payment options to provide an effortless checkout experience. However, integrating and managing these extensive options of payment methods presents a substantial operational challenge.”
The introduction of various SaaS services, which required subscription payments, further emphasized the need for a sophisticated solution that could ensure uninterrupted payment services for Teknasyon customers.
After experiencing rapid growth, Teknasyon faced the challenge of integrating new payment providers and launching new payment methods as it expanded into new markets. As the company handled a high volume of transactions daily, processing payments through local channels became even more important to achieve higher authorization rates.
“Despite employing hundreds of experienced developers, integrating new payment methods and maintaining operational efficiency with our growing payment infrastructure demands significant resource allocation. This growing complexity underscores the need for a holistic approach and comprehensive solutions to optimize our payment operations. Moreover, understanding the unique local dynamics and customer behaviors associated with each market necessitates significant time and money.”
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Ali Buyukbas
Business Development Director at Teknasyon
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Solution
Powerful multi-PSP payment setup with smart routing
Teknasyon partnered with Payrails to significantly improve their payment infrastructure, which helped to increase payment authorization rates and broaden payment method coverage globally. This collaboration allowed Teknasyon to use Payrails' robust payment operating system and gain support from an experienced team of payment industry professionals.
When Teknasyon reached out to Payrails, it was critical to first understand what factors were influencing their payment authorization rates in order to devise an effective solution. After identifying that the root causes of transaction declines were 1) not offering the best payment methods and 2) not understanding the primary sources of payment failures, Payrails formulated a customized strategy for the company to improve payment success and strengthen the payment infrastructure.
In total, Payrails offered Teknasyon three tailored solutions that work together seamlessly to help enhance efficiency and performance across all of their markets.
Introduce a unified integration layer to facilitate local processing
Teknasyon has 250 million monthly active users (MAU) in 196 countries, so integrating local payment service providers was a key aspect of their payment strategy. Payrails’ multi-PSP payment processing layer abstracts the complexity of a multi-PSP set-up. This means that Teknasyon was able to take advantage of the benefits of multiple PSPs and payment methods – including favorable processing conditions, reduced churn and business continuity – by integrating one technical software layer into the existing payments infrastructure.
This approach not only reduced engineering efforts, it also strengthened Teknasyon’s presence on the local level by going to market faster and meeting the demands of individual markets, leading to increased payment authorization rates overall. An additional benefit of this integration is that Teknasyon can now create tailored checkout experiences. They have the ability to customize based on local payment preferences as well as for mobile payment experiences and recurring payment flows, which is especially critical for Teknasyon’s business model. Consistent and personalized checkout experiences have helped to build trust and loyalty among Teknasyon’s customers.
Deploy smart routing to streamline the process of switching between PSPs
Considering that Teknasyon processes over 5 million payments a month while still growing rapidly, it was critical for their business to accept payments under the most favorable conditions and with as little downtime as possible. This is where Payrails’ automatic payment routing came into play.
Automatic payment routing intelligently directs payments to the most appropriate provider according to factors pre-defined by Teknasyon, like the cost of processing fees, purchase location, transaction value, risk factors, and more. This strategy ensures that payments are authorized as seamlessly and cost-efficiently as possible. Onboarding new PSPs was also made simple thanks to the integrated token vault. With agnostic tokenization, Teknasyon can easily route transactions between different PSPs using the same payment tokens.
Payment routing is especially useful to ensure business continuity. Relying on a single PSP can be risky, but by effortlessly switching between PSPs whenever it makes the most sense, Teknasyon is now able to safeguard and enhance their revenue streams without the risk of downtime.
Implement a fallback and retry mechanism to retry failed transactions
Teknasyon implemented a fallback and retry mechanism into their payments infrastructure. This strategy is essential to reduce churn and increase payment success rates, as it automatically retries a payment if it fails, sending it to an alternative processor if required. All of this happens within seconds and without the need for customer intervention.
The retry mechanism was set up according to Teknasyon’s specific business needs and has led to increased revenue and improved customer satisfaction.
“The implementation of a PSP-agnostic integration layer and more robust orchestration tools enabled our payment infrastructure to scale seamlessly with our expanding customer base. This let our teams focus on critical initiatives such as improving success rates and driving revenue growth through the utilization of effective retry mechanisms.”
Ali Buyukbas
Business Development Director at Teknasyon
Results
By addressing their challenges from multiple angles, Teknasyon made great strides in improving its overall payment performance. This positive impact resulted in 6% higher payment authorization rates and reduced churn by 10%, significantly boosting their profitability.
Streamlined engineering efforts and downstream integration
By introducing the PSP-agnostic integration layer, Teknasyon reduced its time-to-market by 75% with each payment service provider. Payrails abstracts the complexity of a multi-PSP setup, which makes it easily adaptable to specific payment scenarios. The Payrails integration layer also minimized the company’s overall integration engineering efforts and reduced the time and resources required to maintain such integrations.
Increased payment authorization rates by 6%
By setting up automatic payment routing according to factors like location and currency, Teknasyon was able to significantly enhance efficiency and performance, resulting in an 6% increase in payment authorization rates.
Reduced payment-related churn by 10%
Integrating automatic payment retry resulted in a 10% decrease in payment-related churn. Additionally, this strategy ensured a higher percentage of successful transactions, increasing customer satisfaction and retention.
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“Our partnership with Payrails has been instrumental in our growth. Their professionalism, collaborative spirit, and commitment to our shared goals have been outstanding. We managed to reduce our time-to-market with new payment integrations significantly. The extensive knowledge and experience of the Payrails team in global payment operations helped our expansion into new markets. Their collaborative approach exceeded that of a typical vendor-client relationship; they served as an invaluable partner, demonstrating a deep understanding of our unique needs and objectives.”
Ali Buyukbas
Business Development Director at Teknasyon
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