How Modern FinTech Is Helping Businesses Overcome Their Biggest Payment Challenges

Commercial enterprises can rarely establish a payment delivery platform alone. Here’s how Rapyd’s FinTech-as-a-service solution can help.

It’s not easy for small businesses and e-commerce startups to find their footing in today’s digital payment ecosystem. Every FinTech company — from e-commerce merchants to online service providers to gig economy platforms — needs to account for compliance rulings, navigate cross-border regulations, and deploy robust security protections when deploying their platforms. And that’s alongside making sure their Funds-In and Funds-Out networks can facilitate payments and money movement as advertised.

The good news is you don’t have to do it alone. As we discussed in Rapyd’s 2019 Global Digital Payments Guide, a modern FinTech partner can help you establish the necessary infrastructure to succeed in today’s online marketplaces. As proof, here are a few examples of challenges our FinTech-as-a-service platform can address for your commercial enterprise.

Reliability
Almost every payment provider boasts high uptimes, but few solutions offer consistent transaction reliability. Many enterprises will settle for low-cost payment providers that turn an immediate profit, but limit their operational exposure during the payment process. Solutions that include redundant payment networks or direct connectivity within the markets they serve provide significant added value in terms of service delivery, better pricing and market expansion options, especially for global businesses hoping to establish themselves in the long-term.

For these reasons, Rapyd’s FinTech-as-a-service platform reliably supports a high volume of networks per country. This ensures your operation can serve the widest range of potential customers without the fear of financial, reputational, and brand risks that accompany unreliable payment experiences.

Subpar user experiences
User experience is one element that can make or break any enterprise, including FinTech. Within the payment delivery market alone, it remains the highest barrier to both consumer adoption and transaction completion rates. This trend is driving large online platforms, marketplaces, and lenders to design their own payment experiences by leveraging platforms that provide flexibility, depth, and reliability.

Many enterprises are trying to strike a middle ground with third-party SDKs, APIs, and web services that allow them to deliver a controlled user experience without designing network infrastructure from the ground up. Being able to control each element of a user’s experience while taking advantage of robust customized software is exactly what Rapyd’s FinTech-as-a-service platform was designed for.

Transacting globally without an entity
There are many commercial enterprises looking to operate within a single country. Others want to increase their customer base by crossing borders. Both circumstances require different payment solutions, but increasingly, the majority of enterprises are aiming for a global reach.

Traditionally, operating in new countries requires you to create new business entities that can legally operate in each region. This ensures that each entity is following local compliance regulations even if its head office is elsewhere. Setting up each new operation is a costly endeavour, requiring overhead to hire full-time staff and researchers. This is especially challenging for smaller enterprises, who likely don’t have the resources to make this option viable.

A modern FinTech business should be able to help you resolve this challenge by joining you as a partner. Payment providers often have already developed the necessary infrastructure for cross-border transactions. This enables you to complete transactions locally without creating a new entity, while leveraging a platform that scales globally to your scope of operations. Rapyd is a prime example, enabling commercial enterprises to quickly scale payments across over 100 countries. If you have a multi-country, multi-year payment vision, globally scalable FinTech partners can make it a reality.

Legacy Challenges
While our previous entries addressed contemporary challenges to your operation, legacy financial systems pose challenges of their own. Many providers seek to integrate with legacy services like banks, but these processes are often not designed to support digital ecosystems or real-time transactions. When working with legacy systems, you’ll need to take several steps to ensure your financial platform, local operations, and user experiences don’t falter while completing transactions.

Rapyd’s 2019 Global Digital Payments Guide highlights a few central categories for enterprises to keep in mind:

• Multi-partner implementations: Managing per partner, per country, and per transaction type becomes difficult to track and operate at scale. Solutions that offer simplified, transaction-based pricing have an advantage on this front.
• Building local entities: Setting up local payment entities in each country increases costs and takes time. It’s crucial to partner with an appropriately licensed entity that supports regulatory compliance.
• Managing multiple user experiences: Payment providers often need to deploy multiple user experiences depending on the country and preferred transaction type. Thankfully, solutions with a single API architecture are still equipped to support global transaction payment processing.

To overcome all challenges — legacy or contemporary — you must create a global payments strategy that manages these core operational elements. You’ll need to account for preferred approaches to digital payments, cross-border payment pricing, and partnerships that deliver local payments. Modern FinTech businesses have come a long way in helping commercial enterprises achieve their goals, but that only occurs once clear payment objectives have been established.

On the other side of the coin, modern FinTech is undergoing a worldwide renaissance, bringing a variety of previously novel solutions within reach for all types of commercial entities. To learn more about the latest opportunities FinTech is affording tech-forward businesses, read our article “8 Digital Payment Trends To Follow In 2019”.

These are just a few of the actionable insights you’ll find in our 2019 Global Digital Payments Guide. To find out more about what FinTech-as-a-Service platforms can accomplish in local and cross-border digital payments, download the full guide today.