5 major payment challenges of banks, PSPs, and financial institutions

The financial service industry has become increasingly complex, with various challenges and opportunities. Payment processing has become an increasingly important part of the financial services sector, yet it is also one of the most challenging aspects.

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Five biggest payment challenges financial service companies face

With new technologies, increased security requirements, and ever-evolving customer experience expectations, it's no surprise that banks, PSPs, and other financial institutions might face a number of payment industry challenges.

1

Data security & cyber incidents

As data breaches become prevalent, the security of customers' payment data and transaction processing becomes one of the major concerns worldwide. Virtual threats jeopardise not only money but clients' personal data as well.

What can be done?

  • Two-factor authorisation
  • Biometric authentication
  • Data encryption
  • Real-time alerts and notifications
  • Behaviour analysis
2

Regulatory compliance & changes in legislation

The financial sector is one of the most regulated, requiring strict compliance with various governmental regulations. Financial institutions, banks, and payment service providers must comply with these standards and regulations to deliver customer services securely. This challenge becomes acute when expanding to new countries.

What can be done?

  • Make sure software and applications are legally compliant
  • Hire legal counsellors with latest rules knowledge
  • Partner with a payment platform that complies with all industry standards
  • Use PCI-compliant payment intermediary
3

Cross-border payments

Providing smooth cross-border payment services is a challenge for both banks and PSPs. The reasons lie in the number of intermediaries and payment processing fees they all charge for their services and currency conversion while processing a transaction. As a result, cross-border payments might be slow and expensive.

What can be done?

  • Partner with a payment gateway that processes payments utilising smart routing
  • Use dynamic currency conversion
  • Increase the efficiency of each transaction
  • Broaden your audience
4

Mobile & tech expertise

More and more users are becoming digital-savvy, displaying a shift in payment preferences to online methods. Moreover, users don't want just an opportunity to use digital payment services; they look for a seamless and secure user experience. Non-user-friendly apps and services result in lost clients and profit.

What can be done?

  • Hire a team of experienced developers to create a high-end solution
  • Rely on ready-made solutions maintained by their creators
  • Use white-label business model solutions
  • Focus on seamless and secure user experience
5

Personalisation of services

This aspect is a core value for banking services. Modern personalised banking services are like a personal financial wellness coach who interacts with you when needed via the channel you want and offers solutions that meet your needs. People demand convenience from modern products and service providers.

What can be done?

  • Understand your customers' behaviour and trends
  • Use payment reconciliation and transactional data analysis
  • Get deeper insights into your audience's habits and preferences
  • Analyse users' preferred payment methods and time for payment

How InstaxPay helps overcome payment challenges

Digital transformation is attainable for every financial services company — bank, PSP, or financial institution — if there is sufficient time and resources. Some businesses want to be in charge of everything, but such a path is quite rocky and time-consuming.

PCI DSS compliance

We meet the strictest requirements of the highest PCI DSS level, closely monitoring each transaction to protect businesses and customers from possible identity theft and fraud.

400+ ready-made integrations

Integrating InstaxPay, businesses get access to 400+ ready-made integrations and 1200 payment providers from our network.

Payment management

Our platform enables clients to perform payment management and reconciliation via a convenient Payment dashboard.

Save time and resources

There is a way to save you tons of time, manual effort, and financial resources. InstaxPay's payment orchestration platform offers a set of smart tools that help to overcome the majority of challenges.

Entrusting us with processing your transactions eliminates the need to pursue PCI compliance because you already have a fully protected payment processing system at your disposal.

Check our solution with your very eyes on a live demo

Frequently Asked Questions

Find answers to common questions about our payment orchestration platform

InstaxPay is a universal feature-rich payment hub for online businesses and payment institutions. We integrate payment providers and acquirers all around the world to bring a unified communication, control, and management interface. Our platform helps businesses streamline payment processing, reduce integration complexity, and improve transaction success rates.

Getting started is simple. Sign up for an account, complete the onboarding process, and connect your payment providers. Our team will guide you through the integration process, and you'll have access to comprehensive documentation and API references. You can also test in our sandbox environment before going live.

We support 1200+ payment providers in our network, including major processors like Stripe, PayPal, Adyen, and many regional providers. Our platform offers 500+ ready-made integrations, so you can connect with providers worldwide without additional development work.

With InstaxPay, you can accept various payment methods including credit and debit cards (Visa, Mastercard, American Express, Discover), digital wallets (Apple Pay, Google Pay, Samsung Pay), bank transfers, local payment methods, and cryptocurrencies. Our platform supports 200+ currencies and cryptos, giving you global payment acceptance.

Our intelligent routing system automatically directs transactions to the best-performing payment provider based on success rates, costs, and region. Cascading allows failed transactions to automatically retry with alternative providers, maximizing your approval rates and ensuring smooth payment processing.

Yes, security and compliance are our top priorities. We are PCI DSS Level 1 certified and comply with GDPR, PSD2, and other regional regulations. All transactions are encrypted, and we provide advanced fraud prevention tools, 3D Secure support, and comprehensive risk management features to protect your business and customers.

InstaxPay offers real-time transaction monitoring and comprehensive analytics dashboards. Track transaction success rates, revenue, refunds, chargebacks, and provider performance. Generate detailed reports, reconcile payments automatically, and gain insights into your payment operations to optimize performance and reduce costs.

Absolutely. InstaxPay offers white-label payment provider solutions that allow you to brand the platform as your own. Perfect for payment institutions, PSPs, and businesses that want to offer payment services under their brand. We provide full customization options and dedicated support for white-label implementations.

We provide comprehensive support through multiple channels including 24/7 technical support, dedicated account managers for enterprise clients, detailed documentation, API references, and an active developer community. Our support team is available via email, chat, and phone to assist with any questions or issues.

Our pricing is flexible and scales with your business. We offer transparent transaction-based pricing with no hidden fees. Contact our sales team for a customized quote based on your transaction volume, required features, and business needs. We also provide an ROI calculator to help you estimate potential savings.

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