The Paytech Show is back and this time Kirill Lisitsyn from Torus, Nurlan Zhagiparov from DNA Payments and Tommaso Ulissi from Nexi Group discuss the transparency of fees in the payments value chain, and how unique local payment methods are changing the way we pay.

Rising processing costs and regulatory pressures mean things are tough for merchants and acquirers alike. Innovative, omnichannel solutions and technology-driven efficiency are needed to meet the demand. Find out how these industry leaders are approaching the challenge.

Complex Card Transactions and Fee Transparency

Kirill Lisitsyn, co-founder and CEO of Torus, believes there is a need for greater transparency in card transaction fees. It’s a significant issue for both payment players and merchants and isn’t always touched upon.

As cashless payments grow, merchants face increased costs from processing fees, primarily driven by interchange and scheme fees, which are often opaque. The UK’s payment services regulator found Mastercard and Visa increased their scheme and processing fees by more than 30% over the past five years. Lisitsyn explains that merchants struggle to understand these fees, which are passed along the value chain with added margins, often resulting in confusion or distrust. This lack of clarity strains relationships between merchants and acquirers, as merchants suspect potential overcharging while acquirers grapple with unpredictable fees from card schemes.

The booming card payment industry adds another layer of complexity. Although the market sees stable double-digit growth, competition remains fierce, particularly in e-commerce, leading to squeezed margins. To stay profitable, acquirers must finely tune their understanding of revenue and cost drivers. However, limited control over these costs—particularly scheme fees—makes it challenging. Tools like those Torus offers aim to provide payment companies with insights to better predict, analyze, and optimize these fees, ultimately helping them deliver fair pricing and build stronger partnerships with merchants.

Challenges of Supporting European Merchants

Nurlan Zhagiparov, co-founder of DNA Payments, adds further context to the hurdles European merchants face, particularly around funding. He points out that many merchants also struggle to access capital due to market fluctuations and rising borrowing costs, pushing payments companies to consider incorporating lending solutions. By facilitating lending, payment firms can not only enhance merchant support but also diversify their offerings in a competitive market.

Zhagiparov also emphasizes the importance of operational efficiency in an environment of rising labor costs and demand for multiple payment methods. To stay viable, payment providers must streamline operations, reduce costs, and support an increasingly varied range of payment options to meet European merchants’ needs. He observes that more players are adopting omnichannel solutions—platforms that seamlessly combine in-store and online payment capabilities. Such solutions provide merchants with the flexibility they need while enabling payment providers to keep costs down.

Adapting To The Local Market

Tommaso Ulissi, Group Head of Strategy and Transformation at Nexi Group, highlights the significance of adapting to local preferences. Each market presents unique payment methods, regulatory demands, and customer expectations, all of which must be factored into a payment provider’s strategy. Local adaptation not only supports compliance but also resonates with merchants’ needs for effective, relevant payment solutions, helping them succeed in their own markets.

Alternative Payment Methods (APMs) continue to grow, spurred on by global and post-pandemic shifts. However, despite predictions about the “death of cards,” Lisitsyn argues that cards remain dominant in most markets. While APMs have seen success, particularly by capturing a share of cash transactions, they have not yet outpaced card usage. This ongoing evolution of payment preferences means that while payment providers must keep pace with trends, cards will likely continue to play a central role.

Regulatory Pressures and Market Consolidation

The other major mover is the tightening of regulatory environments. Zhagiparov notes that Open Banking initiatives are increasingly becoming a popular payment method. These regulations, along with market consolidation through mergers and acquisitions, are reshaping the payment landscape, offering cost savings and efficiency. He observes a clear shift from traditional banks to tech-driven payment providers. Many banks are divesting from payment processing to focus on core banking services, opening up opportunities for tech-forward companies to step in with modern, often cloud-based, solutions.

Merchants, for their part, are urged to remain vigilant about payment pricing, advocating for transparency to avoid hidden costs and complex pricing structures. This transparency push is in line with broader industry trends, where merchants are increasingly demanding straightforward and competitive solutions from their providers.

