We are at a moment in history with technology radically changing and influencing virtually every global industry. We rely on telehealth to see our doctors. Robots can take our orders and deliver our food at restaurants. In addition, many of us are working remotely through the power of virtual meeting software. The payment industry has also been altered by technology. The price of technology continues to fall, and its functions continue to improve, making technology more accessible. As a result, this affordability and accessibility have led to an explosion of innovation in the payment industry.
Innovation in the Payment Industry
In the payment industry, we have seen faster transaction processing. Moreover, we have seen the introduction of cryptocurrency payments and simpler access to payment apps. Technology-based payment companies have been allowed to flourish, providing access to users wherever they may be. The payment industry has been growing tremendously, and the market slates to hit $374.9 billion by 2030.
One of the critical issues the payment industry should see in 2023 is a focus on security and compliance. Industry Fintech meets the security and compliance needs of startup payment companies with intelligent back-office solutions for clients built on the IFT platform.
Effectively Scaling Through Security
There are many considerations when aiming to scale a business, from operations to technology. However, compliance is one of the most significant considerations. This is especially from the perspective of investors and stakeholders. When courting potential investors, startups will want to prove that their backend platforms are compliant and their payment systems are secure. The last thing investors want is to become financially involved with a company with compliance and security issues.
To build trust with their investors, startups need a back office platform built by financial tech experts — one that can guarantee compliance and the best security practices. With startups, it is typical that the founder or CEO may not be an expert in all areas of business.
By outsourcing considerations such as payment compliance and security, startups can focus on other aspects of building their ventures without concern. Industry Fintech has created a singular platform that allows startups to help clients comply with any requirements of private investors.
An Industry in Need of Security Solutions
The payment industry can be rife with scams and security breaches. “As non-bank technology companies, they are not held to the same regulatory standards as banks,” says Industry Fintech Founder and President Sandy Fliderman. “The payment apps want to reduce their liability and maintain client loyalty, which drives their security and protection systems. However, there is no requirement for them to provide guarantees to their clients or provide insurance such as FDIC.”
Regarding regulations, payment apps are simply not held to the same standards as banks. Users often have trouble with hacking or irreversible charges that are difficult, if not impossible, to dispute. Digital payment apps also rely on personal information input and often link to bank accounts, leaving clients vulnerable to breached and/or stolen financial information. Businesses that depend on payment apps must set their customers and investors at ease with robust compliance and security measures.
AI Technology
The rise of better technology has its pros and cons for the financial industry. The boon of payment apps hitting the market has given consumers and businesses more options than ever before. However, it has also left people and businesses vulnerable. The increased use of AI in financial transactions has created specific issues that Fliderman says we need to continue to be aware of. “AI-generated videos and voices can impersonate real people like celebrities, politicians, and — in recent cases — bankers,” he recently explained to Consumer Affairs. This AI technology tricks people into revealing passwords, showcasing the vulnerability of payment technology as all technology improves.
Improving Security and Compliance
To improve security and compliance measures, businesses must seek out better data encryption and stronger customer authentication measures. In addition they must perform regular security audits of their payment programs. Industry FinTech is ready to take on these compliance and security measures. It offers the reporting, analytics, governance, and bill pay services necessary to navigate the business in today’s tech-heavy market.
“In a world of inexpensive and ubiquitous access to advanced payment options driving record growth, the industry now needs to be concerned about managing the downside risks of the incredible platform built,” explains Fliderman. In the eyes of Industry FinTech, it all comes down to trust risk. “The payments industry is dependent upon all users believing the payment platform to be a trusted third party. Strangers engage and move money based on their belief in trust and protection. If those were to erode, then users may search for other approaches to facilitate payments.”
Final Notes
Fliderman and Industry FinTech bring a unique understanding of technology and industry disruption to the table. Fliderman was recently recognized as a Top 10 CTO by C-Level Focus. He shared his perspective on what Industry FinTech does with the site. “It’s only through transformative efforts that companies today realize true success,” Fliderman said, “to be able to keep them competitive in a new world where there is no barrier for any company to access cutting-edge technology.”
Industry FinTech builds a platform around building trust. As technology continues to improve and access to better, more robust payment options become available. As a result, startups will need expert guidance to remain compliant and trustworthy, not only to investors but also to customers who are putting their money in their hands.
