Banks and Payments Tech Meet in the Middle, Reach Inclusion

Feb 26, 2019

The fast-moving world of payments technology, also known as fintech, continues to threaten the revenue flows of banks and the way the world does business. However, some fintechs have recognized how banks and payments can collaborate to build a better customer experience through innovation and speed. Those that continue to work alone and not work to become allies instead of adversaries will be left in the lurch.

Using the Differences Between Banks and Payments to Make Something Better

When financial institutions and fintechs work together, they are taking the bests at what they do and making something even better. Since banks are process-oriented, they operate with a long-established regulatory framework and other system that has hurt their ability to implement new technologies that help improve the customer experience.

On the flipside, Fintechs are more customer-focused and not bogged down in regulations, and time-honored operating models. Though this approach allows them to leverage the latest technology, such as artificial intelligence to customize customer experiences, they have not built up the trust that’s the heavily-regulated banking system can offer.  However, by combining their strengths, they can deliver all of it.

Companies that Have Moved Toward Collaboration

Some banks, like Citibank, Barclays, and Goldman Sachs offer accelerator programs for payment techs. These programs offer seed money, mentoring, connections, and education. Meanwhile, Deutsche Bank and HSBC, for example, have invested in fintech firms, offering solutions, like data analytics, personal finance, and wealth management. These financial institutions have recognized the opportunities and have ran with them.

What This Means for the Future

Though banks and fintechs continue to work out the kinks with the culture gap being their biggest obstacle, both are seeing how they can help each other. Banks, which manage risk, can help fintechs understand and how to manage regulatory challenges and built up trust. Fintechs, on the other hand, can help banks better adapt to the innovative, and frequently-evolving culture of today. Most importantly, the groups not only need to help each other because it looks good, but because it will bring about something much better. The best collaborations will be mutually beneficial, sustainable, and complete change the nature of their offerings. Financial inclusion for unserved and undeserved populations will hinge on all of these factors.

The Final Say

The relationships between fintechs and banks will continue to evolve as will customers’ needs. Collaboration will make them power forces that can meet current and future customer needs and demands. Both will need to continue to look at their collaborative efforts and fine-tune them. As they assess them, they should figure out whether they are solving specific problems, does it save money, does it improve the customer experience, and what were the overall results. Once they have the answers to those questions, they will be able to know what works, what doesn’t, and what needs to happen next.

Apply for Merchant Account Services Today

If you need merchant account services or credit card processing, contact a high-risk merchant account provider like, (EMB). It not only works with merchants of all backgrounds, chargeback histories, processing histories, and less than perfect credit scores, EMB offers fraud and chargeback mitigation tools. It provides a variety of payment solutions. Apply online today using EMB’s simple, streamlined application. Eligible applicants get approved in as little as a couple of days. Apply online today and get begin accepting debit and credit payments.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat