Cross-border payment service with a difference: FinXP CEO on firm’s latest ‘easy to deal with’ solution

FinXP has handled billions in payments for thousands of clients since 2015. Indeed, the FinTech company has evolved its offering considerably since it opened its doors, and though it has been an adventurous ride, the company is more than convinced that coming to Malta was the right move.

“We have grown from the modest seven-person start-up we kicked off with in our old offices in Pietà. Today, with a team of around 45 people in multiple countries, we are proud to launch an ambitious product that will revolutionise the way our clients use FinTech services,” says Jens Podewski, FinXP CEO.

FinXP is launching a new cross-border payment service that simplifies the payout process for companies in iGaming and beyond. The new service will handle a variety of currencies, with payments being made in over 100 countries around the globe.

“The ground-breaking aspect of this new cross-border payment service is that it will consolidate the different payout services a typical client would require into one ‘easy-to-deal-with’ solution,” Jens explains. “Whereas previously a client would have needed to use various financial institutions and banks to process payments in determinate currencies, the new service by FinXP will cater for all of these, seamlessly and easily.”

In tandem with FinXP’s flagship product, IBAN4U, a dedicated Euro IBAN account service, the cross-border payment service can really make a difference for clients when compared to existing solutions on the market, Jens attests. IBAN4U is required to use the new cross-border payment service and together, both solutions are touted to set FinXP as the favourable choice in the highly competitive landscape of account pay-ins and payouts, as they do away with the need for multiple service providers.

Although the new service is relevant to any company that makes payouts, thanks to the vast experience FinXP has gained by working closely with the iGaming industry, it has designed its new cross-border payment service to fit the industry’s needs like a glove.

“We have evolved as a financial institution alongside iGaming operators. We have grown with them and know the pain points they experience in their daily operations. That is why we feel that we are in an optimal position to help make their lives simpler. Normally, they would need to use multiple service providers to affect their payouts, depending on whether they would be using wire transfers or cards, or a variety of other methods. With our new service this will be a matter of the past,” Jens elaborates.

In fact, FinXP’s new cross-border payment service is credited with saving time and reducing costs considerably for the user, since it will do away with several ‘middlemen’. Moreover, since client accounts are issued directly and exclusively with FinXP, risk is considerably reduced. “Having no third-party banks acting as intermediaries means that risks of client accounts being frozen or closed by financial institutions that might not have a direct relationship with the client, are completely eliminated.”

“We are aware that there are numerous payment providers on the market, so we wanted to come up with something truly innovative that would differentiate us in the current landscape. Our cross-border payment service will have a simple fee structure that will be considerably cheaper than other existing solutions clients may be using. Moreover, since FinXP will be taking care of the entire process from beginning to end, it will also result in a faster service to clients, making them even more competitive with their customer base,” Jens asserts.

The new product will also do away with commercial banks, which, Jens explains, in the past have been reluctant to work with the iGaming sector.

“Unfortunately, commercial banks in Malta tend to take a rather conservative stance when it comes to choosing who to do business with. While being careful is of utmost importance in all industries, we find it hard to understand why certain banks refuse to open bank accounts for companies that have absolutely all their requirements in order. Nowadays obligations of AML and good governance place very onerous commitments on operators which in turn are taken extremely seriously. Once these are fulfilled to everyone’s satisfaction, and all documentation is evident and produced to show for it, it should not be a problem for a company to operate – yet we know they still find issues. This is something that we wanted to help with,” Jens explains.

Asked about the company’s experience being based in Malta especially in the aftermath of the 2021-22 FATF greylisting, Jens confirms that although it certainly was a hiccup, it served as an impetus for recollection and growth.

“Obviously no one enjoyed the setback, but we must concede that the situation was handled very well by all concerned. I noticed how the industry came together to support Government and work in unison to get out of the predicament as quickly as possible,” he argues. “In fact, I trust that the industry grew from this episode, because new and improved standards didn’t hinder operations. On the contrary, they helped cement the industry’s reputation for excellence and bring new trust, which is always crucial for doing business.”

Commenting on the financial services industry in Malta, Jens follows on the same argument, noting how the landscape is consolidating.

“It is only natural that at boom stage you get several operators that open shop without perhaps fully understanding the entire complexities of the operation. Over the years we have seen how these outfits were slowly but surely being weeded out, and now the industry is practically made of reputable organisations that offer solid reliable services to their customers,” he continues.

FinXP continues to pride itself on having an intimate understanding of the iGaming business, placing the company at an optimal position to provide services that fully satisfy their clients’ needs.

“Further to our superior offering, we also develop tailor-made solutions for clients. We know that no one client is like another, and while there are several underlying similarities, they will require special solutions according to their needs. This, together with our vision of being a true one-stop shop for all payment needs for our clients, enables us to offer an unrivalled service,” Jens concludes.

This interview was first carried in the 2023/2024 print edition of iGaming Capital magazine, the sister publication to iGamingCapital.mt, both produced by Content House Group