Enhancing Innovation Across the Payment Value Chain

Of course, there’s rarely a one size fits all solution. Due to the multifaceted nature of the ecosystem, no single player can serve all needs. From terminal management and authentication to routing and processing, the chain is highly segmented, necessitating a cooperative approach to innovation. For merchants to benefit, innovation must be scalable and tailored to practical use, with solutions designed to enhance conversion rates and make transactions smoother. By delivering cutting-edge solutions across the value chain, providers can add value and ensure fair remuneration for each participant.

Lisitsyn further discusses how Torus’s globally scalable platform integrates with card scheme data, offering tailored insights for issuers, acquirers, and e-commerce acquirers alike. The approach aims to empower payment players to expand without sacrificing focus, supporting their growth while addressing their specific challenges in various regions.

Watch the episode to find out more, and stay tuned to further episodes of The Paytech Show on our website.

The post Transparency in the Payments Value Chain | Nexi Group, Torus, DNA Payments | The Paytech Show #83 appeared first on FF News | Fintech Finance.

Payments orchestration presents a way forward for helping merchants and banks tackle the ever widening payments ecosystem.

In the latest episode of The Paytech Show we speak to Tom Voaden, VP of Commercial at BR-DGE, who discusses how they’re addressing gaps in traditional acquiring banks’ technology.

It’s an interesting look at how data could enable both merchants and banks to optimize their payment ecosystems and leverage actionable insights for improved service delivery.

Bridging the technology gap

Over the past few years, BR-DGE have worked directly with enterprise merchants, serving as an intermediary between them and their traditional acquiring banking partners. In this episode, Voaden goes on to explain how the role of BR-DGE has grown due to the gaps in technology offered by traditional banks. With many new payment methods emerging merchants need better systems. BR-DGE’s orchestration platform now allows merchants to enhance their payment processes without needing to switch from their traditional banks.

Interestingly, Voaden highlights how this need to solve technical challenges led to a shift in the dynamic between BR-DGE and acquiring banks. Initially focused on merchant needs, BR-DGE began working with banks directly, providing orchestration solutions that helped them stay competitive in a fast-changing market. Banks are under pressure from new fintech entrants like Stripe and Adyen, who offer cutting-edge technology. At the same time, regulatory requirements like PSD2 and the forthcoming PSD3 have consumed significant development resources, leaving traditional banks struggling to keep up with innovation. 

This is where BR-DGE comes in. Benefits of their orchestration platform include helping banks route transactions across different endpoints or integrate network token solutions, ultimately supporting them in modernizing their legacy tech stacks.

The key to payments orchestration

A major takeaway from Voaden’s discussion is the versatility of orchestration platforms. While many view them as all-encompassing solutions, he emphasizes that orchestration can be modular. BR-DGE’s platform can seamlessly integrate with a bank’s existing front end or even sit behind their gateway infrastructure, tackling specific pain points without requiring a full-scale transformation. As is often needed this flexibility allows acquiring banks to take a step-by-step approach to improving their payment systems.

BR-DGE also have a white-label offering, enabling banks to rebrand and customize the orchestration platform. By doing so, banks can maintain control over the user experience, offering their merchant customers a tailored interface while relying on BR-DGE’s core technology for routing, tokenization, and data management. This white-label solution has allowed BR-DGE to scale its offerings, allowing banks to onboard merchants rapidly via API.

The data within

Voaden also touches on how orchestration provides a more holistic view of the merchant’s payment ecosystem. Traditionally, merchants had to manage multiple tools—fraud prevention, alternative payment methods (APMs), and acquirers—across different platforms, resulting in fragmented data. With orchestration, all relevant data is unified in one place, benefiting both merchants and acquirers. This integrated data enables acquirers to assess the performance of APMs and fraud tools in a 360-degree manner, allowing them to adjust their offerings to better serve merchants. Getting independent analysis and actionable insights of customer and merchant data is undeniably the future of payments. 

