Latest news with #FasterPayments
Yahoo
5 days ago
- Business
- Yahoo
Beyond SEPA: The true impact of payment fragmentation for payroll providers
The payments sector has recently experienced a maturity not seen in decades. Largely as a result of the Single Euro Payments Area (SEPA) and the Faster Payments initiative, moving money across borders in Europe is now relatively simple and friction-free. If only the same could be said of all elements of the payments system. Even in 2025 - and despite all of the innovation which we have seen in the sector -global payroll providers continue to face a costly labyrinth of fragmented payment rules, data gaps, and outdated networks, leading to failures and eroded trust beyond SEPA's reach. The true cost of this global payment patchwork extends far beyond fees, encompassing hidden expenses from manual corrections and failed payment investigations. This need not be the case. Ingrained complexity and friction This complexity is somewhat mystifying, and unnecessary. For instance, payroll providers must get to grips with a multi-layered system comprising obligatory contributions like taxes and social security, which vary from country to country. In addition, these providers are often required to manage non-statutory benefits such as health insurance and meal vouchers, which are often used by companies to attract and retain talent. Managing these payments accurately, on time, and in compliance with local regulations can be a major headache. For payroll providers, payment errors or failures can increase customer complaints, leading to an increased burden on support teams. If there are even just a few such errors each month, the time spent on remediation can mount quickly. The limitations of payments orchestration For a long time, payroll providers have used payment orchestration to simplify their cross-border payments. Traditionally, the orchestration layer provided a single platform through which a multitude of payment providers and gateways can be managed. On its own, however, payments orchestration is insufficient as the current models fall short for high-volume global disbursements by not fully abstracting away underlying contractual and compliance burdens. For one, orchestration consolidates settlement service providers only. It does nothing for collections or payout processes. Moreover, with orchestration, payroll businesses are still required to manage a vast number of contracts, KYC requirements, and APIs. Significant levels of complexity remain unaddressed. There's also a major challenge to be addressed around scale. For all their benefits, orchestration platforms are unregulated and unable to sit in the flow of funds. That means users are unable to scale them fast or effectively, which in turn drives up costs. Reducing complexity through payment curation and smart automation Recently, however, innovations in financial technology and smart automation are opening new approaches to cross-border payments that promise to address many of the challenges faced by payroll providers. Payments curation allows organisations to access the best payments providers around the world through a single contract and one API. With the potential to become a new industry benchmark, payments curation offers unprecedented precision, cost reduction, and operational simplicity through intelligent validation and direct local payment rails. In turn, businesses like payroll companies need only pay once to enable a full payments stack inclusive of payment acceptance, settlement accounts, and payouts and the ability to manage them across borders. In addition to the process resulting in reduced complexity, payments curation also enables payroll companies alike to draw on advanced data validation processes that enable them to automatically check account details to meet the unique requirements of each jurisdiction. Using AI, data validation engines can scrutinise each payment request received by payroll companies to ensure they include all the necessary details for the country in question. This method leads to highly accurate transactions and fewer payment rejections, improving not only the process for payer and payee, and in turn boosting company trust and loyalty. Finally, payments curation enables organisations to make use of local payment rails, saving them the trouble of managing a large network of correspondent banks. Using local payment rails in this way helps avoid the delays and complexity that are commonplace with international transfers. As a result, payment providers can accelerate their payments processing while also reducing the considerable fees that often come with cross-border transactions. Bringing payroll into the digital age The proliferation of digital services has raised expectations. Now more than ever people demand convenience, speed, and simplicity - and that is no different when it comes to payments. Payroll companies must ensure they can meet this demand with efficient, low-cost payments that work every time. Failure to do so could ultimately damage customer relationships and lead to lost business. Fortunately, with payments curation and smart automation, businesses have a cross-border payments option that's much better suited to the digital age. Those that embrace these innovations stand to gain a significant competitive advantage. Eddie Harrison is Chief Growth Officer and co-founder of Navro "Beyond SEPA: The true impact of payment fragmentation for payroll providers" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
08-07-2025
- Business
- Yahoo
Finmo receives electronic money institution licence in UK
