The fast-paced fintech world calls for strong partnerships to provide smooth and efficient payment solutions. This case study explores the strategic partnership between PAYSTRAX, an expert card acquirer, and CatalystPay, an innovative payment service provider (PSP) – and what it shows about the value of sustainable relationships between a PSP and an acquirer.
Market Overview
PAYSTRAX’s business model is based on strategic partnerships and internal technological innovation, integrating core IT infrastructure with third-party solutions to ensure operational efficiency and scalability. This approach enables PAYSTRAX to deliver competitive pricing, exceptional customer support, and adapt to the specific needs of local markets through its extensive partner network.
CatalystPay adopted a multi-acquirer approach to provide flexible and competitive payment solutions, focusing on personalised customer service that meets the unique needs of every merchant. Backed by trusted acquirers like PAYSTRAX, this approach allows CatalystPay to deliver efficient, reliable, and secure payment processing services.
The partnership is synergetic for both companies:
✓ PAYSTRAX provides robust card acquiring services, leveraging cloud-based technology for efficient processing
✓ CatalystPay offers a diverse range of payment solutions, including card processing and alternative payment methods, tailored to the specific needs of digital businesses
Challenge
Launching a new card acquiring company posed several challenges for PAYSTRAX, particularly in building a trusted partner network and gaining merchant trust as a new market player. The strategic partnership with CatalystPay proved crucial in overcoming these obstacles, enabling PAYSTRAX to begin offering acquiring services and achieve significant growth. CatalystPay’s expertise in dealing with diverse merchant needs helped both companies cater to a wide range of verticals, including hospitality, retail, gaming/gambling, forex, and others.
Results
The partnership between PAYSTRAX and CatalystPay has brought significant benefits to merchants, including faster settlements, competitive pricing, and improved acceptance rates. CatalystPay’s merchants using PAYSTRAX saw a tenfold increase in processing volume from 2022 to 2023. Additionally, merchants further improved their acceptance rates by routing declined transactions through PAYSTRAX via CatalystPay, highlighting the partnership’s effectiveness in boosting transaction success rates.
Execution
The success of this partnership is attributed to the collaborative and customer-focused approaches of both companies. PAYSTRAX’s strategic decision to outsource key payment gateway infrastructures and work through partner networks within the first 5 months of operation has proven effective. Alongside CatalystPay’s multi-acquirer approach and customer-oriented solutions, both companies deliver seamless operations from onboarding through all stages of payment processing – ensuring the highest security standards, fraud prevention policies, and additional features such as risk management, exceptional customer support, and data intelligence.
In conclusion, these companies enjoy working together to improve customer experience and enhance service quality. Meeting the growing demand for efficient, secure payment solutions in the UK and EU markets, PAYSTRAX and CatalystPay have combined their expertise to offer merchants exactly that.
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