In November 2017, Avarda became a fully owned subsidiary of TF Bank. Roughly a year later, the business has made strong progress and is in the midst of rolling out next-generation payment and checkout solutions for online retailers in the Nordics. Mikael Johansson, CEO of Avarda and head of TF Bank’s Ecommerce Solutions segment, describes the work that has been carried out and the ambitions ahead:
“Over the past years, we have made large investments in technology with the aim of creating the best payment solution for online retailers who want to build their own brands throughout the value chain. With our Checkout+ solution, which we started to roll out in the beginning of 2018, we believe we have succeeded. The customer reactions have been very positive and we have quickly gained significant volumes.”
Checkout+ is a complete white label checkout and payment solution for online retailers. It also includes CRM functionality where the retailer can expose offers to the consumer in connection with the purchase as well as other features.
“It is a clear trend that consumers spend less time in the store. First, you search for the best price using a comparison service, and when you are done shopping you are sent to an external payment solution, which is followed up by invoices from the payment service provider rather than the store. We want to be the online retailer’s best friend and take back the time spent in the store. With our solution, the consumers’ exposure to the online retailer’s brand as well as the opportunities for add-on sales increase significantly compared to other solutions.”
Avarda has a growing customer portfolio and currently serves online retailers in Sweden and Finland, and is also preparing to enter Norway. Bubbleroom, EM, Vianor and the Finnish online store Hobby Hall are some of its customers.
“We have built the solution to be able to cater for large volumes. We are currently working on migrating existing customers to Checkout+, while also intensifying the sales efforts towards new customers in all our markets.”
Avarda is part of TF Bank’s Ecommerce Solutions segment, which has exhibited strong growth and positive earnings during the year.
“In this type of business, you must have a long-term perspective and build volumes until you reach economies of scale and cost coverage. We are currently experiencing a strong growth momentum which is reflected in that the segment shows positive earnings. Ecommerce solutions is a great add-on to TF Bank’s core business, it gives the group a new and exciting dimension. With the positive response we have received for Checkout+ and other efforts that are being made in the area, like the credit card offering via BB Bank in Norway, we have good possibilities to continue our growth going forward.”