A compelling offer: Banking Circle settles six per cent of Europe’s B2C e-commerce
Squaring the PSP circle The ‘super correspondent bank for the new economy’ has been signing up PSPs so fast that it’s now settling six per cent of all Europe’s B2C e-commerce transactions. We asked Banking Circle’s CIO, Michel André, what’s attracting them Realising improvements in settlement times, reconciliations and processing is a business imperative for payment service providers (PSPs) facilitating cross-border transactions on behalf of their clients. But delivering it via a network of rails and a shrinking international correspondent banking system where every foreign exchange (FX) conversion and handling charge erodes your margin, https://europe.money2020.com
is challenging – and diverts resource from more profitable endeavours, such as data insight and enrichment aimed at increasing conversion rates and improving efficiency for clients. Which probably explains why PSPs have been forming a queue to join Banking Circle’s ‘super correspondent bank for the new economy’. Among them are an increasing number that lift and shift payments for e-commerce marketplaces – including muscular outfits such as Alibaba and Shopify and, recently, the Dutch Online Payment Platform (OPP), which currently serves more than 170 such consumer sites across Europe and is looking to expand its geographic reach. Having access to real-time local settlement in 25 currencies, via one bank that has eyes on the ground in terms of compliance in every territory, is a compelling proposition for such businesses. It’s certainly helped to build Banking Circle’s transaction volumes considerably over the past two years.
Now working with more than 150 financial institutions and looking to process $250billion of payments by the end of 2021, it already settles six per cent of Europe’s B2C e-commerce payments on behalf of banks, fintechs and PSPs. Payments has always been a scale business – more so since mobile pay, various contactless payment regulations, a pandemic and a growing trend towards spreading larger transactions over buy now, pay later agreements has considerably increased the number, and lowered the individual value, of transactions. Banking Circle’s CEO Anders la Cour made clear, at a panel discussion hosted by Paris Fintech Forum at the start of this year, that building volume was a priority for businesses like his. And it’s achieving it. As fast as Banking Circle onboards banks and fintechs – it has no direct relationship with individual SMEs and corporates – it is also making technology links with central banks and local settlement schemes to attract more.
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