20-year partnership helps UK’s leading MVNO 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) in the UK, 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 to deliver a reliable and scalable payments and fraud prevention solution for more than two decades, 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, 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
“We should never have to interrupt a customer journey due to payment processor issues, and that’s exactly the type of performance metric we expect from a payment provider. We handle a high volume of payments, ranging from bill payments, top-ups, and recurring payments across multiple channels. It’s extremely rare for ACI to experience any downtime or issues that prevent these transactions from going through.”
Richard Allum Senior Fraud and Risk Manager, Tesco Mobile
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.
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