Payment gateways in cross-border payments

Advantages for payment service providers

Remaining successful as a global player amidst the shifting markets means adopting a business resilience framework that ensures a robust cross-border payment flow. Aka., moving funds across jurisdictions reliably. 

Underneath the surface, however, the process is more nuanced. Given the increasing exposure to geopolitical disruptions and competitive pressures, payment service providers (PSPs) have to overcome a number of challenges before they can ensure a complete cross-border payment cycle:

- Ability to scale quickly and deploy new solutions globally 

- Adapting to the requirements of local payment schemes and ensuring compliance with regional regulators 

- Ability to adjust to the most relevant technological developments, operational and business models 

- Orchestrating transaction flow in the most robust and cost-effective ways possible

Addressing these issues requires tools that can help to coordinate technical, financial, operational and transactional aspects of the payment process. Such capabilities, by design, are present in payment gateway technology.

Commonly considered the go-to option for payment acquiring, a full-featured payment gateway, such as the DECTA White Label Payment Gateway, can offer PSPs and their customers much greater depth and versatility across the following critical domains.

Payments

PSPs looking to extend coverage outside their primary geographic jurisdiction need integration with local acquiring banks and payment methods in each country to onboard local businesses and international companies that wish to operate in that market.

A payment gateway can enable you to set up technical integrations with any acquiring financial institution that meets your current payment requirements. Further, it allows you to route payments to the bank most favourable for you and your customers.

Regulatory compliance

To facilitate cross-border payments, it is essential that you ensure compliance with the requirements of regulatory authorities in each country your business is present in. A payment gateway allows you to integrate directly with financial institutions, security service providers, and local payment schemes.

A separate and essential set of compliance requirements is dictated by data protection laws demanding that payment data does not leave the country of origin. A cloud-based payment gateway solution allows you to scale quickly and set up your payment services locally anywhere in the world where AWS infrastructure is available.

Technical enablement

Not only does the technological landscape change over time, but it also varies significantly from one region to the next. Technical integrations help service providers quickly adopt features and functionality necessary to operate in target markets. This may include integrating local payment methods, business automation platforms, point-of-sale networks, and other third-party services.

Depending on how a particular gateway solution is set up, it can either have a fixed number of ready-to-use integrations or allow you to pick and choose any additional services for optimal performance.

Business integration

An often overlooked use case for payment gateway technology is running it as a single control panel for your day-to-day business operations. Apart from serving as a hub for key service integrations, it can provide valuable back-office capabilities. These include compliance and onboarding automation, standard and custom reporting, sub-merchant account management, and providing consistent payment data for BI insights.

Competitive advantage

The competition among PSPs has also increased, with the global payments industry growing bigger and busier in the past few years. How can a payment gateway solution help your business stay competitive and retain market share? Here are some examples to consider:

- Quick development cycle and short time-to-market. This ensures that you can bring your payment services to new markets faster. For instance, the DECTA White Label Payment Gateway can be set up in just three weeks anywhere in the world.

- White labelling options help establish your brand and build a more trustful relationship with your customers.

- High certified uptime. It is good practice to aim for 99.99%, which ensures you can provide reliable, uninterrupted payment services.

- Customizability and quick response time. Solutions that offer quick on-demand customisations enable you to roll out new services and features quickly.

Cost-saving

Cost-saving advantages of a payment gateway solution spread beyond initial product pricing and bridge into cutting operational and business expenses: 

- Adopting a market-ready solution helps PSPs save significantly on custom solution development.

- Simplified and standardised integration process helps reduce costly developer hours.

- Solution providers with internal teams of developers and support professionals can ensure that all the necessary developments and integrations will be handled in a timely manner and accurately, providing the necessary support and maintenance afterwards. This improves accountability and helps avoid hidden costs.

- Sending payments to the acquirer offering the best terms and interchange rates helps you save on per-transaction fees.

Bottom line

Global events of the past few years have sent shock waves through the entire economy, highlighting the need for forward-thinking business transformation and the importance of strategic partnerships.

DECTA is a global processing company and a certified payment service provider, enabling PSPs, banks and fin techs to meet their payment requirements worldwide.

With a service portfolio that includes a white label payment gateway, issuer and acquirer processing, and a digital banking platform, we are already driving the success of our clients in 32 countries.

Learn more about our offer at decta.com

Contact us at [email protected] to discuss how we can help your payments business grow.