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The challenge of expansion

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“I believe careful planning and due consideration are the cornerstones to setting up a successful, thriving business in another country,” writes Khangal Nergui founder and CEO of Storepay

 

The Oxford English Dictionary defines an entrepreneur as “a person who makes money by starting or running businesses, especially when this involves taking financial risks”.  I can therefore state with certainty that my life so far has been an extraordinary entrepreneurial journey.

In 2009, when I was 18, I launched Mongolia’s first-ever sports magazine, Sole, along with my cousin. For our first issue, we spent every waking hour producing 180 pages of content. Five thousand copies were sold over the course of six months, igniting my passion for business. A few years later I founded Mobile Advertising LLC, a business where companies in Mongolia ran their ads on the headrest displays of taxis. This was a first for the country, so the business was considered a pioneer at the time. However, I decided to close this company after a year due to external circumstances and rapid changes in consumer behaviour, and, in doing so, I learned a very valuable lesson: people will only fully embrace new technology when they are ready for it.

I attended the National University of Mongolia, achieving two Bachelors degrees in both business and law. After this, I completed a Master’s degree in International Business at Queensland University of Technology in Australia. It was during my time there that I learned a lot about what it takes to be successful. I drove a delivery truck as a part-time job, starting at five in the morning. This involved manually loading and unloading 10 tons of deliveries each day. I would then attend my classes and finish the day with a session in the gym. I realised success will always follow hard work and dedication, and that nothing is impossible. These are my core values as an entrepreneur.

Khangal Nergui

I returned to my native Mongolia where I worked for a political institution. But I couldn’t shake the feeling that this was not the correct fit for me. I also felt that Mongolians could benefit from purchasing goods and services in instalments with no fees through a Buy Now Pay Later (BNPL) solution. Many Australians successfully embraced this option while I lived and studied in the country and I thought it would be a great service in Mongolia.

Noticing this market gap led me to start another company. The global BNPL market increased by almost four hundred per cent between 2019 and 2021. Further growth means BNPL transactions are predicted to increase by more than US$450 billion between 2021 and 2026. My vision was to offer Mongolians BNPL solutions to boost financial equality in the country and boost people’s purchasing power. I initially found it difficult to know where to start with yet another new business but eventually embarked on the process in distinct stages. This involved looking for investors, sourcing IT professionals to build the system, and merchants to partner with. Another lesson was learned: careful stage planning will lead you to your ultimate goal. I was lucky enough to find my first investor after three months and with his US$150,000, I was able to fund the start of a fintech company, Storepay. The BNPL provider was officially launched in November 2019 with just myself and two employees. It enjoyed rapid growth within the Mongolian market since, and my ambition is to expand to several other countries, starting with Southeast Asia. However, before expanding into a new market, it’s crucial for a business to weigh the costs and benefits of doing so. I would certainly recommend a detailed analysis of the taxes, fees, and tariffs involved. Such is the value of international trade, the WTO (World Trade Organisation) estimates that world trade values increased by four hundred times between 1950 and 1922.

If the market isn’t right for the product offering, the company risks wasting valuable time and resources. Expanding any sort of business overseas is never a decision that should be taken lightly. The pitfalls, particularly those of an unforeseen nature, can be immense. The COVID-19 pandemic is a perfect example. Between 2019 and 2020 the number of individuals in employment globally fell from 3.3 billion to 3.19 billion, likely caused by the effect of the virus on the global economy. I feel businesses with the most efficient contingency plans in place were those who weathered the COVID-19 storm most successfully.

I believe careful planning and due consideration are the cornerstones to setting up a successful, thriving business in another country. Networking is something I take particularly seriously. How to network successfully is another of the key lessons I have learned in my professional life. Every business requires partners and the best local ones can be sourced through both networking and rigorous market research. This will result in a local network of contacts all of whom will understand local market conditions in their particular territory. These will almost certainly include consumer preferences, behaviours, and trends. Hiring and retaining the right talent can be a challenge, including finding employees with the appropriate skills and cultural fit.

Every country has varying privacy and financial regulations. Therefore, it’s so important for a business to adhere to local laws and regulations. These may include meeting data privacy requirements, complying with anti-money laundering regulations, and obtaining necessary licences. The business must ensure it has the right technology and infrastructure to support its new market operations. Adapting existing technology solutions to meet local needs while ensuring scalability can pose unique difficulties.

