From Fossil Fuels to Digital Products – A Transformation Story

The financial sector isn’t the only industry under enormous pressure for change in 2024 and beyond – fossil fuel companies face huge demands for transformation – from sustainability efforts to payment innovation to customer experience.

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But not all of them are clinging to old business practices or just making a few cosmetic tweaks, some organisations are using this seismic shift to create new lines of product and service offerings, modernizing loyalty schemes and planning ahead for a future where their current offering will be less relevant.

One of the architects in our Builder’s Guide to Strangely Satisfying Card Experiences, Johan Gabrielsson and his team have travelled this exact road with OKQ8, taking the considered but bold leap forward by transitioning a historically fossil fuel business to a sustainable mobility one, using a card platform as the linchpin.

New beginning, new audience

“OKQ8 is in the middle of a huge transformation – moving from a fossil-based business to a future sustainability partner within the mobility area for both B2B customers and B2C customers. 99% of our entire business has come from selling fossil fuels to private customers and fleet customers, along with the station network which is made up of convenience stores and sells food, etc.”

Gabrielsson realised though, that in order to replace that traditional business, OKQ8 would need to offer a host of new products and services and offerings going forward. One of the ways to kickstart this strategy was in uncovering a new audience.

An increase in digital services was another route the business took to appeal to this younger demographic. The new app solution developed is connected to the loyalty program which allows members easy ways to make their payments with virtual cards and digital wallets. This design also helps reach customers in the mobility space who don’t yet have cars of their own but make use of other vehicles and modes of transport.

Choosing the right partner

Since preparing for the future and all its unknowns was at the very core of this transformation project, it made sense that the potential for a long-term partnership was one of the key elements OKQ8 looked for when choosing a card program management provider.

“The only thing we know now at OKQ8 is that in five years’ time we will not exist as a company if we stay selling fuels at stations, because that’s not what will be requested.”

OKQ8’s vision for the future is to move away from the very specific industry of fossil fuel to the area of more generalised mobility and digital payments. In 2024 and beyond, mobility has a wide range of applications, from electric and hybrid vehicles to ride hailing and sharing, and even future innovations we are not yet aware of, that may spring up as a result of this new world focus.

From offering fuel and service station purchases like convenience items, the goal is to transform OKQ8’s services entirely to support a more sustainable future. This could look like electric vehicle charging stations instead of petrol and diesel supply, ride-share hubs or e-hailing stations and even mobility centres, where transport brands can offer services, support and aftersales care. The key element of this vision for OKQ8 though would be in the digital payment card architecture the organisation will offer partners, giving them brand relevance and value – a product that could be sold on to interested parties.

For Gabrielsson, it was vital that the card solution chosen was flexible and could support any potential new way of receiving payments – even if it was for products and services that don’t yet exist. ‘Tagging along’ on a program’s product roadmap was a crucial element to the business’s future-proofing plan.

But as important as the exciting tech is, regulatory and compliance requirements cannot be ignored.

“You can’t just take a chance – you need to be 100% certain that you are compliant, and that you fulfill all the regulatory requirements. As long as this is take care of, there’s still room to take a take a risk and jump into a more progressive solution even within the card management area.”

After extensive research and full competitor evaluation, it was clear to Gabrielsson that Enfuce offered the solution OKQ8 was looking for. With the desire to be cutting edge in innovation in card management, the cloud-based cards and progressive approach offered by Enfuce felt a real fit when it came to the entire transformation strategy for the company.

“Customer journeys are changing, and customers are expecting us to change quickly and to fulfil new requirements and features in a minute, so we need to be able to solve for this at a moment’s notice. If we had gone for a more traditional program from a competitor we would have received a similar solution to what we have today but not one that would support our vision of taking a big leap into the future.

A learning Gabrielsson is quick to share is not to underestimate the complexity involved in such a huge transformation.

“If I had to do it again, I would take a more traditional planning approach – creating a roadmap to illustrate the entire architecture and solution and not only having our card program as one part of it. It’s a far bigger, more complicated area than you originally think.”

Smarter business, brighter future

In the process of building a new portfolio of products and services for customers, OKQ8 realised another opportunity: could they sell their software solutions to other businesses too?

“The interest from other companies in our new service is quite high. We are definitely interested in selling it on as it was always in the funnel to potentially sell our card solutions, which to some extent we already do.”

Gabrielsson feels many of OKQ8’s competitors are also feeling the push for transformation and believes a lot of this demand is down to environmental pressures – driven largely by younger consumers and members of the public.

“We are even attracting more young employees because they want to be part of the transformation of a business towards sustainability. And that’s a really positive thing for us, because we want to push our full transformation to happen as early as possible and be a front runner in the industry.”

There is something exciting about a business that is evolving but one that is evolving for the greater good is particularly special. Gabrielsson notes that while the business must transform to survive, it’s also the benefit to society that compels them to keep pushing, taking calculated risks and rethinking their core business in order to serve both people and the planet.

For the full story and more inside information on how the right card management partner can help transform business, download our full report, The Builders Guide To Strangely Satisfying Card Experiences and film here.