Fintech firm Finmo has secured authorisation from the UK Financial Conduct Authority (FCA) to operate as an electronic money institution (EMI). With the licence in place, the company aims to establish UK as the core operational hub for its treasury and payments platform. With the EMI licence, Finmo is now permitted to issue electronic money, provide account issuance services, and facilitate both domestic and international fund transfers, as well as foreign exchange transactions. It also allows the company to issue IBANs and directly integrate with the nation's clearing systems, including Faster Payments and the Clearing House Automated Payment System. Finmo CEO and co-founder David Hanna said: "Securing our EMI licence in the UK signals more than just regulatory approval, it's a commitment to serving clients in one of the world's most advanced financial ecosystems. 'From fintechs to mid-sized global companies we're here to empower modern finance and payment teams with greater control, visibility, and confidence in their global treasury operations." The expansion into the UK market aligns with Finmo's "hub-and-spoke" strategy, which seeks to offer services from key regulatory jurisdictions. Additionally, the licence is expected to aid Finmo in scaling its embedded finance solutions and enhancing collaborations with capital market providers for liquidity and FX risk management. Finmo has announced the immediate launch of GBP-denominated accounts and access to Faster Payments for qualifying clients. The company is also increasing its UK-based compliance and operations team to support its services to mid-market enterprises based in the UK, international businesses with cross-border operations, and companies seeking regulated treasury infrastructure. The company recently introduced MO AI, a conversational assistant integrated within its treasury platform, to assist CFOs, controllers, and finance teams in managing workflows. This tool is designed to provide real-time information on balances, payments analysis, transaction initiation, and report generation through command-based interactions. This approval follows Finmo's Series A funding round in February, where the company raised $18.5m, taking its total funding to $27m. "Finmo receives electronic money institution licence in UK " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Finextra
08-07-2025
- Business
- Finextra
Confirmation of Payee five years on
0 This content is contributed or sourced from third parties but has been subject to Finextra editorial review. Five years ago, the UK's financial landscape underwent a profound transformation with the introduction of Confirmation of Payee (CoP) . The service was launched by in 2020 to reduce the number of misdirected payments by verifying the account details of the intended recipient before a payment is made. Having since also demonstrated its effectiveness in mitigating and reducing certain types of fraud, the service has now become a customary part of the payment journey for both payment service providers and end users. I've had the privilege of working as part of the team that took CoP from a blueprint in 2018 to a service that today covers 99% of organisations initiating Faster Payments in the UK, and completes more than 2.1million checks every day. Most importantly, however, are the impressive results brought about by the service in this time. The Credit Payment Recovery sent claim percentage rate for the 'incorrect account' category (as a proportion of Faster Payment sent transactions) is a sound indicator of a reduction in misdirected payments. Since the launch of CoP , we have seen a 59% reduction in this category and a 20-40% reduction in financial losses to end users for some types of fraud, according to the UK Finance Annual Fraud Report 2025. Confirmation of Payee's international influence Owed to its measurable impact and innovative nature (a full name matching capability that provides a more robust and user-friendly solution than earlier binary (yes/no) and attribute-based checks), Confirmation of Payee has come to be seen as a 'poster child' of payment verification initiatives around the world. We have, and continue to, actively engage with our international counterparts, sharing the insights and learnings from our own journey, to help inform the development of these initiatives and strengthen payment security. These collaborative efforts have delved into critical aspects of implementation, including legal and liability frameworks, directory implementation, testing methodologies, customer communications, and the development of standardised matching logic and user experience. The rollout of New Zealand's GetVerified in 2024, Australia's Confirmation of Payee in July 2025, and Europe's Verification of Payee in October 2025, all serve as testament to both Confirmation of Payee's influence in effectively reducing misdirected payments and mitigating financial crime, and a shared understanding of the critical need for enhanced payment security on a global scale. The future of payment verification As we reflect on CoP's remarkable journey five years on, the question naturally arises: what's next? As well as maintaining the vital service that CoP provides, it is also crucial to continually assess the evolving financial landscape and progress the service as new challenges and opportunities emerge. We are currently exploring other use cases of the service and whether there are other organisations, further to payment service providers, that could benefit from employing CoP, such as Bacs Approved Bureau and Bacs Approved Software Solution providers. We are also looking at how we can implement other fraud prevention and detection tools that can check additional data points that can support payment service providers in identifying potential fraudulent accounts prior to a payment being processed. The most ambitious vision is a future where CoP transcends national borders. The ultimate goal is a truly global service that can be applied to cross-border payments, rather than relying on a multitude of similar, yet separate, services across different countries. This would not only enhance global financial integrity but also streamline cross-border commerce, benefiting governments, businesses and individuals. To this end, we will continue to monitor the development of similar initiatives around the world and, in parallel, explore how we can refine our own model to ensure interoperability for cross-border payments. CoP has already proven to be a powerful tool in the fight against financial fraud and payment errors. Its journey from a domestic initiative to an international standard is a testament to its efficacy and the collaboration of the global financial community. As we look ahead, we will continue to leverage the success of CoP, both in the UK and in a global context, to build a more secure, efficient, and borderless payment ecosystem for everyone, everywhere.