There’s an increased level of trust in orchestration across the ecosystem and Voaden is particularly bullish about the potential of data generated through orchestration. As transaction volumes grow, so does the data available for analysis, offering valuable insights into the performance of various payment channels, geographies, and transaction types. This data not only benefits merchants but also helps banks benchmark their performance, refine their strategies, and improve their services. Voaden envisions that data will become one of the most valuable aspects of payment orchestration, as it allows for more informed decision-making and enhanced partnerships between merchants, PSPs, and acquirers.

It’s a really interesting look at a growing area, one which will be around for years to come. To catch more episodes like this, head to our website.

The post The Transaction Symphony: Staying Competitive with Payments Orchestration | BR-DGE | The Paytech Show #82 appeared first on FF News | Fintech Finance.

In this episode we speak to Noah Sharp, CEO of Vodeno, and Neil Chandler, CEO of Aion Bank, to find out how Vodeno’s unique platform works alongside Aion Bank’s ECB license to enable non-financial companies to offer banking services without regulatory burdens.

Below you’ll read more about their thoughts on where BaaS is heading and the potential for embedded banking to meet modern digital needs.

The ultimate bank and technology combination

In this episode we delve into the intricacies of Banking as a Service (BaaS) and the specific approach that our interviewees have taken. Sharp explains Vodeno’s unique positioning as a robust BaaS and embedded finance platform built entirely on the cloud and a private blockchain, where the ledger is managed by smart contracts.

Not only that but their platform is complemented by Aion, a regulated bank based in Belgium, a tier-one regulatory jurisdiction, facilitating the distribution of regulated services and ensuring compliance. This combination allows Vodeno to serve both non-financial companies looking to offer financial services without becoming regulated entities and regulated firms needing specific solutions without the full regulatory burden.

To explain more, Chandler emphasizes how important regulatory compliance is and points out that many BaaS providers face challenges because they underestimate the importance of regulation. Our guests avoid this pitfall by being intrinsically connected, with Aion Bank’s full banking license ensuring that regulatory obligations are taken seriously.

Embedded banking is the future

The show also addresses current issues in the payments industry, such as challenges around cross-border payments in continental Europe. Unlike the UK, where open banking and instant payment schemes like Faster Payments facilitate efficient domestic transactions, Europe struggles with varied API robustness and cross-border payment complexities.

Companies must often adopt localized approaches to handle payments effectively, which complicates centralization efforts. Here, BaaS providers play a crucial role, offering more comprehensive financial services than simple payment service providers (PSPs), especially when deeper financial functionalities such as credit lending or deposit protection are required.

Embedded banking, or embedded financing, is highlighted as a customer-centric approach, operating on a B2B2C model. This means the bank’s products are designed to meet the end customer’s needs, often delivered through retailers or marketplaces.

For example, customers don’t want a Buy Now, Pay Later (BNPL) service for its own sake; they want the product it helps them acquire. Aion Bank and Vodeno understand this dynamic, focusing on providing digital experiences that align with customer desires. It’s an informative episode that also includes thoughts from Chandler on what the future holds for BaaS, so be sure to tune in above.

The post The True Power of BaaS and Embedded Finance | Vodeno and Aion Bank | The Paytech Show #81 appeared first on FF News | Fintech Finance.

We hear about the successful integration of digital and physical banking solutions and the implementation of BPC’s seamless card issuance.

The story of TymeBank itself is also inspiring and shows incredible growth delivering services to an underserved population. In this great episode we hear about the factors that have made that happen from cloud scalability and collaboration.

Driving financial inclusion with technology

BPC Chief Commercial Officer, Grant Truter, talks about how their partnership with TymeBank allowed them to realise their vision of merging digital and in person banking experiences. Their omni-channel solution would include self-service channels for customers and allow them to build a digital bank from the ground up, with BPC providing the necessary technological backbone. It’s a classic case of a technology partner making a vision happen.

