Jens Podewski: Standing out in the Payments Industry

“The only constant in life is change” – this quote from the Greek philosopher Heraclitus applies perfectly for the Payments industry. There are so many technological, regulatory, and market changes happening, that the industry is ripe with opportunity and growth potential.

Among the major industry developments and trends we are seeing the shift towards Open Banking, the increased usage of Instant Payments, the rise of online-only business banking, the growing popularity of alternative payment methods, and the advent of BigTech in the Payments space. Innovation is prevalent throughout all of these areas within the industry,

Innovators, regardless of the industry, will always have a competitive advantage, but innovation is happening so fast in the Fintech industry that it is increasingly hard to consistently be a pioneer. This applies to both smaller firms as well as to the industry’s unicorns.

However, it’s important to remember that apart from innovation, there are other business priorities that are just as important. For example, customer service, data security, compliance, and branding can all present diverse opportunities for a company to differentiate itself and stand out in the marketplace.

At Paymentworld Europe Ltd., one of our highest strategic priorities that has always driven our work is the importance of maintaining a top quality customer experience. The company was founded in 2014 by myself and Stefan Haenel, and we have always given a lot of importance to understanding the details behind our customers’ payment requirements so that we may offer the right solution, whether that is an off-the-shelf product or a custom-designed service. This approach to serving our clients is necessary in our marketplace as the payment requirements of businesses are sometimes unique, and at other times, unplanned.

Paymentworld Europe Ltd. works mostly with small to medium sized enterprises in Europe, across several sectors from established gaming companies to leading marketing agencies. The company is selective about whom it works with, in order to ensure it remains compliant with the strict regulations relating to the Prevention of Money Laundering and the Financing of Terrorism. This allows the company to provide its business clients with the necessary peace of mind that comes with knowing that their payment service provider (PSP) is not struck with sanctions, or even with the suspension of its license as a financial institution. Unfortunately, when this happens it is not just the PSP that suffers but also the institutions’ clients.

Since Paymentworld Europe has now been operating for several years, the company has built up a product portfolio made up of several solutions. One of our most sought-after services is IBAN4U, a service that provides clients with an online payment account that comes with a unique international bank account number (IBAN), that may also be personalized. The special thing about this service is that we are able to open an account for our corporate clients within just a few days, whereas in certain circumstances traditional banks normally take several weeks or months. The account is similar to a normal bank account in that it can be accessed 24/7 online. Furthermore, clients can take advantage of other features such the ability make batch payments, execute payments around the world, and enjoy 100% deposit protection.

Another significant service that we offer is the processing of Single European Payment Area (SEPA) Direct Debit payments for our clients. SEPA Direct Debit is an increasingly popular standardized payment method within the EU and six other European countries. It is ideal for recurring payments as it is a ‘pull payment method’, which means that our clients can directly charge their customers’ bank accounts, provided they have the mandate to do so. Through this service, our clients benefit from reduced churn and increased cashflow as a result of receiving payments faster.

Even though we are a payments company, one of our main call to actions is as follows: ‘Unlock new payment opportunities to grow your business’. That’s because we believe a company’s payment systems are an enabler for its growth. For example, one of our solutions is a payment gateway that makes over 350 payment methods available to the merchant. By offering a variety of payment methods, buyers are able to pay using their preferred payment method and merchants can increase their shopping bag conversion rates thus resulting in higher sales.

In order to offer a secure, reliable and efficient service to our clients, it is necessary for us to continuously invest in our infrastructure. Just this year we replaced our previous core banking system with Oracle Flexcube, a best-in-class system that is used by leading banks worldwide. With Oracle Flexcube, Paymentworld will improve its operational efficiency, reduce time to market for upcoming products, and it will also greatly expand the company’s Open Banking capabilities.

This year, the company has also invested in a new KYC and customer onboarding software that makes the application process for our clients digital and more user-friendly. This is a significant challenge for many payment service providers as the customer application process can be quite long and thorough, as it involves filling in information and submitting documentation about not just the company but also its directors, shareholders, and ultimate beneficiary owners.

Continually investing in the company’s technological infrastructure is necessary to ensure the future growth of the company. However, it is not enough, and that is why Paymentworld Europe is also growing its team. With a headcount of 20 people, the company is opening up several new positions in 2021 in order to keep up with the client intake whilst continuously striving to raise standards.

In 2021, Paymentworld Europe will be releasing new products and entering new markets whilst further establishing its reputation as a trustworthy and customer-focused payments partner.