Issue link: https://read.uberflip.com/i/1210266
In 2013, the U Group had 1,500 outlets, which were generating 360 million card transactions per year, with each outlet negotiating independently with its own local banks. As such, 81 percent of card flows were distributed across four major banks. U Group observed that banking commissions were not being optimized whatsoever. Furthermore, European regulations on Payment institutions (PSD1) had been relaxed since 2011. Taking all this into account, U Group decided to structure its financial flows and actively manage its relationships with banks. But it needed help to do so. U Etablissement de Paiement (U EP) sought the backing of recognized and solid partners with experience in card payments. And so, U EP established partnerships with Monext, IT cards solution provider; Crédit Mutuel Arkea, leading bank; and SAB, a Sopra Banking Software company, that took charge of banking IT. Collectively, the three partners helped U Group to achieve an ambitious digital and payments project that went above and beyond all expectations U Group wanted to create a payments institution where its stores would be the customer. To do so, it needed an IT tool enabling the management of card payment flows for local and remote sales, as well as PROJECT IN A NUTSHELL KEY FACTS ABOUT U GROUP • Fourth largest general food retail group in France • 1,568 outlets across France, including overseas departments and territories • Revenues of 19 billion euros (excluding fuel) PROBLEM: U group wanted to create a payments institution where customers were the stores. To do so, it needed an IT tool enabling the management of card payment flows for local and remote sales, as well as SEPA transfer/direct debit flows. SOLUTION: SAB AT in SaaS mode DURATION: 15 months "After conducting market analysis, we concluded that SAB fully addresses our requirements. The SaaS model is a key factor in U EP's success." CEO at U Etablissement de Paiement