Scalapay is an innovative fintech that offers European retail customers the chance to pay for purchases in 3 or 4 interest-free installments. This buy-now-pay-later offering is available at over 7,000 physical stores and over 5,000 e-commerce stores.

Because Scalapay offers a seamless purchasing experience for customers, Scalapay offers significant value to their retail partners. Scalapay leads to a 48% increase in the average order value, an increase in cart conversion, and a decrease in cart abandonment rate. Over a period of three months, 65% of customers who used Scalapay to complete a purchase at a specific retailer will return to that retailer.

This value incentivizes retailers to offer Scalapay to their customers. In turn, the commission retailers pay enables Scalapay to offer their service at no cost to the end-customer.

As Scalapay scaled to more retailers and customers across Europe, the team realized that being locked into a single payment processor was no longer operationally effective or cost-effective. Payment processors can become very expensive as the number of transactions grows, often forcing the company to accept tighter margins on every sale. Predicting this challenge early on, the team at Scalapay had already started building a proxy so that they could eventually migrate their customer PCI data from the original processor.

Before committing to Skyflow, Scalapay scoped out what it would take to build a PCI-compliant privacy solution internally. They estimated it would require three engineers – new engineers with specific expertise – between six and twelve months to build the basics, and at least two engineers to maintain the solution ongoing.

Beyond hiring and talent costs, Scalapay would also need to bring on external consultants for compliance advice and oversight. Layering expense estimates plus the significant delay to time to market made the overall cost of building a solution steep.

Skyflow enabled a flexible, PCI-compliant payment processing solution for Scalapay. The comprehensive, privacy-first approach was easy for their team to implement, allowing them to focus resources back on their core product.