Banks may often be reluctant to offer payment services to high-risk industries such as the igaming sector. But according to Jens Podewski, payment solutions provider FinXP is making waves in the industry as a one-stop solution for gaming companies struggling to access payment and banking solutions.
Speaking to Payment Expert, the FinXP Founder and CEO began by shedding light on the company’s backstory and the reasons why high-risk industries are a big focus for the company.
He said: “The idea for FinXP came to me when I realised that to stand out we needed to serve legitimate firms in high-risk industries. Many high-risk companies are being discriminated against when it comes to payment services.
This was something that I experienced a long time ago, and it helped me realise that there was a gap in the market. The way I see it, these companies need a specialised payment service provider. And that’s exactly where FinXP comes in.”
Beyond payment services, Podewski also noticed that many igaming operators face obstacles when trying to set up a bank account. Not having an account poses challenges for day-to-day business operations.
“We noticed that a large number of our clients have struggled to get a bank account or payment account – so our idea was to combine both payments and banking services to offer a ‘one stop shop’ portfolio for our clients.
“Quite often, banks do not see high risk industries as having much potential because … well, they’re high risk. Without a bank account or payment account, this could potentially block other business opportunities for these companies. This is the discrimination that I experienced several years ago and so as FinXP, we are offering a solution to this widespread issue.
“As a result, clients are getting an IBAN payment account with us. We are open to serving high-risk businesses because we are highly experienced in the market, with over 10 years in the space, so we are very knowledgeable in understanding how to manage risk. In the igaming industry for example, we serve both international tier-1 operators as well as start-ups.”
As part of the discussion, the CEO noted that while a payment account can prove challenging – another hurdle can be creating a stand-out user experience.
A convoluted UX, he explained, can increase churn which ultimately causes a headache for the operator.
“At FinXP, we have consultants that are ready to resolve any payment-related issues that our partners might have. We want to add value – so identifying what needs to be done to make life as easy as possible for the client is crucial.
“To add value, we have a two-pronged approach. The first is that we have a very wide portfolio of products. From us, clients can get products that are expected from the typical payment service provider, with access to hundreds of payment methods all over the world as well as access to an IBAN account facility.
“We are also ready to go live with the XP White Card, a white label Mastercard debit card. We are the issuer of the card which can be used by platforms either for internal spending or even to distribute to customers as a way to access paid-out funds.
“The second way in which we’re really helping our clients to navigate the big challenges in igaming is through our specialised payment consultancy. We can offer support, expert guidance and even develop tailor-made solutions that our IT team can build in-house.”
Now that we’re seven months into 2022, the focus has shifted towards the plans for the year ahead. Podewski has “high expectations” for the company, and is confident that FinXP will continue to stand out in the market with new payment products and new strategic partnerships.
“Furthermore, we are constantly getting more experience across different verticals and we are also developing greater technical capabilities that will help us bring to market innovative solutions. Open Banking is one case in point where the hands-on know-how of our development team is growing quickly.
“Looking towards the remainder of 2022, I have high expectations for FinXP in terms of product features and service quality. Both consumers and businesses expect a seamless payment experience, and this is definitely something that we will continue to strive towards in 2022.
“I see FinXP as the go-to-payments partner for corporates operating in high-risk industries. We are proud to be serving market leaders of great repute and this bodes well for our future moving forward. To stay abreast with industry insights and company developments, subscribe to FinXP’s monthly newsletter here.”