Over the past few years, fintech startups in Europe have reached a level of development that has allowed them to seriously compete with traditional banks. For decades, the payment market in Britain was dominated by several financial giants, but the emergence of digital financial services has changed the situation.
New players in the British market have rolled out new tools for international business that greatly simplify the control of transnational money flows and increase payment security. Fintech companies not only provide clients with attractive terms for opening and using accounts, but also help with bookkeeping, provide acquisition services, and simplify business processes.
A representative of Payrow, a British fintech startup, spoke with us about the business opportunities offered by modern payment systems and their advantages over traditional financial institutions.
Digital financial services vs. traditional banks
Fintech companies provide virtually the same services as traditional banking institutions, including deposits, settlement transactions, international transfers, and lending. Unlike banks, however, the procedure for opening an account with a payment service provider involves significantly less bureaucracy and can be done remotely and quickly.
The following infographic shows how payment systems stack up with traditional banks.
Digital financial services for businesses
New payment systems accounts are usually opened in order to diversify cash flows, gain access to new services, and increase confidentiality. Additionally, many companies have come to rely upon fintech because they have allowed them to speed up international payments and conduct operations with cryptocurrency.
Consider the list of features and benefits for digital financial services users provided by Payrow.
Access to individual IBAN accounts
Most payment systems accounts have an IBAN identification number enabling international payments. This provides account access to various payment gateways, just like a regular bank account. Clients and partners will not even realize that the company has opened an account outside of the bank because nothing changes on their end; they are still sending money to an account with the same number as a regular bank account operating in the SEPA sphere.
Another advantage of digital financial services is the speed at which they can process transactions. Unlike bank transfers, which can take several days, fintech platforms can process transactions instantly.
Remote account opening
Almost all payment systems allow you to open an account remotely, without a personal visit. In some cases, you will need to go through an interview, most often via a messenger.
Low commissions on payments
The right service allows you to save on transactions. When choosing a digital financial service for business, you should clearly understand which option is best for you: a service with initially low transfer fees or one with a slightly higher fee but lower monthly maintenance cost. Payrow guarantees transparent pricing and no hidden fees on payments.
Multi-currency payment processing allows you to accept credit and debit card payments from customers in foreign currencies. Payment systems make it easier to access international markets.
A number of fintech platforms provide corporate card options for their clients when registering. Corporate card accounts allow company employees to manage their business and travel expenses, among other things. They also allow you to view card statements and set limits on how much employees can withdraw with their cards. For example, Payrow allows you to set card limits, identify and enable/disable certain payment categories, set time and location limits on purchases, and take care of accounting in real-time.
Acceptance of several payment methods
Usually integrating payment options such as e-wallets, mobile and online banking, and debit and credit cards can incur additional costs. With digital financial services, you can add them to your business account for free.
A challenge facing entrepreneurs is understanding where and how much money they’ve spent and how to correctly fill out the documents about their expenses. Payrow allows you to save time and avoid mistakes with automated accounting and management services, along with ready-made automated receipt recognition.
Online bill payment helps companies save time and simplifies accounting for customers. Payment systems help reduce the excessive costs associated with physical transactions.
For example, Payrow simplifies the process of invoicing for business and provides convenient ready-made customisable templates that you can use as a basis for invoices. Customers can pay for incoming invoices directly from your Payrow account without extra transfers between accounts. Payrow’s transaction scheduler helps schedule upcoming payments and manage recurring payments easily.
To improve security, Payrow uses the new 3d secure v.2 protocol which provides cardholders with a fast, easy, and convenient authentication process. With 3d secure v.2, the method of payer authentication has changed. Now, it is not only done via SMS verification but also with additional authentication methods, including those that can be performed without the active participation of the user.