Fenige - the specialist in international remittances and payment innovations

Accepting online payments is a core pillar of Fenige's business. Strong foundations and independent, continuous development of technology as well as effective search for niche markets allow the company to look into the future with optimism.

What does Fenige make money on?

Marcin Chruściel: Fenige has a national payment institution license, granted by the Polish Financial Supervision Authority, and generally speaking, it deals with acquiring, i.e. in simple terms, the acceptance of payments on the Internet. This means that it earns money from processing payment transactions - such as: payment acceptance (e-commerce), money transfers from card to card (P2P), payouts to cards and transaction processing services. Thanks to the fact that Fenige is a licensed entity, we have the ability to process transactions from Visa and Mastercard, which today account for almost 95 percent of the entire market, especially Polish and European.

Why is your service competitive in the tight market of similar services?

Marcin Chruściel: First of all, Fenige operates on the market of broadly understood online payments. There is a lot of competition in this market, which is why our company decided to go its own way and find niches and areas of the market that are not yet heavily developed and developed, where it is still possible to build new business models, generate margins and profitability. There is a company behind every online shopping and card payment. In general, this is the most common and well-known payment scheme, i.e. the ability to pay by card, blik or some other form of payment in an online store. The market of broadly understood online payments today allows for much more than just ordinary shopping, and that is why we at Fenige are looking very closely at new trends and new business areas, within which we are trying to find the application of these payments to new business models. And so, a few years ago, as Fenige, we were the precursor of our proprietary solution of card-to-card money transfers, made available to our business customers, but we also showed this solution on our proprietary website available at Send4.me. 

We are constantly moving in the online environment and on a very large market of international transfers, and in the field of such transfers, where funds go outside the country - various payment models are used. Importantly, until now, such a cross-border transaction (between banks) has been burdened with high costs, as well as a long time of such a transfer. The further out of Europe, the time of such a transaction took up to several days, and the cost reached several percent of such a transaction. Our solution allowed the transfer to be practically instant and much cheaper than traditional foreign transfers. Anyone - regardless of where they are located or on which continent - can use our solutions offered by our business customers or enter the Send4.me and instantly (in 30 seconds) transfer funds from card to card.

For what type of customers is this the most desirable service?

Marcin Chruściel: The entire cross-border remittance market is very large. Currently, it is largely related to economic migration, which is developing very dynamically - we can see this in the transactions of transferring funds from card to card. For example, someone works in Warsaw, in Dubai in a moment, and in Nigeria in a few days, i.e. they are a contract worker - and this is our solution for such a client. The intensification of card-to-card transactions is also related to the war in Ukraine - many residents of Ukraine have appeared in Poland and other European countries. A lot of people who are here, have their friends or family there and they have to transfer funds between them in some way. Our card solutions make it easy to transfer this money through our clients' services. Such solutions of card-to-card transfers in the closed payment ecosystems of Visa and Mastercard, especially in Ukraine, are quite well known, which certainly makes it easier for users to use them. The traditional banking model of transferring funds is not enough today. We observe that all traditional banking models, long-lasting and quite expensive, which were used to transfer pools of funds in cross-border traffic, such as SWIFT, are now being replaced by the models that we create as FENIGE. We see more and more interest in these models among our customers. We have many business partners who use our solution – and these are diverse models depending on our partner's business strategy, because our solution is universal. Let's take the PL-UK direction, for example. The old, traditional banking model no longer works efficiently here, and there are still many Poles there, which means that economic migration again shapes the demand for new, more efficient solutions that we can provide. 

In general, we operate in the out of the box thinking model. We are focused on broader models than just local ones, even though we are a Polish company with Polish roots. Although in Poland we can imagine that we are, for example, a supplement to transfers from, for example, BLIK to BLIK. For now, not everyone has BLIK, but everyone has payment cards and everyone is able to use our solution and transfer money in 30 seconds - without limits. Looking at it this way, we are looking for technology and a way to improve it in terms of the daily needs of individual customers, and finally business partners who implement these business models through our solutions. We also offer traditional e-commerce, but solutions for this sector do not account for even 10 percent of our entire business.

