“Merchants who are transacting with their customers online are exposed to increasing threats, and as a result data breaches are becoming more frequent. Recent statistics show the average cost of a breach is US$7.4 million or $225 per stolen record which makes the consequences of a cyber attack potentially catastrophic for a merchant,” says Scott Johns, President, and CEO at Delego.
In addition to the increasing risk of being breached, PCI compliance requirements continue to expand in response to these threats, dramatically adding cost and complexity for merchants.
Delego is helping SAP merchants solve these problems, as well as integrate and streamline their e-payment processes. The company's cloud-based solutions can be deployed seamlessly to secure the merchant's SAP system, web store, network and workstations, ensuring that unprotected payment information is never transmitted, captured or stored in the merchant's IT environment. All payment data is tokenized and stored in Delego's secure, single-tenant cloud, rendering the data in merchant systems worthless in the event of a data breach.
“Our solution is the most secure on the market,” says Johns. “We utilize a single-tenant architecture rather than multi-tenant, so our merchants never have to worry about their customers’ sensitive payment data being co-mingled with others.
Delego's roots and expertise are in SAP. Established in 1997 as an SAP consulting firm, Delego became an SAP partner and a certified payments solutions provider in 2000. Today, the company is a market leading provider of best-in-class electronic payment integration, transaction enablement and security solutions to many Fortune 500 companies.
One of the many advantages of Delego is its close partnership with SAP and a solution that is purpose-built for it. "Because we are not trying to accommodate multiple ERP architectures, our integration with SAP can be tighter. Unlike other solutions, Delego uses SAP as the system of record which dramatically streamlines the reconciliation processes for our customers" says Johns.
"Today the focus of merchants is typically around managing security, risk, PCI compliance and SAP integration. We’ve solved that problem for them"
Johns believes that data security and SAP integration will continue to be cornerstones of their business, but sees enabling commerce as the future. “As consumers are embracing e-commerce as their preferred way to buy, merchants are increasingly focused on improving the online experience for their customers. Payments is an essential aspect of the user experience, and our customers are looking for a partner who can enable new technologies and payment methods simply and securely. The payment ecosystem is complex and evolving rapidly. Customers want a partner to simplify payments so they can focus on running their core business.”
This philosophy appears to be resonating in the market. According to Johns, the company has grown dramatically in the last two years and now processes over US$7 billion in transactions annually. In addition to forward-looking products, the company deeply engages with each customer and invests the time to understand the uniqueness of their business, systems and pain points to offer them the best solutions. According to Johns, no two customers are alike, and the service they receive should reflect that. “We have invested heavily into our product to create bespoke solutions that are flexible and scalable, allowing our experienced team to offer solutions that fit the unique and ever-changing requirements of our customers.”
Customers want a partner to simplify payments so they can focus on running their core business
Delego met all these requirements implementing their cloud-based payment platform and now processes over $500 million annually for the customer. Not only did the solution seamlessly integrate the client's payments system and eliminate the risk of breach, but also helped save $400,000 annually through streamlining manual processes and reducing compliance costs.
The payment processing landscape is constantly shifting with mergers and acquisitions. Delego remains independent from an ownership perspective and maintains solid partnerships with over 50 processors along with strategic technology initiatives with Visa and Mastercard. This processor-neutral approach is key to its customers because it disentangles the merchant’s integration and security solutions from its choice of processor partner. For merchants who want to scale into new markets, Delego provides the flexibility to partner with best-of-breed processors around the world and benefit from local settlement cost savings.
“We can connect our merchants to any number of payment processors as well as alternate payment mechanisms like PayPal, Amazon Pay, and others. Moreover, we can integrate those with SAP to transform it into a hub for the merchant’s e-payment ecosystem” explains Johns.
“Today the focus of merchants is typically around managing security, risk, PCI compliance and SAP integration. We’ve solved that problem for them,” says Johns. “But tomorrow is all about enabling their businesses. We’re excited to empower our customers with technology and help them do that.”
Data breach. Record growth. That’s how Delego sees the world, and it sounds like a good place to be.