Highlights
- Successful and Ongoing Collaboration with Poynt: successful and long-term collaboration has resulted in multiple successful projects, including the rapid development of an all-in-one omnicommerce payment system and resulted in an acquisition by a global tech company.
- Payment Processing Expertise at Scale: developed a set of cutting-edge back-end services with an API interface responsible for a full cycle of payment processing, settlement, and integration with 3rd party payment partners.
- Significant Savings on Transaction Costs: optimized payment processing workflows, negotiated better rates with payment processors, and leveraged the benefits of being a PayFac to massively reduce operational costs for the client.
Client
The client is Poynt, a B2B company with nearly 30 years of experience operating in the eCommerce and FinTech industry. The company provides eCommerce website platform, payment gateway, point of sales, domain registration, as well as web hosting. We have been working with this client for over 5 years, and have delivered multiple remarkable projects, including building a direct-to-merchant, all-in-one omnicommerce payment solution in just 5 months.
The client is offering smart payment terminals to offline businesses which make the payment experience of their customers very smooth and easy like never before. These smart terminals are powered by their own mobile OS, based on Android. The ecosystem of our client also has an app marketplace where hundreds of mobile developers across the globe can create and sell their apps for these smart terminals.
Product
The product is a set of services responsible for a full cycle of payment processing, settlement, and integration with 3rd party payment partners. These services are aimed at businesses of any size that need an innovative POS in physical stores, or an eCommerce solution with its payment gateway online, as well as resellers, agents, and terminal app developers.
The product provides an API interface for all possible operations with merchants and their data, ecommerce orders, payment transactions, and payments. In addition, the product provides a hosted payment gateway with a JavaScript plugin, tokenization, and multicurrency. Billing service allows configuring billing plans and billing merchants and other partners according to their subscriptions.
The key product components include:
- Payments API
- Settlement service
- Payment gateway
- Virtual payment terminal
- Product catalog
- Payment processor integration framework
- Billing service.
Goals and objectives
- Update the Payment Processing Service to a PayFac Model: Streamline the merchant onboarding process, allowing for quicker and more efficient sub-merchant approvals. Implement enhanced risk management strategies to monitor and mitigate potential fraud or compliance issues.
- Implement a UI Part of a Payment Gateway That Can Be Embedded into Existing Checkout Pages by Merchants: Develop an embeddable, highly customizable, user interface component for a client’s payment gateway with advanced security features such as SSL encryption, tokenization, and fraud detection.
- Continuous L3 Support of a Payment Processing Service, Payment Gateway, and API Service: Assemble a dedicated team of specialists to handle complex issues and escalations to provide ongoing Level 3 technical support, including implementing proactive monitoring tools to detect and resolve issues before they impact users.
- Update the Billing Service to Support New Types of Billing Plans and New Types of Users: Enhance the billing service to accommodate new business demands, supporting various billing models, such as subscription, usage-based, and tiered pricing.
- Integration and Certification with a New Strategic Third-Party Payment Processor, Adyen: Utilize Adyen’s APIs to enable seamless transaction processing across multiple payment methods, completing necessary certifications to comply with Adyen’s security and operational standards.
- Upgrade the Settlement System to Handle High Traffic: Enhance the settlement system to efficiently process increased transaction volumes, including conducting performance optimization, and optimizing algorithms and database queries to minimize latency.
- Allow Customers to Save the Card and Use It for Future Purchases: Enable customers to store their payment details for future transactions by using tokenization to securely store payment details without retaining sensitive card information.
- Support of Surcharge Fees: Implement the ability to apply surcharge fees for transactions, ensuring compliance with local regulations. Provide a way for these fees to be communicated to customers during the checkout process to avoid confusion.
- Optimization of Transaction Fees to Increase Revenue: Work on ways to reduce transaction fees to maximize the profitability of the business. Implement intelligent routing to secure the most cost-effective payment network for each transaction.
- Several Upgrades and Certifications of Elavon Integration According to New Specifications: Meet new specifications and certifications by updating systems to comply with the latest Elavon requirements.
- Bi-Directional Sync of Data Between Internal Core Systems: Define data mappings and transformations to ensure accurate synchronization of relevant data fields, including the implementation of real-time data sync to ensure that changes in one system are immediately reflected in the other.
- Integration with Several Digital Wallets, Including Apple Pay and Google Pay: Expand payment options by integrating with several popular digital wallets and comply with security standards and guidelines set by each provider.
Project challenge
- Adyen is Not Compatible with Existing Architecture: find a way to implement Adyen’s payment processing system, since it is built on an event-driven architecture, which is not aligned with the existing settlement system.
- PayFac Model Not Fitting into Existing Architecture: redesign the existing system to handle sophisticated hierarchical relationships and the associated data structures to fully embrace the power of the PayFac model.
Solution
To implement this project, we assembled a versatile team of 10 experts, including:
- Engineering Manager
- Product Manager
- 7 Back-End Developers
- Front-End Developer.
Our work on this project began with a complete redesign of the internal architecture of the settlement service to support the settlement of PayFac transactions. This redesign involved reimagining how transactions were processed and settled within the system, allowing it to match the unique requirements and complexities of the PayFac model.
In addition to the settlement service, the plans and subscriptions system was completely overhauled to support more flexible billing plans. This redesign enabled the system to offer entirely new billing models including subscription-based pricing, usage-based charges, and tiered plans.
The work of our Front-End Developer truly shined when a new user interface component for the payment gateway was developed as a React application. This UI part can now be embedded into any web page, allowing merchants to collect card data for processing payments seamlessly. The payment processors integration module was redesigned as well, to improve its functionality and compatibility with various payment processors.
To ensure the robustness and reliability of the system, a new regression testing framework was built by our team. This framework was designed to automate the testing process, allowing for comprehensive testing of new features and updates.
Finally, the infrastructure for bidirectional synchronization of data between several internal systems was established. This infrastructure allowed data to flow seamlessly between different systems, ensuring that changes in one system were accurately reflected in others in real-time.
Tech Stack
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Java -
React -
Amazon AWS -
AWS ECS -
AWS S3
Our results
We successfully delivered the initial scope of the project according to client expectations and continue to deliver outstanding results in this lasting partnership.
- Becoming a Payment Facilitator: we helped the client to successfully become a payment facilitator, enabling the consolidation of the payment process, providing merchants with a unified platform with improved transaction management, and a faster onboarding process.
- The Client Was Acquired by a Global Company: our involvement led to a major acquisition of our client and the launching of a business-critical payment product, as we remained partners and joined the new owners.
- Enhanced Service Offerings: the client was able to introduce a second main payment processor to serve as a PayFac for merchants, significantly expanding customer experience.
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