Vienna-based paybox Bank, a subsidiary of A1 Telekom Austria, is migrating its operations to the Avaloq Core Platform to drive the expansion of its business and to create a comprehensive suite of banking services. With this agreement, paybox Bank has the flexibility to expand into any business area as a licensed online bank, with the ability to efficiently scale as its client base continues to grow.

paybox Bank offers credit cards as well as payment solutions for private and corporate clients. The bank is now planning to expand its product range and to use EU passporting to grow in Germany and Southeast Europe. paybox Bank is wholly owned by A1 Telekom Austria AG. Since its founding in 2000, paybox Bank has focused on innovative mobile commerce solutions and was one of the first banks to launch a comprehensive commercial near-field communication (NFC) offering in 2007. With the Avaloq Core Platform, paybox can operate as an online bank in full compliance with regulations from Austria’s Financial Market Authority (FMA) and Germany’s Federal Financial Supervisory Authority (BaFin), while continuing to drive innovation in Europe’s financial sector.

Avaloq’s core banking platform, implemented by Synpulse, will automate and streamline the bank’s processes and workflows across the front, middle and back office. This ensures high straight-through processing (STP) and service accuracy rates to enhance the efficiency of paybox’s operations and minimize payment reversals. The Avaloq Core Platform also offers flexibility and a fast time-to-market for new products and services, while facilitating seamless expansion into new markets.

Michael Wilhelm, Chief Operating Officer and Executive Board Member at paybox, said: “We are excited about our ambitious growth plans, which we are jointly developing with Avaloq and Synpulse. The Avaloq Core Platform will provide the necessary flexibility to enable us to expand into any client segment or business area in the future – and to quickly launch new solutions in response to market trends. As a leader in mobile payments and innovative credit card solutions, we aim to shape the future of digital finance in Europe. And thanks to this new partnership, we can rely on Avaloq’s expertise in banking to help us achieve our growth ambitions. We look forward to working closely with Avaloq in the years to come.”

Thomas Beck, Co-Chief Executive Officer at Avaloq, said: “Our core banking platform will form the backbone of paybox Bank’s operations, supporting fundamental processes such as client onboarding, payments and settlement. This will provide a strong foundation on which paybox can develop further propositional capabilities to enable enhanced digital engagement and to help deliver on clients’ financial objectives. At Avaloq, we constantly screen the market to keep our clients compliant with evolving regulations – including those from FMA and BaFin. We are proud to partner with such an innovative bank and to help drive the ongoing digital transformation in finance.”