
Translated by Milo Dvorak
6. 5. 2024
Business Newsletter #33
Here is the next issue of the Czech Business News in English newsletter, this time on the topic of a Jihlava-based payment gateway system and their expansion.
Published by cc.cz on 6 May 2024
After his hometown of Jihlava, the payment solutions provider has opened an office in Prague, and has expanded beyond the borders for the first time.
Twelve years after its inception, the ThePay payment gateway has given itself a symbolic gift – besides its Jihlava headquarters, it has also opened a branch in the centre of Prague on Hořejší nábřeží. "We are closer to clients, partners and experienced people from our industry, allowing us to enrich our team with new colleagues," Daniel Havel, co-founder and director of the company, which last year processed payments totalling nearly seven billion Czech crowns, says.
ThePay currently serves about four thousand online merchants, placing it among the top three major e-commerce payment players in the market. With millions of transactions, it also has a good overview of how Czechs actually shop online.
"Our data clearly indicates a trend in Apple Pay transactions among Czech consumers. The reason is simple, it’s such an easy process that it could hardly be any simpler than that," Havel comments. For users, one click is enough, whether on the phone, watch, or by using their fingerprint on the MacBook.
"Customers like simplicity and after spending several minutes or tens of minutes shopping or selecting products, they want the final process to be as quick as possible and they certainly don’t want to have to think about where, what, and how to fill out anything," explains Havel.
As ThePay's data shows, debit and credit card payments account for about 76 per cent of transaction methods, Apple Pay holds over fifteen per cent and Google Pay only about half of that, at seven per cent. A more detailed comparison reveals that payment cards generally hold a 66 per cent share, while bank transfers account for 34 per cent. Shoppers using this payment gateway make their purchases on mobile and desktop devices almost equally.
Now a thirty-seven-year-old Havel founded ThePay in 2011, along with Michal Kandre. Since then, the company has been steadily growing, and last year, it also expanded beyond its homeland. "For the first time ever, we have looked beyond the borders that marks a key milestone in our history. So far, we have fewer clients in Slovakia," Havel says.
The company is currently focusing on building a partner network and establishing relationships with providers or creators of e-commerce solutions, whether with "boxes" from Shoptet or Upgates, or with larger studios developing custom projects. Until the end of June, ThePay offers its payment gateway in Slovakia for free, without any transaction cuts, monthly fees, or any other charges.
"The foundation for us is to have an extensive infrastructure so we can serve as many applicants for the payment gateway as possible," Havel continues. Although the company has a license to operate anywhere in the European Union, it is currently focusing on the two aforementioned countries. "We do not yet have a plan as to where to go next. Our priority is to create a strong market share in Slovakia. Only then will we consider our further steps," Havel points out.