A perspective on cutting through fintech hype with data-led payments that reduce churn and power modern subscriptions.
Dan, let’s begin with your founding story—what inspired you to start Payway, and how has your approach to payments evolved since the early days?
Payway (which was originally called Edgil) has a long history. Our origins go back to our time in the publishing industry more than 40 years ago. In its early days, Edgil built systems to help publishers manage subscription payments efficiently. This was at a time when most payments were still paper-based, and Edgil’s technology allowed publishers to move toward interactive, automated payment processing.
As the subscription economy grew, Edgil became a trusted partner for publishers by providing tools that managed recurring billing, handled payment authorization, and automated renewals. The company’s focus was on streamlining recurring payments, a capability that would later become the foundation of Payway.
As digital payments expanded beyond publishing, Edgil recognized that the same recurring payment challenges applied across many industries, from media to software to consumer services. This shift prompted the company to rebrand as Payway to better reflect its broader role as a payments platform rather than just a publishing industry vendor.
Today, Payway focuses on delivering recurring payments, network tokenization, ACH capabilities, and analytics-driven tools to reduce declines and improve payment success rates.
The subscription economy has taken off across industries. How has this shift influenced the way you architect and adapt your platform?
The rise of subscriptions has completely transformed how we approach payments. It’s no longer about processing a single transaction. We use more data than ever, including banking data, card types, and payment behavior to ensure higher acceptance rates and fewer failed transactions. We’ve also optimized our backend to align with processors and banks so they recognize recurring payments and approve them at higher rates. It’s this focus on data and architecture that allows our customers to keep their subscribers longer and reduce churn.
As network tokenization gains traction, what does successful implementation look like for merchants who want security without friction?
Successful network tokenization should feel invisible to merchants. We implement network tokens to process transactions securely and automatically update card information while still mapping those tokens back to our system. This gives merchants portability and control. They can switch processors without losing their data. For merchants, it’s a seamless way to improve security and authorization rates without adding operational complexity.
Many businesses jump into recurring payments without fully understanding the operational nuances. What are the most common blind spots you encounter?
One of the biggest blind spots is chargebacks. They often stem from poor communication. Customers don’t expect a charge, especially with annual subscriptions or trial offers that convert to full price. Another blind spot is declines. Even with tools like Payway’s account updater, you need a clear process to recover failed payments and request new card information efficiently. Merchants also underestimate the importance of properly configuring their merchant accounts for recurring billing. Addressing these operational details upfront is critical for reducing losses and maintaining customer trust.
You’ve been part of the fintech landscape through several innovation cycles. Looking back, what was the moment that truly changed the game for Payway?
The game-changer for us was the transition from PC-based software to a cloud-based gateway and our early focus on subscription and recurring payments. Later, adopting RESTful APIs allowed us to make integration far easier and more reliable for merchants. These innovations didn’t just keep us relevant, but they positioned us as a leader for companies that rely on recurring revenue.
In a space full of bold claims and overpromises, how do you decide which trends to act on and which to leave behind?
We let data lead the way. A few years ago, fraud prevention solutions promised near-perfect detection, but many generated too many false positives, blocking legitimate customers. We analyze trends through the lens of probability and impact. The same applies to payment recovery. We focus on reducing declines upfront, not chasing unrealistic recovery rates after the fact. By staying grounded in analytics and customer outcomes, we avoid chasing hype and focus on what actually works.
Balancing ease of use with airtight security is a constant tension in payments. How do you help clients walk that line effectively?
We don’t believe in “frictionless” payments. Some level of intelligent friction is necessary for security. For example, our tools prevent card testing attacks (or “carding”) while still enabling legitimate customers to complete transactions easily. We also support digital wallets like Apple Pay and Google Pay, which add convenience without sacrificing security. Our goal is minimal friction: –security that protects without getting in the way of the customer experience.
With digital wallets and embedded finance growing rapidly, what role do you see Payway playing as the payments stack becomes more layered?
Our role is to remove complexity for our merchants. Payway provides an API-driven platform that supports everything from credit cards and ACH to major digital wallets. We handle the heavy lifting of implementation, so businesses don’t need to invest in additional development work. As payments become more layered, we stay focused on being the infrastructure our customers can depend on — simple, secure, and scalable.
What’s your perspective on legacy payment systems trying to modernize—where do they typically fall short, and how do you position Payway as a modern alternative?
Legacy systems often try to bolt on new features to outdated infrastructure, which leads to reliability and performance issues. When we built Payway, we started from scratch with a cloud-first approach. That clean-slate mentality allows us to deliver faster updates, more flexible integrations, and a better overall experience. Merchants don’t want patchwork—they want a platform built for today’s payments landscape.
For entrepreneurs stepping into the payments world today, what’s the single most important mindset shift they need to make to succeed long-term?
Flexibility. The payments space is crowded and constantly changing. You can’t compete on price alone. You need to deliver value — whether that’s higher transaction success rates, better data insights, or smarter integrations. Entrepreneurs who build for adaptability and focus on solving real merchant problems will be the ones who last.
Quote from Dan:
“In payments, success isn’t about processing more transactions, it’s about making every transaction count.”
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