In the latest episode of the EGN Podcast our host Efe von Thenen talked with Gabriel Dixon, founder and CEO of Novalnet, about the critical role of payment strategies in e-commerce success. Gabriel Dixon offered an insider’s perspective on how his family-owned business is challenging industry giants like PayPal and Stripe, bringing innovative and customer-focused solutions to merchants worldwide.
Novalnet’s unique positioning in the payment industry stems from its family-owned structure. Unlike investor-driven multinational corporations, Novalnet operates with a team of 300 employees committed to providing merchants with tailored, end-to-end payment solutions. Gabriel Dixon emphasized that the company’s mission is rooted in problem-solving rather than product selling.
“We don’t sell; we provide solutions,” Gabriel said. “We hold the customers’ hands and walk them through their journey, no matter what.”
This approach contrasts sharply with many payment providers that focus solely on transferring funds. Novalnet’s model includes fraud prevention, risk management, compliance, and even customer support, making it a true full-service partner for merchants.
From software engineer to payment pioneer
Our guest’s journey into the payment industry is as remarkable as his company’s approach. Starting his career as a software engineer in Bavaria, he was inspired by the local work culture to pursue independence. By 2005, he had founded Novalnet, recognizing a gap in the market for a payment company that prioritized merchants’ needs over mere transactions.
At the time, Germany’s payment industry was crowded, with over 800 companies. However, most providers operated as simple fund transfer systems. Gabriel Dixon saw an opportunity to create a service that would address merchants’ operational challenges and help them succeed in an increasingly competitive market.
A tailored approach to merchant success
Novalnet’s process begins with understanding each client’s unique requirements. Before onboarding a merchant, the company conducts a one-hour consultation to evaluate sales channels, target markets, and risk profiles. This in-depth analysis allows Novalnet to design customized payment solutions that optimize the checkout experience and reduce friction.
This tailored approach is particularly relevant in today’s e-commerce environment, where efficiency and profitability are paramount. Our guest emphasized that merchants who rely on a one-size-fits-all solution often face unnecessary hurdles, whereas personalized systems can drive significant improvements in conversion rates.
Combatting fraud in the digital age
Fraud prevention is a key area of focus for Novalnet. Gabriel Dixon highlighted the increasing sophistication of fraud tactics, such as identity theft and IP-based scams, and stresses the importance of robust security measures.
One of Novalnet’s innovations is its tokenized payment system, which allows customers to provide their payment information once and use a unique token for future transactions. This not only enhances security but also simplifies the checkout process for returning customers.
Simplifying complex systems
Another standout feature of Novalnet’s approach is its ability to simplify complex payment systems. Gabriel Dixon believes that while the underlying technology can be intricate, the user experience should always be intuitive. Novalnet’s partnerships with platforms like SAP, Magento, and Salesforce ensure that merchants can integrate payment solutions seamlessly into their existing operations.
Preparing for the future of payments
Looking ahead, Gabriel Dixon predicts transformative changes in the payment industry. Artificial intelligence will play a central role in enabling faster analytics, fraud prevention, and personalized experiences. Additionally, emerging payment methods such as cryptocurrencies and the European Payments Initiative (EPI) are set to reshape the landscape.
He also warns merchants about the risks of relying on big data players, which could eventually leverage their access to customer information to compete directly with merchants. To stay competitive, Gabriel Dixon advises businesses to invest in understanding their operations and selecting partners who prioritize their success.
A partner for long-term growth
As the podcast concluded, Gabriel Dixon reiterated Novalnet’s commitment to being more than just a payment provider. The company acts as a partner, helping merchants navigate the complexities of payment processing while focusing on their long-term growth.
To hear more about Gabriel Dixon’s insights and Novalnet’s innovative approach, watch the full talk below:
Can’t watch? No problem. It is also available on Spotify and Apple Podcast.
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