Fast and frictionless: How EBANX is looking to carve its niche in the intricate world of payments

Paula Bellizia EBANX

As the world of digital payments evolves at a rapid pace, companies such as EBANX see immense potential in emerging markets such as India and Latin America to drive inclusive and prosperous digital transformations.

Elaborating on this, Paula Bellizia,  president of global payments, and Andre Allain, vice president of global expansion and market development at EBANX,  join The Digital Banker to discuss the global payments landscape, the “demographic goldmine” that emerging markets are, and how EBANX’s offerings line up to tap into this potential.

TDB: What problems is EBANX looking to solve in the payments industry?

Paula Bellizia: In the dynamic landscape of global e-commerce, EBANX recognizes several key challenges businesses face, particularly those expanding into rising markets. One primary hurdle is ensuring accessibility for new customers. Consumer payment preferences vary greatly on a regional basis. In established economies, credit cards might be the dominant payment method, while digital wallets or even cash payments might be more prevalent in developing markets. EBANX addresses this challenge by providing a comprehensive suite of local payment method integrations, ensuring businesses can seamlessly accept payments regardless of their customers’ location or preferred payment method.

A second major pain point for businesses venturing into new markets involves the complexities of cross-border transactions. Different countries have varying situations and navigating these intricacies can be a significant obstacle. EBANX alleviates this burden by offering a streamlined one-stop solution for all payment processing needs. Our platform ensures compliance with local regulations and facilitates both pay-in and payout efficiently, collecting payments locally and settling money globally.

Beyond core payment processing, EBANX recognizes the additional challenges faced by businesses entering new markets. Understanding local consumer behavior and navigating unfamiliar regulatory environments can be daunting tasks. EBANX mitigates these difficulties by providing valuable market insights and strategic guidance. Our team leverages its extensive experience in rising markets to help businesses navigate these complexities and ensure a smooth market entry.

TDB: Is there a specific reason why you’re targeting emerging countries for your offerings – Latin America, Africa, India? What potential do you see here?

Andre Allain: Innovation comes from unsatisfied demands. Environments that are full of challenges, such as emerging economies in Africa, Latin America, and Asia, demand innovative and efficient solutions to resolve these challenges. Furthermore, it is important that these solutions are created urgently and quickly. This is why rising markets are at the forefront of innovation: they know their needs, they are highly digital and inventive, and they create solutions at a fast pace. The same goes for the payments industry in rising markets, where innovation results in inclusive, low-cost, and high-performing solutions.

The EBANX “Beyond Borders 2024” report highlights a demographic goldmine – a massive influx of new consumers entering the digital market in these regions. India leads the charge, projected to add a staggering 34 million new consumers in 2024 alone, representing nearly a third of the global total. This influx of tech-savvy individuals eager to participate in e-commerce paints a vivid picture of the immense potential these emerging regions hold.

The report also reveals that digital commerce growth in these regions outpaces established markets. While mature economies see a growth rate of around 13%, rising economies are experiencing a surge of 20%. This translates to a digital commerce market in Latin America and Africa projected to surpass a staggering $1 trillion by 2026, with India exceeding $275 billion, according to Payments and Commerce Market Intelligence (PCMI). EBANX recognizes the immense potential for businesses to capitalize on this digital commerce boom.

TDB: As the payments industry is evolving, so is the nature of fraud with it becoming increasingly sophisticated. How does EBANX work towards tackling fraud?

Andre: The world of finance is constantly evolving, and so are the tactics of fraudsters. At EBANX, we understand that a one-size-fits-all approach simply won’t cut it, especially in the complexities of rising markets. That’s why we’ve developed a multi-layered fraud and risk management solution specifically designed to combat sophisticated schemes in these dynamic economies.

Our solution utilizes real-time machine learning that analyzes a vast amount of data – over 100 factors to be exact. This includes behavior combinations, local data, and parameter crossing. This powerful algorithm assigns a risk score to each transaction, allowing us to identify suspicious activity immediately.

We also recognize that fraudsters don’t target all industries the same way. Our system is smart enough to tailor its approach based on the business models. For example, subscription services might face different fraud patterns compared to online travel bookings. For high-risk transactions, let’s say in the digital goods industry, we can automatically trigger manual review by our team of fraud specialists.

TDB: What trends are you noticing in the payments space? 

Paula: We see some fascinating trends emerging in the payments space, particularly within rising markets.

While consumer payments have largely embraced digital solutions, B2B transactions are lagging behind. However, there’s a surge in companies across rising markets buying and selling online, and the demand for modernized B2B payments is rapidly growing. Businesses are tired of limited payment options, foreign currency hassles, slow invoicing processes, and high fees. This is driving the need for B2B payments to catch up with their B2C counterparts, becoming more user-friendly, faster, and integrated with everyday business practices.

The rise of B2B marketplaces is a significant factor pushing digital business payments in rising markets. This is especially true for cross-border transactions, where regions like North America, China, and Europe are leading trade partners.

The evolution of alternative payment methods aims to bridge the gap for individuals who lack access to traditional credit cards. However, there’s a critical need to expand the scope of recurring payments, especially in rising markets with limited credit card penetration.

Also, rising markets are at the forefront of pioneering instant transfer systems. The success stories of Pix in Brazil and UPI in India have positioned these countries as global leaders in digital payments and financial inclusion. This trend is inspiring other nations to embark on similar journeys. The rapid adoption of these instant transfer systems is fueled by factors like zero-cost services for consumers and minimal charges for merchants. This strategy not only accelerates the growth of digital commerce but also empowers people without credit cards to participate in the online economy.

Overall, the focus on B2B payment modernization, the rise of alternative payment methods catering to recurring transactions, and the dominance of instant transfers in rising markets paint a fascinating picture. These trends highlight the immense potential for a more inclusive and accessible digital economy on a global scale.

TDB: What is next in the pipeline for EBANX?

Andre: We recognize the immense growth potential across Asia and Africa, and our future plans involve these burgeoning markets. Recent engagements at events in the regions have provided us with valuable insights, and we’re actively exploring opportunities in these rising markets. Our sights are set on the broader Asian landscape, but I’d like to take this opportunity to talk about our recent business development in India. Our approach is holistic, with India as our initial foothold. EBANX entered the Indian market in 2023 and is now deeply invested in India’s digital transformation, and the phenomenal success of UPI is a major reason for our excitement.

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