Tesco Mobile dials up digital growth

20-year partnership helps UK’s leading MVNO in the UK optimize online payments

Tesco Mobile, a unique joint venture between telecoms giant Virgin Media O2 and retail powerhouse Tesco, is the leading mobile virtual network operator (MVNO), serving more than 5.5 million customers.

The only telecommunications provider in the Top 20 UK Customer Satisfaction Index (UKCSI), Tesco Mobile has long been recognized for its award-winning service and customer-first approach, winning Uswitch’s “Best Mobile Network for Customer Service” four years in a row.

Having partnered with Tesco Mobile for more than two decades to deliver a reliable, scalable payments and fraud prevention solution, ACI is a strategic ally in Tesco Mobile’s mission to provide top-tier, secure, and frictionless payment journeys.

The challenge

Tesco Mobile, a joint venture between Virgin Media O2 and Tesco, serves more than 5.5 million customers as the UK’s leading MVNO. As digital channels became the primary mode of customer engagement, especially accelerated by the COVID-19 pandemic, the company faced several critical challenges:

• Rapid adoption of new payment methods: The need to quickly integrate digital wallets and alternative payment options without disrupting existing systems was essential to stay competitive
• Exponential growth in digital traffic: With most purchases shifting to the website and mobile app, Tesco Mobile needed to scale its payments infrastructure to handle surging volumes without compromising performance
• Sophisticated online fraud threats: The rise of flexible payment options, including one-off purchases and recurring payments for SIM-only plans and handset contracts, has increased exposure to fraud
• Customer expectations for seamless experiences: As a top performer in the UK Customer Satisfaction Index, Tesco Mobile had to maintain frictionless, secure checkout experiences while managing risk
• Regulatory compliance and data security: Handling sensitive customer data and staying compliant with evolving standards like PCI DSS required robust, automated solutions

The solution

Tesco Mobile partnered with ACI Worldwide to implement a comprehensive payments orchestration and fraud prevention strategy. The solution was designed to be scalable, secure, and agile:

• Future-ready payments orchestration platform: ACI’s platform powered Tesco Mobile’s billion-pound operations, enabling seamless integration across web and mobile channels
• AI-powered fraud prevention: Leveraging more than 10,000 fraud signals and 7,500+ AI features, ACI provided real-time contextual decisioning using device intelligence, IP, geolocation, and behavioral biometrics
• Rapid deployment of new payment methods: Tesco Mobile launched Apple Pay and Google Pay within days, thanks to ACI’s flexible infrastructure that didn’t require API changes
• Enterprise-grade resilience: The platform ensured zero downtime during peak periods like Black Friday and Christmas, with sufficient terminal IDs and processing capacity
• Consultative support and automation: ACI’s proactive account management and automated regulatory updates (e.g., PCI DSS compliance) reduced manual overhead and accelerated innovation

The results

The partnership delivered measurable outcomes that reinforced Tesco Mobile’s leadership in customer experience and digital transformation:

• Frictionless checkout experiences: High approval rates and low fraud levels ensured smooth customer journeys across all channels
• Zero downtime during peak trading: Even during high-volume events, the system maintained uninterrupted performance, supporting critical sales periods
• Faster time to market for payment innovations: Tesco Mobile was able to introduce new payment options quickly, enhancing customer convenience and choice
• Strategic growth enablement: The 20-year partnership with ACI became a foundation for future initiatives, including open banking, embedded finance, and advanced fraud prevention
• Revenue optimization and risk mitigation: AI-driven fraud orchestration improved acceptance rates and protected against emerging threats like account takeover

A strategic foundation for future success

As Tesco Mobile continues to prioritize digital-first engagement, primarily through its app, ACI’s role is becoming more strategic. The company is relying on ACI’s payments orchestration platform and consultancy to:

• Drive higher conversion and lower declines across digital journeys through real-time optimization and smart routing
• Scale AI-powered fraud prevention to combat sophisticated threats like account takeover without compromising customer experience
• Explore next-gen payment options like open banking and embedded finance to meet evolving customer preferences

Collaboration that powers growth

Tesco Mobile’s 20-year partnership with ACI is a testament to reliability, innovation, and mutual growth. From powering complex, high-value subscriptions to helping combat new fraud threats, ACI’s platform and people are central to Tesco Mobile’s mission to deliver best-in-class service and secure, seamless payments for convenience and value-focused mobile-first customers.