Payment Optimization and FinTech Business Development for a Fuel Station Network

More about case study Payment Optimization and FinTech Business Development for a Fuel Station Network

Project Background

Cashless payments in retail involve much more than the transaction fees charged by payment terminal providers. The actual cost and profitability of payment acceptance also depend on additional charges, settlement arrangements, currency conversion, Dynamic Currency Conversion (DCC), available payment methods, and operational processes.

At the same time, payment infrastructure can become a source of additional revenue and new business opportunities. Well-designed financial services, loyalty solutions, and alternative payment models can help businesses not only reduce costs but also increase the value of their customer relationships.

With this approach, z3x began working with a company operating a network of fuel stations in western Poland. The project went beyond a traditional payment terminal cost audit and involved a comprehensive assessment of the existing payment ecosystem and its potential for further development.

Client

The client was a company operating a network of fuel stations and retail outlets in western Poland, near the German border.

The nature of its business involved serving both domestic and international customers, accepting payments in PLN and EUR, and working with multiple payment service providers.

The company already had an established payment infrastructure and operational processes but wanted to assess their cost efficiency, identify optimization opportunities, and explore the potential of new FinTech solutions.

Challenge

The initial objective was to improve the economics of cashless payment acceptance. The client wanted to understand its actual payment costs, determine whether the commercial terms offered by existing providers were competitive, and identify opportunities to reduce expenses.

However, the challenge extended well beyond transaction fees. Additional charges, foreign currency settlements, currency conversion mechanisms, DCC arrangements, and the organization of payment processes all played an important role.

Another key area was the potential to use payments and financial services to create new revenue streams. The client wanted to explore additional solutions that could be introduced across its existing retail network, leveraging customer relationships, infrastructure, and business scale.

The project's objective was therefore not only to reduce costs but also to develop recommendations for improving and expanding the entire payment and FinTech ecosystem.

Our Solutions

Comprehensive Audit of Payment Acceptance Costs and Commercial Terms

We conducted a detailed analysis of existing contracts, transaction structures, and commercial arrangements with payment service providers.

The audit covered transaction fees, additional charges, infrastructure costs, settlement conditions, and other factors affecting the total cost of payment acceptance.

Rather than focusing solely on individual fee levels, we examined how charges were calculated and how they affected the client's overall business economics.

Multi-Currency Payments, DCC, and Currency Conversion

Given the cross-border nature of the client's operations, analyzing PLN and EUR payments was an important part of the project.

We assessed the existing foreign currency settlement model, currency conversion mechanisms, and opportunities related to Dynamic Currency Conversion (DCC).

We developed recommendations for optimizing these arrangements, considering both the costs incurred by the business and the potential commercial benefits of an appropriate model for handling international customer transactions.

Payment Process Analysis and Optimization

We reviewed the existing processes for accepting, processing, and settling payments.

Our assessment covered operational efficiency, dependencies on external providers, and opportunities to simplify or improve selected processes.

The objective was to identify solutions that could improve operational efficiency, eliminate unnecessary costs, and support the future development of payment services without disrupting day-to-day fuel station operations.

Market Benchmarking and PSP Negotiations

Based on the audit, we benchmarked the client's existing commercial terms against market alternatives and developed a negotiation strategy.

Discussions with payment service providers covered not only transaction fees but also broader commercial conditions and the overall economics of different payment acceptance models.

As a result of these negotiations, we secured improved commercial proposals, which were evaluated and presented to the client together with our recommendations.

Alternative Payment Methods and Models

We analyzed opportunities to expand the range of accepted payment methods and introduce alternative transaction models.

We assessed potential solutions from the perspectives of customer convenience, transaction costs, operational efficiency, and compatibility with the existing retail environment.

Our recommendations covered both improvements to the current payment acceptance model and potential directions for developing the client's transaction infrastructure.

New FinTech Services and Additional Revenue Streams

An important part of the engagement involved identifying opportunities to use financial services as a driver of business growth.

We explored the potential of card-based solutions, payment-linked loyalty programs, alternative payment methods, and additional financial services that could be offered to the network's customers.

These opportunities were assessed not simply as technology features but as potential business models, considering their ability to generate revenue, strengthen customer loyalty, and leverage existing infrastructure and commercial relationships.

As a result, the client received recommendations for potential business development initiatives extending beyond traditional card payment acceptance.

Business Recommendations and Future Development Opportunities

We consolidated the findings into a set of recommendations covering both short-term optimization opportunities and longer-term strategic initiatives.

We distinguished immediate cost optimization measures from projects requiring additional analysis, cooperation with technology partners, or the introduction of new services.

This enabled the client to view payments not only as an operational expense but also as an important component of its broader business development strategy.

Strategic Significance

The project demonstrates that payments in retail should not be treated exclusively as a cost of doing business.

A comprehensive assessment can simultaneously identify inefficiencies in existing arrangements, improve commercial terms with providers, optimize operational processes, and uncover opportunities to develop new services.

For businesses operating extensive retail networks and maintaining direct customer relationships, combining payment infrastructure with loyalty programs, card products, and additional financial services can offer particularly interesting opportunities.

The z3x engagement therefore covered two complementary areas: Payment Cost Optimization and FinTech Business Development.

The first focused on improving the efficiency and economics of existing operations. The second explored how payments and financial services could generate additional business value.

This project illustrates how payment industry expertise can be used not only to reduce costs but also to support a company's broader growth strategy.