Albert Genau Success Story | Paynet: Payment Systems and Dealer Network Solutions

While Albert Genau increased its collection rate with the infrastructure support we provided, it also experienced a significant increase in revenue as a result of more dealers and more dealer collection tools.

We in Paynet started in the early 2000s with the idea of 'credit card collection in the dealer channel'. Today, we are a central bank-licensed financial technology company that digitalises the financial processes of more than 20,000 businesses in various sectors.

With the solutions we offer at Paynet, we respond to the payment needs of businesses and make it easier for them to generate revenue. Let's explore together how our financial solutions can benefit businesses.

Albert Genau and Paynet;

Işıldak A.Ş., with 37 years of commercial history, makes and sells glass balcony systems under the Albert Genau trademark. One of the largest manufacturers in its field, Albert Genau exports its products to 62 countries.

Albert Genau, like many companies in its sector, uses a multi-level distribution channel organisation with professional dealer and sub-dealer structures to deliver its products and services to the end user.

The flow of products and services between the end user and the manufacturer creates the need for a reverse payment and collection system.

Before meeting us, Albert Genau was looking for an answer to the question of how it could implement this regular product-payment flow between its dealers as simply and smoothly as possible.

When end users wanted to purchase Albert Genau products and services, they mainly preferred to pay by credit card. Based on this information, Albert Genau began researching the topic, focusing on card payment systems. Albert Genau describes the process as follows:

After our research, we looked at some solutions that we thought would be suitable for our structure, but we came to the conclusion that credit card payments, which have no infrastructure in the market and are made regardless of their financial outcomes, did not appeal to us. In meetings with many banks, they stated that they would immediately install POS devices with our merchants. However, we realised that the link between the dealer's customer and our company could not be financially resolved in the collections to be made using the POS service. As we do not sell directly to the end user, we looked for a system that would be ideal for the quartet of 'bank - main company - dealer - end user' and came across Paynet.

A system in which the flow of bank, main company, dealer, and end user is correctly structured

We at Paynet offer solutions for card payment needs, especially for business models with multiple layers such as dealers, sub-dealers, distributors, and main companies.

Albert Genau noted that the legal responsibilities of the 'bank - main company - dealer - end user' quartet that the company needs are correctly set up in Paynet's infrastructure in all respects.

The payment portal developed by Paynet, Paylink, which eliminates physical dependency by enabling remote collection, and the Paynet MobilePOS product, which is used extensively by field teams because it supports mobility, have allowed Albert Genau to digitalise its entire business model by meeting many of its needs from a single source.

Albert Genau describes the digitalisation process as follows:

After the agreement we made with Paynet, we were able to make instalment payments to all credit card programs in one day with a single contract. We helped our dealers sell products with long payment terms. By responding immediately to all the card brands and instalment payment options requested by end-users at our dealers, we increased sales and collection speed. We reduced the risk to the dealer and the end user paying the dealer.

How did Paynet digitalise Albert Genau's financial operations?

According to Albert Genau, before Paynet, there was a business model between Albert Genau and its dealers that used traditional collection systems such as cheques, bonds and letters of guarantee. In that business model, the dealers also used POS devices (under different terms and conditions depending on the size of each dealer) as a result of agreements they made with banks independently of Albert Genau.

Albert Genau explains that 'running this structure independently should be managed within the same channel because it is very costly and extremely inefficient and leads to a waste of labour/time:

With Paynet, we brought the entire Albert Genau ecosystem under one roof, avoiding the negative aspects of this inefficient model, and started to benefit from the economies of scale of the economic activity under our brand. Our dealers can benefit from the scale of Albert Genau, rather than having to make individual arrangements with each bank.
We have made significant progress in creating new dealerships in the long term, enabling our dealers to make sales with long instalment plans, reducing the commercial risks to our dealers, and creating a wide range of options for the end user with all bank cards.

Paynet share of total sales reaches 41.40% in 2020

Albert Genau launched the Paynet system on June 23, 2017, and by the end of 2017, 41 dealers had joined the system. With the campaigns and support packages that the company provides to its dealers, 262 dealers participated in the Paynet system by the end of the third quarter of 2020. The company describes Paynet's financial contribution to Albert Genau as follows:

Although there were question marks at the beginning about what could be done in terms of sales, we believe that the fact that we made 32.80% of our domestic sales in 2019 and 41.40% by the end of the third quarter of 2020 is an indicator that the cooperation between Paynet and Albert Genau is on track.

In short, while Paynet's share of total sales was 32.80 percent in 2019, we can say that this share increased to 41.40 percent in 2020. Knowing that the increase in the collection rate with the infrastructure support we provide to Albert Genau, the granting of more dealerships, and the increase in dealers' collection instruments have benefited the company in general reminds us once again of the importance of our work.

It should also be noted that Albert Genau's business volume has also increased significantly in parallel with the increase in the number of dealers:

We believe that with Paynet's solution for our international sales, this positive development will increase further because as our company exports to around 62 countries abroad.

Onur Ertürk, CSO of Paynet, comments: 'We regard every company we provide solutions to as a business partner, not a client. This perspective also shapes our service policy. We try to understand our merchants' business models and financial dynamics and work as part of the same team to digitalise their lives and add value. We have served the Albert Genau brand with this perspective for many years. We listen to each other, understand our business models, and know our capabilities very well. We are very happy to see the positive impact of this perspective on the business results of our member merchants.

5 minutes 16/01/2024