Case study
FAO Schwarz elevates an iconic retail experience with unified payments
Staying relevant for over a century takes more than nostalgia; it requires the agility to adapt to how people shop today. When FAO Schwarz wanted to modernize their infrastructure, they turned to Adyen to build a payment strategy that honours the past while building for what's next.
For more than 160 years, FAO Schwarz has been known for wonder, play, and one-of-a-kind experiences.
But behind the magic of giant piano mats and toy soldiers, the iconic retailer faced a thoroughly modern challenge: how to innovate an operational foundation without disrupting a legacy brand.
To bridge the gap between their historic in-store experience and the expectations of the modern shopper, FAO Schwarz chose Adyen to unify their payments and streamline operations.
A modern foundation for a beloved brand
Before moving to Adyen, the company’s payments worked. But they weren't built for scale.
“It functioned, but it wasn’t efficient,” says FAO Schwarz Director of Retail, Hector Vasquez. “Troubleshooting meant digging through multiple systems to find what happened with a transaction.”
Since multiple teams were involved, including parent company ThreeSixty Group, FAO’s internal retail and ecommerce groups, and Teamwork Commerce, alignment was essential. The team rallied around clear shared goals: operational simplicity, scalability, and exceptional guest experiences.
For us, modernising wasn't just a technical upgrade. It was a chance to streamline our operations and build a foundation that could grow with us.
Hector Vasquez
Director of Retail, FAO Schwarz
One unified payments platform
Moving to Adyen’s single platform has let FAO Schwarz see immediate improvements across daily operations.
“The biggest shift is consistency,” Vasquez notes. “The terminals respond more quickly, support has been phenomenal, and the environment is unified.”
Teams across the business now use the same platform to view deposits, chargebacks, and dynamic currency conversion (DCC) activity. What used to take multiple tools now takes one.
“It’s made the day-to-day much easier. And our partners at HQ and in accounting can log in, pull what they need, and move on without having to consult multiple teams or technology solutions.”
Enhancing the guest experience with every visit
Boasting massive foot traffic (10,000 visitors on a slow day) and guests from over 200 countries annually, FAO Schwarz needed payment tools designed for a global audience.
Adyen innovations that now help streamline payments end-to-end include:
Fast, flexible checkout with Pay by Link With Pay by Link, FAO Schwarz's VIP Services team (who help facilitate behind-the-scenes experiences and personal shopping) can send guests payment links to complete purchases away from the register. This removes the pressure of traditional checkout lines, while also reflecting how modern consumers prefer to shop.
Dynamic currency conversion (DCC) With so many international guests, DCC built into the terminal lets shoppers pay in their preferred currency. As Vasquez highlights, FAO has seen strong adoption from global visitors: “We see on the back end that people choose their home currency again and again. It makes the experience easier and more familiar for them.”
Charitable donations at checkout With a history rooted in imagination and generosity, philanthropy has always been a part of FAO Schwarz’s identity. Using Adyen Giving to make donations available on every terminal felt natural. “Guests appreciate the option to give back,” says Vasquez, “while having it built into the terminal keeps the moment simple and meaningful.”
Protecting a legacy while shaping the next chapter
Modernizing a 160-year-old brand requires careful balance.
“Innovation becomes less about replacing the old and more about elevating it. You have to protect the legacy while shaping what comes next."
Hector Vasquez
Director of Retail, FAO Schwarz
Adyen’s unified platform empowers FAO Schwarz to easily explore, test, and launch new features. “We can expand without having to rebuild the entire foundation,” explains Vasquez, “with mobile checkout, loyalty integrations, and other omnichannel tools our next focus.”
Why FAO Schwarz chose Adyen
For FAO Schwarz, deciding on a payments partner came down to alignment with where the business was going, not where it had been. “Adyen offered a unified, scalable, transparent ecosystem that matched our vision,” says Vasquez.
The team also sees working with Adyen as a subscription to innovation, with features like terminal themes allowing FAO to bring its branding and storytelling into the checkout.
“With the M450 devices,” explains Vasquez, “we can brand the terminals themselves. Down the line, adding video or themed Pay by Link flows could help us remind guests that FAO is still here—163 years later.”
Advice for retailers evaluating their next move
The FAO Schwarz team offers a clear starting point for retailers considering new technology solutions.
“Define the experience you want your guests and employees to have,” Vasquez advises, “because technology should enable that vision." As for choosing a payments partner, Vasquez points to collaboration and curiosity as essentials.
The right partner solves today’s needs while preparing you for the future.
Hector Vasquez
Director of Retail, FAO Schwarz
By choosing Adyen, FAO Schwarz has secured a tech stack that solves today’s needs while preparing for the next chapter of their enduring story.
See how Adyen makes payments work every time with our solution built for all retailers.