We are strongly focusing on card-to-card transfers and the second large business model, for which we see a wide application, which are "card" transfers, e.g. withdrawal from a wallet in a store or shopping platform, or "from a card to somewhere", i.e. no longer between cards, but e.g. to a wallet, to a game, to which we want to top up funds, in any available currency. Therefore, we are looking for and making available this solution for use in new business models, e.g. refunds to a card in online stores - for example, I buy something "online", I want to return it, and the money returns to my card almost immediately. Without filling out long return forms, entering the account number, and above all, without waiting a few days for the refund to appear on the account. Such payment solutions solve various problems for merchants and their customers. Thanks to them, the business model of a given store is improved, the customer experience in the store is improved, and we are a supplier of part of the technology that streamlines the settlements of our customers (B2B) with their customers (B2C) - saves time and allows for the convenience and efficiency of purchases and returns. We see a lot of such models and applications of the prepaid transfer solution and the constantly growing demand from our customers.

You said that over 80 percent of all transactions are foreign transactions. What regions or countries do you cover or where do you plan to expand?

Marcin Chruściel: As we have already mentioned, the Polish market is crowded, there is a lot of competition dealing with traditional acceptance of payments in an online store. The result of high competition is price pressure, followed by weaker margins. So we don't want to push ourselves into a crowded market, but we try to look for "blue bays in the ocean", i.e. places where the technology we offer can be used, but in a new edition. As I said - transfers from card to card, withdrawals to card, transfers back to card, and the use of all these payment solutions known for many years we want to offer for new business models. 

What markets do we consider outside Poland? We have a Polish license, under which we can move in the European Union. Which does not mean that we do not look at other foreign markets. Operating outside the EU, of course, involves licensing given payment schemes, which we will probably have to do, or joining some schemes outside the EU. And we are analyzing such solutions to make current payment transactions even more widely available. Today, our clients, our merchants with whom we work, are Poland (as we said, a tight market, settled in zlotys), a strongly European area that our license allows, but also our customers have their individual customers outside the EU, to whom funds can be transferred. The basis of our functioning is the country in which a given merchant has a registered business. And it is important for us that it is in the EU. For example, our customer registered in Germany has his customers outside the EU - such as in the United States or Nigeria, and in such a situation there are no borders for us - as is already the case today in the everyday reality on the Polish market - after all, a customer from the USA can shop in a Polish e-commerce store with his card. Because we are moving in VISA or Mastercard licenses, which say that "a card is a card", it doesn't matter whether it's Polish or Japanese. Of course, there are some restrictions, rules and limits, but in general, we can pay with such a card in the same amount all over the world. This is how we operate, that we try to develop payments that allow us to implement business models without limits.

Last year, you managed to process transactions worth nearly PLN 2.5 billion. What growth do you plan for this year?

Marcin Chruściel: Let me come back to the fact that while in this crowded market it will be very difficult to conquer it, and growth even at the level of 10 percent would be a great effort, in new business models and in the market in which we operate, today we can see, and years of experience, that growth of several dozen percent year-on-year in the past led us to a scale of nearly PLN 2.5 billion,  That is over half a billion euros in turnover, and these are already very substantial amounts that we process. We have the premise of long-term business development. Dynamic growth is planned and we have an idea how to achieve them, not only by acquiring new customers and expanding cooperation with existing ones on the basis of existing payment methods, because alternative methods are also developing and we want to incorporate them. Not only card payments will be the foundation of our development. We believe in alternative payment methods, the possible use of payments as part of openbanking, we want to slightly limit the usability of BLIK, i.e. enable transfers from BLIK to the card, but also limitlessly. We strongly believe in the development of blockchain technology. So we see a lot of growth drivers. Of course, not all of them can be "fired" at the same time, you need the right time for each project. In addition, if we are talking about, for example, blockchain technology, we also need more legal regulations to operate on regulated ground and be able to scale this business. We want to be ready here with technology as well. 

In which direction will the payments market develop?

Marcin Chruściel: It all depends on what area we have in mind. If we talk about our daily experiences, about what we do at Fenige, we move a bit around an alternative world, which is a derivative of the needs of large groups of customers and business niches (the so-called "blue bays"). If, on the other hand, we are talking about the world of classic consumers and their everyday purchases, for which we use traditional payment cards, I am deeply convinced that we will continue to replace traditional plastic with a virtual form. Currently, the most popular and convenient form of payment is simply by phone. Payment technologies will continue to develop, they will support our daily lives and will blend in with them, improving our lives "in the background". When, for example, today we drive an Uber or watch Netflix, the payment is "somewhere out there", as if outside of us, in the background, it will be similar with ordering coffee or buying something online. I believe in such solutions in the e-commerce world, so that we have a unified, secure payment method that allows us to enjoy shopping, not paying. I think that we are heading for this digital form of our piece of plastic, that it will become more and more digitized, it will be less and less visible. 