Competing with established businesses and local startups can be particularly challenging, so I would recommend learning as much as possible about the competitive landscape. This will help in developing a strategy to differentiate your business from its competitors. Any new business needs to provide consumers with a convincing argument as to why they should choose them. You’ll need to be prepared to do a lot of convincing, particularly with technology vendors, merchant partners, and users. There will be tough days and unexpected events. By normalising and accepting them as part of the process you’ll keep both a cool head and an open mind to successfully deal with whatever comes your way.

Business

Exploring the symbiotic advantages of SoftPoS for merchants and consumers

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By: Brad Hyett, CEO at phos by Ingenico

 

Amid the dynamic shifts that have come to define today’s fintech landscape, convenience holds more sway than ever before. Driven by the global surge in adoption of contactless payments in recent years, Software Point of Sale (SoftPoS) has emerged as a transformative phenomenon, taking on a pivotal role for consumers looking to make quick and easy payments, while providing a vast array of benefits to merchants.

At the very heart of SoftPoS technology lies the ability to turn any NFC-enabled smartphone or tablet into a payment terminal. This innovation has sent ripples of excitement and intrigue through the fintech community: by allowing merchants to stray from the traditional method of accepting payments through costly hardware like chip-and-pin machines. The technology has removed barriers that for many years have stood in the way of small businesses looking to adopt digital payments.

With the recent system outages on payment platforms Square and Cash App, which have cost small-business owners thousands in lost revenue, businesses might be looking at additional ways to process payments. In its very essence, SoftPoS solutions allow both merchants and consumers to harness the full potential of the devices they already use in all aspects of their daily lives.

Empowering merchants through customer satisfaction

The appeal of SoftPoS solutions goes well beyond their cost-effective nature. It revolves around enhancing the customer experience by making payments seamless, rapid, and trouble-free. Armed with an NFC-enabled smartphone or tablet, merchants can effortlessly finalise transactions with a simple tap.

Through SoftPoS, the ability to accept contactless payments becomes accessible to a broader range of merchants, enabling customers to conveniently use their preferred payment method in more locations than ever before. This streamlines payment experiences, making them convenient, concise, and straightforward. The era of struggling to find the right amount of cash or swiping cards is fading away, being replaced by a smooth payment process that aligns with the fast-paced essence of modern life.

Yet, this transformation isn’t unidirectional. The benefits of SoftPoS have a positive impact on merchant operations as well. The simplified checkout procedure increases the chances of completing sales, and when combined with swift transactions, it leads to shorter lines, happier customers, and a higher number of sales within the same timeframe. SoftPoS solutions grant businesses greater mobility, enabling them to provide a more personalised customer service and expedited checkout experience. The outcome is amplified revenue and a strengthened financial standing.

The convenience of rapid transactions stimulates repeat business, nurturing loyalty among efficiency-minded consumers. In a competitive business landscape, retaining customers is of utmost importance. With the increasing prevalence of contactless payments, enterprises cannot afford to lag behind. The appeal of SoftPoS extends beyond its present advantages. It serves as an investment that prepares businesses for the future, positioning them at the forefront of the payment technology revolution.

Staying ahead of the innovation curve

As we look ahead, the momentum towards a completely contactless future of payments is set to increase exponentially. With smartphones and tablets seamlessly integrating themselves into every aspect of our daily routines, SoftPoS has emerged as the conduit for a secure and streamlined customer experience while addressing the growing demand for convenient and immediate experiences.

Here are the top three reasons as to why SoftPoS implementation is the boost that merchants need to bolster their bottom line and stay ahead of the innovation curve:

  • Enhanced security: As the demand for seamless payment methods intensifies amongst merchants, the imperative expands far beyond convenience to encompass the integrity and security of each transaction. Accreditations such as the PCI’s CPoC standard add an extra layer of reassurance for customers and sellers that facilitate contactless payments.
  • Inclusive financial ecosystem: The meteoric rise of SoftPoS solutions serves as a testament to the disruptive nature of innovative technology in how it is reshaping the business landscape. It signals the dawn of a more streamlined, all-encompassing ecosystem. This accessible and cost-effective technology empowers merchants with modest resources to remain competitive and relevant in the evolving financial landscape – an invaluable boon for small-scale vendors.
  • Customer satisfaction through a cost-effective method: Harnessing the capabilities of smartphones and tablets as payment terminals wields a twofold advantage; a potent combination of cost-effectiveness and elevated customer satisfaction. In a realm hurtling towards the complete digitalisation of payments, SoftPoS is an absolute necessity. Businesses that have been quick to embrace its potential in its early days have positioned themselves to lead the way in the future of payments.

