Modern fintech solution for the largest convenience store chain in Central and Eastern Europe.
Żabka Polska owns the biggest Polish, as well as Central and Eastern European convenience store network operating under Żabka brand. It’s been present on the Polish market for many years now, currently running over 7000 stores in the majority of cities and towns in Poland. The Żabka store chain represents a modern retail concept, which strives to ensure a convenient shopping experience for all its customers.
Our cooperation started at the end of 2017. Since then, we’ve become a technological partner of Żabka Polska, helping in its digital transformation and the development of two mobile applications: żappka and frappka.
The first app is a core element of Żabka’s digital communication efforts with its customers. More than 3 million żappka users take advantage of personalized promotions and discounts, collect points (żappsy) while they're shopping, and exchange them for rewards. Everything happens through the app, and Żabka’s customers appreciate it. They are not the only ones, though.
In January 2020, the app was recognized at NRF in New York - the biggest retail expo in the world. It was also awarded during Mobile Trends Awards 2019 (in the Commerce / M-commerce category). Nonetheless, we don’t want to rest on laurels: together with Żabka Polska, we’ve been implementing brand new, innovative modules to the app in order to keep meeting customer expectations and business goals.
One of such goals was to ensure faster and more secure payments in Żabka stores, with the ability to apply personalized discounts and collect loyalty points at the same time. For this reason, Żappka Pay was created.
Żabka took advantage of a modern fintech infrastructure, as well as our experience in developing backend and integrating multiple solutions into one reliable system. This allowed Żabka to create its own payment system, which will serve as a base for new transactional services in the żappka app.
As per usual, we started with technical analysis. The aim was to specify how the integration between the payment provider (First Data), Żabka’s POS system, and its mobile app will work. The key element that now combines all these systems was designed by us: Payment Gateway & API.
After the technical analysis, we proceeded with the actual backend development. For this purpose, we chose Python and its well-known framework, Django. The framework is not only popular but also universal, and proves to be a good choice when there’s an integration of multiple systems involved. In this case, the main purpose of Payment Gateway is to support the activities revolving around tokenizing cards and authorizing users (based on the PIN code or biometrics).
We also ensured the safety of the whole process, leveraging best practices and solutions that impede the so-called man-in-the-middle attack during communication with the device. Specifically for Żappka Pay, First Data Polska made it possible to:
protect sensitive data of card owners by communicating with the app solely through tokens,
ensure tokenization and detokenization of all cards added to the app’s wallet,
execute strong user authentication when adding cards to the app thanks to 3D Secure technology,
settle transactions and transfer the funds to the Merchant’s account.
Another important element of Żappka Pay that we created was a brand new module in the mobile app. When developing the UI of the app, we focused on the best user experience possible, paired with the reliability of the app. In order to achieve that, we implemented a range of innovative solutions, thanks to which the app offers a truly seamless experience.
The Żappka Pay module makes it possible to:
add payment cards in three ways, without the need to input the card details manually: by scanning the card, “reading” its data with the use of NFC, or adding the card during shopping after giving the consent. There’s also an option to add it manually,
pay fast and securely for any purchase in Żabka stores (and apply personalized deals & loyalty points in the process),
authenticate with the PIN code, biometrics or face recognition,
manage payment cards - each user can add multiple cards, edit their details or erase them as they please.
Żappka Pay enables fast and secure payments in-store, but also offers a range of benefits to the business:
increasing the “usability” of the loyalty program and making it easier to exchange loyalty points for rewards,
shortening the time needed to serve żappka app users in-store,
being an important building block for other Żabka services that leverage transactions - i.e. Click & Collect that’s being currently tested, or home delivery option (Żabka do domu).
We’re pleased to keep working alongside Żabka Polska on its digital transformation, this time by developing modern fintech services. This venture definitely proved that “every company will be a fintech company” one day - and thanks to its brand new Żappka Pay solution, Żabka already finds itself among the leaders of such a transformation.