Bruce Paveley, CTO of TymeBank, elaborates on their history and mission. From beginning as a money remittance service they evolved into a full-fledged banking platform about seven years ago. High banking fees have excluded many South Africans from financial services which is what they wanted to address. In a cash heavy society wanted to build trust in other forms of banking and payment, through reliable and always-available systems. This is where BPC’s SmartVista platform came in, along with the technical support they can offer.

That’s not it however. We also get insight from Dieter Botha, Group CTO for Tyme, who provides a broader perspective on TymeBank’s operational strategy and future plans. TymeBank was their first bank and they’ve since developed another in the Philippines.

Botha notes that TymeBank’s approach involves building and operating banks profitably, and after their current successes they’re now eyeing Vietnam for further expansion. Botha introduces the concept of “phygital,” combining physical and digital elements to enhance customer engagement. In South Africa, that means employing self-service kiosks in retail stores, allowing customers to open bank accounts and receive personalised Visa debit cards within minutes, facilitated by biometric verification.

This model has been successful, with TymeBank issuing approximately 500,000 cards per month across its operations in South Africa and the Philippines.

The interview is a perfect example of a partnership that has successfully blended advanced digital technologies with practical physical solutions to drive financial inclusion. In the areas they operate this is ground breaking. Tune in to find out more and see how this could be replicated elsewhere.

If you would like to learn more about the BPC x TymeBank case study – read the full story here.

The post Securing a Financial Future, With Next Gen Banking Technology | BPC and TymeBank | The Paytech Show #80 appeared first on FF News | Fintech Finance.

In this latest installment of the Paytech Show, we have the privilege of hearing from industry experts who give us an insight into the impact it’s had. 

Anu Somani, Senior Vice President at U.S. Bank, Nick Botha representing AutoRek, and Minal Gupta from Star One Credit Union all explore the landscape of FedNow’s impact in the United States, shedding light on the critical factors banks must consider to unlock its full potential.

According to some sources, FedNow has not been a resounding success, but its user base has undoubtedly grown significantly and the pioneering financial institutions we spoke to attest to it being a game changer. Our show above includes ‘real-time’ perspectives on this ever-evolving area of payments.

Nick Botha draws attention to one key strength of FedNow: it has the backing of the Federal Reserve. With FedNow already operational in over 464 financial institutions across the US, Botha underscores the importance of this endorsement in instilling confidence and catalyzing adoption among banks and financial institutions nationwide.

Minal Gupta and Anu Somani enrich the conversation with their firsthand experiences and observations of the new FedNow system. Star One Credit Union, where Gupta is SVP, have been vocal about their support of FedNow. Both these banking experts emphasize the critical role of streamlining reconciliation processes, highlighting its significance in ensuring operational efficiency and seamless integration of FedNow into existing banking infrastructures. Somani in particular stresses that payments transformation needs to be thought about holistically. 

Their insights offer valuable guidance for banks seeking to maximize the benefits of FedNow implementation.

To add to this, Botha delves into the transformative potential of automation in optimizing banking processes and unlocking new revenue streams. It’s clear that liquidity is a major concern for anyone going on the journey of instant payments, and it’s here that automation plays a key role. 

It’s one of the reasons why AutoRek has been selected as part of the FedNow service provider showcase which has been put together to give these providers an opportunity to connect with institutions and banks looking to implement instant payment products into their offering.  

Join us as we delve deeper into the implications of FedNow for US banks, exploring strategies for success and navigating the complexities of this groundbreaking era in payment technology.

The post The Paytech Show #79: What’s next for US banks in the FedNow era? appeared first on FF News | Fintech Finance.

The post The Paytech Show #78: Are Banks Ready For The American Payments Revolution? With Volante Technologies and Bank of America. appeared first on FF News | Fintech Finance.

Along with his colleague Hean, they both speak about how Bottomline help them to access the Swift network and stay compliant with ISO 20022. Kong, who helps lead Bottomline’s efforts in Cambodia helps to paint a broader picture of the country’s financial ecosystem, pointing out that around 50% of commercial banks there, partner with them to deliver payments services.