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Banking

Building towards an inclusive financial future

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By Catharina Eklof, CCO of IDEX Biometrics

  

From the visually impaired to displaced migrants, the unbanked, and people living with dementia – a burgeoning financial gap exists across many areas of society. In fact, as of late 2021, almost one-third of adults around the world were reported as unbanked according to the World Bank Group. That’s around 1.7 billion people – with half coming from the poorest 40% of the world’s population. Being financially excluded in this way means not having access to common financial services including savings accounts, loans, a credit rating, or even a bank account. Those who are awaiting clearance to join a country’s financial ecosystem, such as migrants, are also finding themselves left behind by the modern financial infrastructure.

As societies reliance on digital and contactless transactions over cash continues to grow, this financial gap is only set to widen. In less than 10 years, the share of Americans not using cash for payments has increased by double digits, reaching 41%. By 2031, cash payments are expected to make up only 6% of all transactions.

Fortunately, biometric smart cards can bridge this gap for people in the Global South, migrant populations, as well as those with visual or cognitive disabilities worldwide, who deserve to feel secure, included, and independent.

 

The challenges surrounding passwords

 COVID accelerated the transition from cash to contactless payments and the use of digital wallets, creating a challenge for many. By 2024, it is expected that digital wallets and cards will account for 84.5% of all e-commerce spend.

Digital transactions traditionally rely on the use of PINs that can easily be forgotten, as studies have found that we manage 100 passwords on average across various sites and services. In the US alone, consumers report relationships with more than three financial institutions and have more than four accounts per household. The challenge of password recollection is only growing. To counter rising cybersecurity threats, several countries now mandate two-factor authentication for retailers and service providers, creating further complexity.
However, organizations are responding to financial exclusion. Card provider Mastercard introduced its contactless PayPass offering, as well its Touch Card developed alongside Amjan Bank which enables the visually impaired to distinguish between their cards. Both look to provide a better customer experience for people struggling with the digital changeover. For those living with dementia, Mastercard has also partnered with Sibstar and the Alzheimer’s Society to create a specific card where limits, transactions, top-ups and notifications can be viewed and managed via a complementing app. Likewise, Turkish neo bank Papara introduced a Bluetooth debit card that provides visually impaired users with audio prompts when making payments.

 

Protecting the visually impaired

There are at least 2.2 billion visually impaired people globally. In 2019, it was found that 89% of visually impaired have been victims of fraud or have made errors when paying for goods and services. This figure comes prior to the pandemic, and the proliferation of digital transactions, suggesting an even bigger concern today.

PINs present an obvious security issue for this demographic, with others able to oversee their inputs and then manipulate them. Contactless payments go some way to solving that problem but pose the risk of fraud as there is no PIN verification below the increasing threshold amount, now at £100 in the UK, where the average annual wage is £27,756. In India, where the average annual wage is 9,45,489 rupees (roughly £9000), contactless limits are set to 5000 rupees (£48). Many accounts also require visual-based inputs to prove identity, such as CAPTCHA, proving as a barrier for the visually impaired.

Enhancing awareness on a regulatory level is key for driving change and reassuring vulnerable groups. The EU Accessibility Act is an example of how payment service providers are obliged to comply with accessibility standards. This includes making interfaces perceivable, operable, understandable, and robust, to ensure that individuals with disabilities can effectively navigate payment interfaces.

 

Paving the way with biometrics

 Including braille on cards for easy identification is a crucial step for the visually impaired. This can also be used on biometrics smart cards, with sensor textures to confirm the user has selected the correct method of transacting. Not only do these cards provide convenience and inclusivity, but they also promote ultimate security by linking a person’s identity directly to their fingerprints. This data is encrypted within the card itself, reducing any concerns surrounding fraudulent behaviour or of data being lost via a centralized breach or large-scale hack.

In this context, biometrics can be used to serve the unbanked and those currently unrecognized within national infrastructures. South America is an example of an early adopter of biometrics, turning to the solution to cope with swelling population sizes, and the challenges associated with accessing proof of identity when setting up traditional bank accounts. Meanwhile in India, pension payment fraud has dropped by 47% thanks to bypassing the need for prior credit ratings or credentials.

Liveness detection, however, which ensures the biometric sensor is reading a true biometric source (rather than a false or recreated image of one), is vital to the success of financial aid programs globally. Securing remittances through biometric authentication ensures transparency and better fund control. Directing funds to cold wallets or biometrically authenticated cards can also improve program efficiency, safeguarding the interests of individuals and communities.

Overall, the biometrics market is expected to grow to US$87.4 billion by 2028, at a CAGR of 17%. Whilst its value as a simple and secure method of transacting is growing substantially, you can’t put a price on its impact on those who have so-far fallen through the gaps of finance’s digital revolution.

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