PSP Angels

VIKTORIA SOLTESZ

Founder of PSP Angels

PAYMENTS INDUSTRY

The payments industry has always played a big part in our life - it is the silent component which connects merchants and their clients all around the world. Before the compliance gained such momentum, companies did not pay a lot of attention to this part of the business. It was automatic, easy, and available. But as the businesses started to move online, we realised there are “higher risk” and “lower risk” industries.

As time went by, and AML and compliance got more and more familiar visitor in our lives, we realised - having a payment professional in house is a must for all businesses.

It is fascinating, how the public health crisis caused by Covid-19 accelerated the development of the payments industry worldwide. Both, consumer and merchants’ preferences have shifted towards an online shopping experience that is so efficient and easy to use that allows them to keep doors open and companies running. However, no society has shifted to cash-free; yet. Aside from logistical challenges, several social issues must be addressed, before society can give up on cash completely. There are notable advantages to a cashless society, but there are also concerns that a move to cashless can cause problems and privacy issues. Ongoing changes towards e-commerce and digital payments have all been significantly boosted in the past six months. It is noticeable to state that this crisis is forcing a decade’s worth of innovation into less than a year. More importantly, this occurs in areas that are typically evolving at a slower rate, such as areas focusing on customer behaviour and shopping experience, economic business models and payments operating models.

This huge ecosystem is made up from a wide variety of key players, that require specialised knowledge and skills, to communicate with each other during each and every payment transaction process. Some of these players are Issuers and Acquirers, Credit Card Networks and Institutions, Payment Processors and Facilitators, Payment Gateways, Independent Sales Organisations and Value-Added Resellers. And everything in between.

Thus, the payments industry came up with new faces faster than ever and introduced new payment methods and more advanced technology. Confusing right?

But can YOU keep up with all these changes? Are you post-COVID ready?

Lets summarise some of the risk areas which might need your immediate attention

• Data privacy issue. Payment and personal information are accessible to the business you transact, which can be vulnerable to data breaches. Is your password still 1234?

• Technical problems like outages, downtime, and internet interruptions can cause significant losses. How stable is YOUR platform and internet provider?

• If you target countries where people live in lower economic strata, especially those without bank accounts, you can still keep up with the evolving cashless technology. The same goes for the older generations who may not be adapting and comfortable with digital payment modes. You surely not only taking cards on your website, right?

• Open banking. Bank wires are way too traditional and slow. But now, you can collect funds instantly from several banks, with one integration. Look it up and thank me later.

• Crypto. Yes, we all know that BTC hit 50k and we should have listened to our friend who told us to invest. But you don’t need to risk anything to benefit from the new technology. One tip – some crypto transfers are cheaper and quicker than traditional FX transactions from bank-to-bank.

• Cost of the providers. Perhaps that old PSP friend of yours are now finally happy to drop the fees after years of good processing. Or shall you keep your options open and start looking for an alternative one?

As you see, the payment industry is ever-changing but being informed takes a lot of time.

At PSP Angels, we screen the market so we can give an accurate and straight-forward picture about the best choices. We are always up to date with the latest developments and providers and understand the various acceptance criteria and requirements, so you don’t have to.

We can not only find the best possible and cost-effective solutions for the most challenging cases, but we can help you to plan for the future accordingly. So you can focus on what you do best – running your business.

Viktoris Soltesz Founder of PSP Angels