Behind the idea: Brite Payments
The global payments market has undergone a huge transformation in recent years with payment options continuing to evolve to meet consumer and regional demand.
Demand for account-to-account payments accelerated through 2022. Unlike cards, which require a significant infrastructure to support them, A2A payments only need internet access and a bank account.
One of the leaders in A2A payments is Brite payments, a second-generation fintech based in Stockholm. Instant payment provider leverages open banking technology to process A2A payments in real time between consumers and online stores.
Founded in 2019, Brite Payments now operates across 21 markets in Europe and is connected to more than 3,800 banks in the EU.
To find out more about the evolution of Brite Payments – as well as its plans for 2023 after a year of hyper growth – we caught up with the CEO and co-founder Lena Hackelöer.
Tell us more about your company and its offer?
My name is Lena Hackelöer and I am the founder and CEO of Brite Payments, a Stockholm-based fintech company offering account-to-account (A2A) payment processing and merchant services across Europe. I founded Brite Payments in 2019, after a decade working in the financial technology industry for companies like Klarna and Qliro.
That put me in the perfect position to launch Brite, an instant payment provider that leverages the open banking framework to process A2A payments between consumers and online retailers in real time. With Brite, consumers can authenticate with top-of-mind details using their bank’s standard identification method, eliminating the need for account registrations or credit card details.
The convenience has proven to be a big hit with merchants and end users and has generated a number of benefits. Since launch, we have expanded to offer our solutions in 21 markets in Europe and are connected to more than 3,800 banks within the European Union (EU). We also work with some of the sector’s biggest brands, including SOFORT. We are now embarking on a phase of continued expansion and expect both of these numbers to grow further in the near future.
What problem was your company set up to solve?
The payments sector has evolved significantly recently, but it remains plagued by inefficiencies – including how merchants implement new payment options for their customers. I wanted to bring it up with Brite. Our team has managed to achieve this with our instant bank payment solution, which most importantly covers payments to merchants, as well as payments to consumers.
We have harnessed the power of open bank-based A2A payment methods, and created intuitive and simple solutions that simplify the payment process. With Brite, users can make payments without having to fill out cumbersome registration forms or create multiple passwords. All a consumer needs is the top-of-mind information required to log into their banking app.
Brite is also spearheading the emergence of open bank-driven recurring payment products across Europe. Again, this has been a direct response to growing customer demand for innovative, automated payment methods that tackle some of the problems associated with traditional recurring payment methods, such as card-based subscriptions. By reducing some of the main causes of payment failure, we help merchants reduce customer churn and ensure that consumers never accidentally lose access to the services they love.
How has your business evolved since launch?
When we first launched our product in 2020, we only covered a handful of markets. Since then, we have grown to become a pan-European player, offering payments and withdrawals across 21 markets, with additional markets due to launch this spring. A growing number of merchants are appreciating the benefits of our solutions, which in turn means we are rapidly increasing the number of consumers paying with Brite.
In 2021, we more than doubled the transaction volumes on our platform, giving us a breakthrough year in 2022. This is confirmation that we are indeed solving a big problem for both sellers and consumers. In 2023, we will continue to focus on delivering better user experiences and reducing customer churn for sellers.
“It is our ambition to be at the forefront of the movement for instant bank payments”
What has been the biggest challenge or the most “tough moment” to overcome?
One of the biggest challenges we face as a business is around changing regulations within the payment sector, and the lack of adaptation between different regulators in Europe. Staying on top of regulatory changes across Europe is difficult, and often time- and cost-consuming. That’s why we’ve worked to incorporate this into our business from day one, ensuring we always have the time and resources required to maintain them.
Cultivating good relationships with the banks in our extensive network has also been of great help in this work. Now, if changes are made to regulations or relevant standards, we can work hand in hand with leading financial institutions to ensure they are properly implemented and strictly enforced. All of this puts us in the optimal position to respond more effectively to an ever-evolving regulatory landscape.
What are your biggest achievements or “proudest moments” so far?
I’m happy to say that there are many to choose from, and many of them are happening during 2022. From doubling transaction volumes to several significant growth milestones, it’s been a year to remember. In fact, as we enter 2023, I’m happy to say that we now rank as one of Sweden’s fastest growing fintech companies, which in itself makes me very proud.
A highlight has been the launch of our innovative ‘Single Sign’ solution, which hit the market in 2022. It allows customers to pay directly from their bank account with just one authentication step, where possible. In essence, the service represents the open banking equivalent of one-click payments. As such, it represents a new era in instant bank payments, the solution proven to help users pay up to 40% faster than standard A2A payment flows.
I am also very proud of the commercial partnerships we have formed, including our collaboration with the popular online banking payment method, SOFORT, to launch a pan-European instant payout solution. This unique partnership will bring greater speed and convenience to over 80 million SOFORT users in Europe’s largest markets, enabling them to make truly instant payments.
How would you describe the culture in your company?
We may be a young company, but we have managed to bring in many people with deep experience in fintech and very well-rounded profiles, and I think that is reflected in the work culture at Brite. We strive for excellence as a team, which has helped us achieve some amazing results in a relatively short space of time. Building a culture like this undoubtedly attracts others of a similar ilk, which is why I believe we’ve been able to attract some high-profile fintech experts into our ranks since launch.
Whether it is the appointment of Lisa Edstrom, former chief compliance officer at Zettle by PayPal, as our new compliance director, or our welcome of Jan Plasberg, former CTO for SO QUICKLY and VP engineering at Klarna to our board, I think it’s clear that Brite Payments is a business that people want to be a part of. It’s a great source of pride for me and assures me that we will maintain our momentum as we continue to scale.
What is in store for the future?
This industry is constantly evolving, and new developments are always emerging. Our goal is to continue to establish local businesses across Europe and further expand the capabilities of our products for individual merchants and consumers, bringing much-needed connectivity and convenience to even more geographies and currencies.
It is our ambition to be at the forefront of the instant banking movement, leading the development of digital payments and money transfer solutions that positively impact the way people manage their money and make payments. At the heart of this drive is our commitment to making these areas of everyday life more practical, while remaining safe and secure.