Korea Herald
08-07-2025
- Business
- Korea Herald
Treasury and Payments Platform Finmo Secures UK EMI Licence, Expands Global Footprint
LONDON and SINGAPORE, July 8, 2025 /PRNewswire/ -- Fast-growing fintech company Finmo has received approval from the UK Financial Conduct Authority (FCA) to operate as an Authorised Electronic Money Institution (EMI). This strategic milestone marks a major step in Finmo's global expansion as it establishes the United Kingdom as a core operational hub for its next-generation, integrated treasury and payments platform. With the EMI licence, Finmo is now authorised to issue electronic money and offer a range of payment services in the UK, including account issuance, domestic and cross-border fund transfers, and foreign exchange transactions. The licence also enables Finmo to issue IBANs, hold safeguarded client funds locally, and integrate directly with UK clearing systems such as Faster Payments and Clearing House Automated Payment System. David Hanna, CEO and Co-founder of Finmo said, "Securing our EMI licence in the UK signals more than just regulatory approval, it's a commitment to serving clients in one of the world's most advanced financial ecosystems. From fintechs to mid-sized global companies we're here to empower modern finance and payment teams with greater control, visibility, and confidence in their global treasury operations." Finmo was founded in 2021 by David Hanna, Akhil Nigam, Richard Oh, Raj Vimal Chopra, and Thomas Kang - financial technology veterans with decades of collective experience across corporate treasury, global banking, payments, and compliance. Finmo's entry into the UK market is part of its hub-and-spoke expansion strategy, designed to serve clients across multiple regions from key regulatory jurisdictions. The licence also supports Finmo's plans to scale embedded finance solutions and deepen partnerships with capital market providers for liquidity and FX risk management. Immediate rollouts under the EMI licence include the launch of GBP-denominated accounts, and Faster Payments access for eligible clients. Finmo is also expanding its UK-based compliance and operations team to support these efforts. This move enhances Finmo's ability to serve UK-headquartered mid-market enterprises, international businesses with cross-border operations, and companies with complex financial requirements looking for regulated, high-performance treasury infrastructure. The company recently launched MO AI, a conversational assistant embedded directly within its intelligent treasury platform. Built for CFOs, controllers, and finance teams, MO AI transforms fragmented, multi-entity workflows into a unified, real-time experience, enabling users to retrieve balances, analyse payments, initiate transactions, and generate reports using command-based prompts. About Finmo Finmo is a global financial technology company transforming the way modern finance teams manage treasury and payments. The company was founded in 2021 by David Hanna, Akhil Nigam, Richard Oh, Raj Vimal Chopra, and Thomas Kang - financial technology veterans with decades of collective experience across corporate treasury, global banking, payments, and compliance. Its intelligent platform integrates payments, FX risk mitigation, liquidity and cash management, and financial system connectivity into a single, secure solution - providing real-time visibility, control, and operational efficiency across global financial workflows. Trusted by fintechs and mid-sized global companies, Finmo holds regulatory approvals in key jurisdictions including Singapore, Australia, New Zealand, Canada, the United States, and the United Kingdom. The company is committed to building a faster, smarter, and more resilient financial infrastructure for the digital economy.
Finextra
27-06-2025
- Business
- Finextra
Spendbase launches digital banking and virtual cards
Spendbase, a spend management platform that helps businesses save on software and cloud costs, is launching a new suite of financial tools that take spend control to the next level: Digital Banking and Virtual Cards. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. With this release, Spendbase moves beyond expense optimization and into the core of business finance, growing into a central hub for financial management. The new features empower companies to manage money smarter, move faster, and save more. What's New? With Digital Banking, companies using Spendbase can now: Get their business up and running in no time with a modern digital banking solution Save time and instantly open corporate IBANs for the EU and UK Make fast bank transfers via SEPA and Faster Payments Gain more control with sub-accounts for specific teams, individuals, or projects. The new Virtual Cards functionality allows users to: Easily issue from one to 100 virtual cards per organization Stay in control by setting precise spend limits for each card Multiply your savings by earning up to 1.5% cashback Benefit from enhanced security with 3DS, ensuring every transaction is truly yours Spend Smarter The launch slogan, 'Stop Spending Around,' captures the essence of Spendbase's mission: to give businesses radical visibility and control over their corporate spending. With new functionality offering granular controls at the team, account, and individual levels, companies can now track and optimize every dollar even better. 'Saving money has always been in our DNA — it's not just what we do for our customers, it's how we operate internally. We're seriously cost-efficient, and now we're turning that mindset into products. These tools pay for themselves by helping you spend less — and this launch is a major step in that direction.' Andrew Alex, CEO, Spendbase From Optimization to Full Control Spendbase originally made waves by helping companies cut waste in their software and cloud spending. For some mid-sized clients, that meant saving up to $150K in under a year. The platform quickly onboarded high-profile clients including Preply, MacPaw, Provectus, Happy Monday, YouScan, and others. Today, Spendbase supports 800+ businesses worldwide. One of the platform's standout features is its performance-based pricing: Spendbase charges 25% from what it helped you save. That means the platform is fully aligned with its clients' success — clients typically save four times more than they pay. With the addition of banking and virtual cards, Spendbase now delivers end-to-end spend visibility — from procurement to payment. 'Spendbase isn't here to replace your bank or existing cards. Every card has its perks for different needs. Think of Spendbase as the card that comes with the biggest savings. It's a complementary tool in your finance stack, focused entirely on eliminating spend waste.' Max Bondarenko, CMO, Spendbase
