Why Companies Avoid Creating Their Own Money Transfer Platforms

Many companies prefer to collaborate with external partners when creating money transfer platforms. Avinash Chidambaram, Founder and CEO of Cybrid, and James Wester from Javelin Strategy & Research discussed how these partners can assist in managing compliance requirements and developing payment applications.

Challenges in Creating a Platform

Creating a money transfer platform requires substantial resources, especially for startups and fintech companies. Challenges include Know Your Customer (KYC) requirements, compliance with regulations, and platform launch. Additionally, regulatory requirements vary by region, adding complexity.

"We are surprised that difficulties with transfers or cross-border operations multiply in each new market," said Chidambaram.

Technology Partners and Their Role

Technology partners can bear the regulatory burden instead of the company, helping to simplify processes. They can also provide more efficient solutions in terms of cost and resources. "Let others manage changing rules so you can focus on business growth," asserted Wester.

Recurring Challenges Across Segments

Companies in the field of transfers and B2B face similar challenges, such as KYC/KYB data collection. Pre-built APIs simplify the process, making it more secure and less resource-intensive. Fast payments are becoming increasingly important, especially in the global economy where operations occur 24/7.

Disadvantages of Working with Infrastructure Contractors

Not all contractors can offer equal support. Basic elements may not fit the specific jurisdictions and their stringent requirements. Open repositories and AI tools often fail to provide the necessary solutions for business growth at more complex stages.

"If money is lost due to fraud, companies will incur real costs," noted Chidambaram.

Business Conclusions

Companies developing platforms for international transfers or B2B payments should seek a partner who offers a comprehensive approach. The right partner can provide better features, such as liquidity management and round-the-clock transfers. This allows companies to focus on user experience and competitive advantages.

"Details can lead to fines or loss of partner," added Wester. Chidambaram emphasized: "We’ve eased your path so you can focus on the core of your business, not on payment details."