How did Fenige come into being? How did you end up in the company? And how do you see your story in it?

Marcin Chruściel: Years ago, we came up with the idea of creating a company that would produce payment technologies and tools that would not necessarily compete with the everyday online payment market. This is how the "card-to-card" transfer solution was created, further developing the technology and looking for niches, the company became a licensed and regulated entity with an increasing scale of operation. For this purpose, the company received a license from Visa and Mastercard, as well as a license from a national payment institution. Thanks to this, today we stand on very strong foundations, because we have a proprietary system for processing transactions, of course meeting all the requirements of both security and payment organizations. We are constantly developing and improving it, because our knowledge and experience allow it. We are not dependent on external suppliers. Strong foundations allow us to look positively into the future of the company.

What kind of manager are you?

Marcin Chruściel: I am definitely close to people, I am taught hands-on management. I always try to understand the idea thoroughly before we start implementing it, but also when there is a challenge - I always look for where the cause is. I like it when projects develop quickly and innovatively, but also wisely, in a thoughtful way. I spend a lot of time with employees in order to get to know each other better and understand each other. This builds the closeness of the relationship, which in turn pays off with ease of communication and building awareness that we are one team and we must cultivate the spirit of team work - everyone has their role and scope of responsibility in it, and the team's victory is the commitment and success of each individual. A bit like in a football team. 

How do you keep your team motivated?

Marcin Chruściel: I think that it is primarily the atmosphere - resulting partly from the selection of people who understand this type of approach, support cooperation based on openness, and partly from the developed organizational culture to which everyone entering our organization adapts, and - what is equally important - very interesting challenges and the creation of modern payment solutions.

What is the biggest motivator for you?

Marcin Chruściel: I am motivated by building, creating, inventing. I am constantly wondering what can still be changed, improved, mostly in the long run. There is a saying that we overestimate what we can do in a year, and we underestimate what we can do in 5 years, because we simply don't think about it enough. It is also important for me to find my own place, which I also encourage my employees to do, so that they see themselves in 5-10 years, so that they know what they want to do next in Fenige and where the company can be at that time. I try to look at long-term trends and development directions. I am also aware of the constant changeability, the need for ongoing improvement or adaptation to the changing environment, but I am of the opinion that you should always consider a long-term perspective. 

How do you rest from work?

Marcin Chruściel: My hobby is unusual for a guy, because I like cooking, it calms me down and I really feel good at it and I test myself. I explore the secrets of meditation a bit. I also enjoy dealing with plants, with a particular focus on jarred forests and bonsai tree farming. I have a few handmade rings and shaped trees. I tried to learn the beautiful art of growing and shaping bonsai at a course with the only certified bonsai breeding trainer in Poland. Growing these trees has - in my opinion - a lot to do with the approach to business. You need to have a vision of what the plant will look like in 5-10 years, but also how it will be shaped over these years. It is similar in business - you need to be able to see long trends, but also understand how they will be affected by current projects and circumstances. I see a very clear analogy between business and this passion. 

The greatest business lessons you have received in your career and thanks to which you not only have broader competences, but also a view of business?

Marcin Chruściel: I have a few business lessons that allow me to know that professional failure is not a personal failure, but the basis for drawing conclusions and learning. The more difficult these lessons are, the stronger we come out of them. Over the course of more than 20 years, I have had some such situations and as a young manager I was very concerned about them. Today I know that it is a matter of skillfully understanding difficult moments in the company, staying calm and taking responsibility for a difficulty or problem.  

What - in your opinion - should the cooperation between a company and a fund look like in an ideal model?

Marcin Chruściel: We have the opportunity to work with you (WP2 Investments) and other different funds. Each such partner is different, has its own distinct features, style of cooperation and expectations. Something that I really see as positive in the approach on your part is the willingness to help without being overly involved in regular meetings, reporting, etc. When we have a problem, we can simply call without unnecessary formalities. The recent discussion about European funds is an example of how a fund can help portfolio companies. You will see what is on the market, what can support companies and ask if we want to take advantage of such opportunities. 

Thank you:)

Interviewer: Ewa Pysiewicz, April 2023