Blog article
See all stories »

Pioneering a new era in e-commerce and payment processing

The payments evolution can be traced back to the early 90’s with the online sale of a Sting CD, the first-ever known e-commerce transaction.  It was a transaction that oversaw the birth of a new era in online shopping, setting the stage for ‘every step’ the industry would take thereafter. In August 1994, a 21-year-old entrepreneur named Dan Kohn, who had set up an online marketplace called NetMarket, made history by selling the CD, titled "Ten Summoner's Tales," to a friend in Philadelphia. The transaction was conducted over the then-nascent Internet, using encryption technology to safely transfer the credit card details. This groundbreaking event was facilitated by the use of a technology called Secure Socket Layers (SSL), which is still fundamental to secure online transactions today. The CD was priced at $12.48 plus shipping, and the payment was made using a credit card over the Internet, a revolutionary concept at the time.

This pivotal moment helped us to evolve from simple online transactions to sophisticated digital payment platforms like Apple Pay and Revolut. Yet, as the landscape has evolved, some challenges persist and new ones inevitably evolve. This journey isn't just about technological advancements; it's a narrative of adapting to ever-changing consumer needs and expectations, striving to make financial transactions seamless and more accessible.

Tackling SMB challenges in payment processing

In my commitment to fostering the growth of SMBs, I've witnessed how disproportionate the impact of high transaction costs can be on these businesses. Despite a saturated market brimming with payment processing providers, a significant gap remains in service differentiation. This lack of uniqueness doesn't just inhibit innovation; it places a significant burden on small businesses, which, after all, are the backbone of our economy. They struggle to compete and grow amidst rising processing costs. At Montonio, we're driven to provide solutions that not only level the playing field but also propel these businesses forward in an increasingly competitive market.

The transformative power of PSD2 and Open Banking

One of the most pivotal changes in the payment processing landscape has been the introduction of PSD2 and Open Banking. These aren't just regulatory changes; they represent a paradigm shift in the financial industry. By enabling streamlined account-to-account payments and Payment Initiation Services (PIS), we're witnessing a significant reduction in costs and an increase in efficiency. What it does is really cool –  Open Banking requires banks to let trusted third parties access customer financial data, or initiate payments but only if the customer says 'yes.' No card schemes needed in between. This has opened the door for all sorts of new, secure payment services, especially online. It's a major move towards giving the customers more options and better service. This democratization of financial services is a crucial step towards a more inclusive and equitable financial ecosystem, benefiting businesses and consumers alike.

The Polish e-commerce market: opportunities amidst challenges

Montonio’s focus on Poland, a rapidly growing e-commerce market, has shown us that, as online businesses look to expand their customer base internationally, they encounter obstacles such as fraud, security concerns, and user adoption hurdles. These challenges are significant, but they also represent a fertile ground for innovation and strategic growth.  In Poland, as in much of Europe, account-to-account payments, together with BLIK make up more than 54% of online transactions and are super popular for online shopping. 

Thanks to Open Banking, we're seeing a new wave of payment solutions like Payment Initiation Services (PIS). At Montonio, we’ve embraced PIS not only for its enhanced security and reduced fraud risk but for its  impressive payment conversion rates, ranging between 93-98%.  As you can see, this isn’t  just about safer and more reliable transactions; it's about offering a payment solution that's both economically viable and user-friendly. By integrating such efficient and familiar payment methods, we're not just participating in the market – we're actively reshaping it, making it more accessible and beneficial for merchants and consumers alike.

Montonio's modular commerce approach: a vision for SMBs

At Montonio, our approach extends beyond simple payment processing. We offer a comprehensive suite of services that addresses the multifaceted needs of SMBs. This holistic approach is not just about providing tools; it's about being a growth partner that adapts and scales alongside each business. Our Modular Commerce system isn't a static offering; it's a dynamic, evolving solution that anticipates and responds to the unique challenges and opportunities faced by SMBs.

Looking towards the future: Montonio's commitment

As we look to the future, our focus isn't confined to technological advancements alone. It's about deeply understanding and adapting to the changing needs of the market. As payment solutions shift towards greater efficiency and affordability, the real differentiators emerge in the form of value-added services. At Montonio, we're committed to offering more than just payment solutions; we're providing a comprehensive suite of services that caters to the holistic needs of businesses, with pay-in and pay-out services complemented by buy now pay later and shipping options Our offerings are designed not just to meet the expectations of consumers and merchants, but to exceed them, ensuring convenience, diversity, and innovation at every step.

Reflecting on the journey from the first Sting CD transaction to today's advanced payment ecosystem fills me with a sense of pride and responsibility. This evolution is a testament to our adaptability and innovation. At Montonio, we're not mere participants in this changing landscape; we're pioneers. We're dedicated to enhancing merchant and customer experiences, supporting business growth, and leveling the playing field in the competitive digital world. We stand ready to redefine what it means to be successful in the digital commerce space.


Comments: (0)

Rasmus Oisma

Rasmus Oisma



Member since

07 Feb



Blog posts


This post is from a series of posts in the group:

Payments strategies 2015-2020-2030

Payments systems visions, strategies, trends, pilots, forecasting, and planning for the short-, medium-, and far-term.

See all

Now hiring