Improving Access to Banking Infrastructure and Ensuring Compliance With Transact Pay

At Money20/20 Europe in Amsterdam, Transact Pay, an e-money institution and BIN sponsorship provider, showcased its strategy for supporting fintechs struggling with access to banking infrastructure. During the event, Transact Pay’s CEO, Aaron Carpenter, discussed the challenges fintech companies face when launching new products or expanding their customer base, often due to inadequate support from traditional credit institutions and banks.

Carpenter highlighted that many traditional banks do not adequately cater to the unique needs of fintechs, creating significant barriers. To address this gap, Transact Pay positions itself as a facilitator of financial services, allowing fintechs to grow without needing to obtain their own licenses. This model helps fintechs focus on building their business and customer base, offering a solution to the lack of suitable banking support.

Transact Pay also collaborates with regulated financial institutions to provide services that these institutions might not offer directly. For instance, if a bank wishes to offer a current account but not a debit card, Transact Pay can provide the necessary card services, effectively filling in the gaps for fintechs that lack expertise or resources in specific areas of financial services.

A critical component of Transact Pay’s offering is its support for compliance. The company helps fintechs navigate the complex and evolving landscape of financial regulations. Carpenter emphasized the importance of a “stable regulatory base,” which Transact Pay provides by assisting fintechs in developing robust policies and procedures, choosing the right tools, and ensuring these tools are properly configured. This support enables fintechs to allocate more resources toward product development and market launch, with less concern over regulatory issues.

In the interview, Carpenter also touched on Transact Pay’s recent developments and future plans, as well as the company’s commitment to diversity, equity, and inclusion, highlighting the broader values driving their business strategy. This comprehensive support system aims to empower fintechs, facilitating innovation and growth in a highly regulated industry.

Source: thefintechtimes.com.

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