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NewTech Friday: Torus – optimizing card scheme fees 04 February 2022 150

Kirill Lisitsyn is the Founder and CEO at Torus. He spoke with Efma’s Boris Plantier about his company’s novel card fee solution that can save banks a lot of money. 

What led to the creation of Torus?

My co-founder, Igor Volkov, and I used to work for over 10 years for a variety of payment market players, including leading a Russian bank and a global high-street card scheme. We realized that banks and payment service providers generally are not very strong in granularly understanding their costs on card schemes fees as well as keeping them at an optimal level, especially considering the fact that card schemes’ rules and tariffs are changed quite often. 

Our early research demonstrated that banks may end up overpaying up to 20% of their card schemes fees, which in turn may be up to 15% of a bank’s operating costs depending on its business model.

So, we decided to create a product which will address this problem, will be very easy to use for the customers, and at the same time can be very scalable geographically.

By decreasing these inefficiencies in the cashless payments market we can minimize the friction in the market and bring it to more optimal levels of maturity.

Could you present Torus's offer?

We offer a predictive analytics product which helps banks and payment service providers to manage their costs on cards schemes fees and optimize them by up to 20%.

We at Torus believe that the payments market has a lot of inefficiencies caused by card schemes as rules-setting players and that banks and payment service providers could benefit from decreasing these inefficiencies.

Utilizing the data already available on our customers, Torus provides a cloud-based plug & play solution, which enables them to: 

(1) analyze their costs spent on card schemes fees in a more granular and simple way;

(2) reconcile and forecast these costs;

(3) unleash the potential for optimization. 

And our dedicated recommendation engine provides exact actions on how to realize this potential.

We charge our customers a quarterly subscription fee as well as a success fee based on the costs they actually save by using the Torus solution.

What's coming next for Torus?

So far we have paying customers in Russia and Kazakhstan and leads from Europe, Southeast Asia, and Latin America. Our short-term plans are to increase our customer base in Europe and Asia, prioritize target markets based on the feasibility test outcomes, and then scale into them. We are also now heavily focused on expanding our set of partnerships to promote and support our product in various geographies. A few exciting announcements will come in Q1 2022.

Product-wise we will be rolling out a self-service version of the product soon, which will allow our customers to start using the Torus solution in 10 minutes instead of 1-2 weeks, which the onboarding process currently requires.

And our long-term vision is that Torus will become a tool to support payment market players in optimizing their performance by providing their customer segments with an optimal set of payments products.

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Keywords

Big data Card Fintech

Geography

Cyprus

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