The post The Paytech Show #77: How Cambodia’s Biggest Banks are Accessing Swift and Crossing Borders. With ABA Bank and Bottomline. appeared first on FF News | Fintech Finance.

Saly Lor began his journey with J Trust Royal Bank in 2005, steadily progressing through various roles until he took on the position of COO in 2019. His extensive experience encompasses overseeing institutional operations, personal banking, property and administrative functions, as well as central operations.

Under his leadership, the bank handles crucial aspects such as reconciliation, analytics and information management, project management, and transformation initiatives.

Lor provided an insightful overview of the rapid evolution of Cambodia’s banking ecosystem over recent years. Recognized as an emerging financial market, Cambodia has witnessed significant growth in deposits, assets, lending, and both domestic and international payments. New players have entered the market, and there has been a marked shift in consumer behavior, with an increasing number of people integrating banking into their daily lives and business transactions.

One of the most notable trends Lor highlighted is the transition from traditional to digital banking. Consumers in Cambodia are now embracing mobile banking, foreign payments, and QR code scanning, moving away from conventional banking methods. This shift is driven by several factors, including political and socio-economic stability, technological advancements, and the impact of the COVID-19 pandemic, which accelerated the adoption of digital banking solutions.

Discussing the future of banking in Cambodia, Lor emphasized the country’s favorable conditions for growth. With a young and dynamic workforce, a median age of 26, and a strategic geographic location at the heart of Southeast Asia, Cambodia offers significant opportunities for banks and fintech companies. The nation is projected to continue its robust economic growth, with a 5.6% increase anticipated in 2023 despite global geopolitical tensions.

Lor pointed out that while banking activity has increased, there remains a substantial unbanked population, presenting a significant opportunity for financial institutions to expand their reach. Additionally, there is a segment of wealthy senior clients who prefer traditional banking methods and represent another potential market for banks to educate and transition to modern banking services.

The competition in Cambodia’s banking sector is intense, with a mix of large and small banks vying for market share. This competitive landscape drives innovation and investment in sophisticated technologies, although the pace of development can vary depending on the scale of the bank’s operations.

Lor also discussed the importance of cross-border payments, noting the increasing volume of imports and exports and the growing demand for efficient, real-time, and low-cost international payment solutions. The National Bank of Cambodia has been proactive in facilitating both domestic and cross-border payments, launching initiatives like the cross-border QR code system in collaboration with regional partners.

Emphasizing the significance of adopting international standards, Lor highlighted J Trust Royal Bank’s early move towards ISO 20022 compliance. This global standard for electronic data interchange between financial institutions enhances processing, reporting, and reconciliation capabilities. By adopting ISO 20022 ahead of the 2025 deadline, J Trust Royal Bank aims to ensure a smooth transition, minimize risks, and provide seamless services to its customers.

Looking ahead to 2025, Lor envisions a continued positive trajectory for Cambodia’s banking and cross-border payment sectors. He anticipates that customer expectations will drive further advancements, with real-time, low-cost, and predictable transactions becoming the norm. Banks will need to be agile and invest in infrastructure to meet these demands, demonstrating a commitment to thriving alongside their customers.

In conclusion, Saly Lor’s insights offer a comprehensive view of the transformative changes occurring in Cambodia’s banking sector. J Trust Royal Bank is poised to leverage these opportunities, driven by a customer-centric approach and a commitment to technological advancement, positioning itself as a leader in the evolving financial landscape of Cambodia.

The post The Banking Revolution in Cambodia: An Interview with Saly Lor of J Trust Royal Bank appeared first on FF News | Fintech Finance.

Chaitantipong shares research that shows the biggest payments pain points facing banks, which includes 35% saying they lack visibility of payment status. Of course, ISO 20022 will help to alleviate this but he also explores the work they’re doing during the current coexistence period.

The post The Paytech Show #76: ISO 20022 Payments Visibility Will Change the Game for Cambodian Payments with J Trust Royal and Bottomline appeared first on FF News | Fintech Finance.