PSP Angels

VIKTORIA SOLTESZ Founder of PSP Angels

What’s hot in 2020

Q What can we expect regarding payments in 2020?

When it comes to payments within the high risk industries, I am afraid, 2020 is not good news. The banks are getting more and more strict, so when it comes to opening an account or finding the right payment processor, there are definitely more dark clouds than sunny days.

Back at the days we used to talk to our accountants when it came to setting up a company. We made the decision based on the tax benefits of certain jurisdictions. The tables have turned, and today, when it comes to company structure, the first person you need to consult is your payment expert.

Payment is very complex when it comes to high risk. The prices usually depend on the relationship with your bank and on your individual circumstances, plus the laws are changing all the time. One mistake (eg an unmonitored email address which results high chargeback) can break your operation.

During our work, we have noticed that several companies struggle to understand the ever changing banking requirements and do not have a dedicated payment department. This can be the biggest weakness for any business.

We need to understand that our most important ally or the biggest enemy is our bank. They control our most important operation – our collection function. The challenge is to be sure that our payment providers allow our clients can pay us whenever and however they want to, the conversion rate is high, the costs are low and our money is safe. Getting it right is time consuming, but extremely necessary.

Q What you think will be upcoming in 2020?

More regulation, more paperwork and definitely more headache. The payment function cannot be overlooked if we want to run a smooth operation. I think it is absolutely necessary to to understand and weight the risks when it comes to setting up and running a safe if and calculated payment operation.

We have experienced this before with compliance when the companies were forced to build a whole department out of nothing to fulfill all the new KYC requirements. First we ignored it, then we fought against it, now we are all doing it and paying for it.

Having a payment expert is the same. Hiring someone in house however could be very expensive, mainly if you are a start up.

We provide outsourced finance and payment expert function which starts with the evaluation of the company: revising the company structure, cash flow and fraud functions, on site, or remotely. Then, with a team of payment experts, we create a personalised financial and payment plan about how to optimise the target area’s processing costs, increase the conversion rate and improve the cash flow.

Then we seek for specific payment providers who can offer the relevant payment methods, negotiate the fees, collect and present the company’s documents, chase up the provider, and overall assist the client during the whole process, to reach the onboarding stage. The engagement can also include handling the local consultants, as well as ongoing project management services for the payment or finance operations.

Costing, collection of funds and customer experience all depends on how you collect the payments from your clients, therefore it determines your place in the competitive industry.

You either keep up or give up.

Viktoris Soltesz Founder of PSP Angels